The local government of Makati City has been recognized as the country’s top city in sustaining its fiscal autonomy through local revenue sources and posting the highest per capita spending for the past two fiscal years.
With the achievement, Makati Mayor Abby Binay has expressed gratitude to the city’s business sector and residents for their unwavering support, which has contributed to the city’s robust economic growth.
“Your trust and cooperation have been indispensable to the sustained robust economic growth of the city, paving the way to better services and benefits for all stakeholders,” said Binay.
The local government’s achievements have reached seven as given by the Department of Finance’s Bureau of Local Government Finance (DoF-BLGF) as it recognized Makati as the top city among all cities in the country after recording the highest ratio of local source revenues to total current operating income for fiscal years 2022 and 2023.
It also posted the highest total current operating expenditure per capita among cities for two straight years.
“We are honored to receive these accolades. These are testaments to the persistent efforts of the city government to expand our revenue base through reforms and smart innovations that promote efficiency and transparency in our revenue collection and processing of business permits and licenses,” Binay said.
According to the BLGF, Makati’s ratio of local source revenues to total current operating income reached 86.84 percent in 2022 and 90.60 percent in 2023. The high ratio indicates the city’s high level of independence from external sources, such as the national tax allotment and shares from the Philippine Economic Zone Authority and the Philippine Charity Sweepstakes Office.
The country’s financial center has also recorded the highest total current operating expenditure per capita among all cities, with P24,050 in 2022 and P23,995 in 2023.
“For the past eight years, Makati’s sustainable and strong local economy has made it possible for the city government to undertake game-changing innovations that have made our services and programs better and more conveniently accessible to residents and other stakeholders,” Binay said.
In the latest report of City Treasurer Jesusa Cuneta, the city has surpassed its revenue target for the year as of end-August. Total revenue collection reached P18.8 billion, or 102 percent of the P18.4-billion target.
The report shows business tax as the highest revenue source, followed by real property tax. The city also collected significant amounts from fees and charges, economic enterprises, and interest income.
As of end-September, the city government has approved the registration of 3,900 new businesses this year, with a combined capital investment worth P31.87 billion. A total of 34,771 business establishments have renewed their permits during the same period, registering gross sales of P1.87 trillion.