Malabon misses revenue targets by P627M
by Allan Yves Briones
The Commission on Audit (COA) flagged the city government of Malabon for not meeting its 2018 revenue projections by over half a billion pesos, which could deprive its constituents of key benefits.
“It bears to stress the realization of the target estimates guarantee the funding of projects, programs and benefits (PPAs) of the City essential in the delivery of public service to its constituents,” the state auditing agency stated in its annual audit report.
In 2018, the city government was poised to collect P1.7 billion in total revenue. However, by the end of the year, state auditors found that it missed the mark by P627 million, only collecting P1.07 billion.
The largest discrepancy appeared in the collection of business taxes, with the city government only being able to collect a mere 8.44 percent or P23.92 million of the original goal.
Source: 2018 Annual Audit Report on the City Government of Malabon
Eight revenue accounts were recorded to have similarly missed their projections by P147.68 million including real property, franchise and professional taxes, and other fees.
State auditors noted that while the City Treasurer maintains track of the actual collections, forecasting issues remain unaddressed due to the absence of concrete deliberation.
“[Had] there been periodic review of performance alternative steps would have been taken, if not to avoid, at least the Committee had minimize the gap between the projected versus the realized income,” COA said.
State auditors did recognize, however, that in at least nine revenue accounts, the city government realized incomes greater than local estimations.
Earnings from tax penalties, community tax, weight and measures, sanitary inspection and garbage fees provided the city an additional P28.8 million – while not enough to offset the missing values, is reportedly a step in the right direction.
The state auditing agency called on the city government to analyze and look into the factors causing the decreasing trend in collections, and formulate strategies to improve them.
According to the City Treasurer, as stated in the report, it is doing its best to meet target collection revenues for the year, supported by regular meetings to come up with appropriate measures to reach targets.