Internal Revenue Allotment Research Articles

The Impact of the Cityhood of Tabuk on Human Development

The study analysed the impact of Tabuk’s transition to cityhood on various aspects of development, including economic, socio-cultural, political, and environmental dimensions. It sought to understand the demographic profile of respondents, encompassing age, gender, civil status, educational attainment, and employment status. It examined the city government’s demographic profile, including population, land area, income, and internal revenue allocation. The study evaluated the city government’s delivery of services and facilities and assessed the level of impact of Tabuk’s cityhood on economic, social, cultural, political, and environmental development. The research employed percentage analysis for respondents’ demographic profiles, documentary analysis for the city government’s profile, mean to gauge service and facility delivery, and regression to determine the cityhood’s impact on economic, social, cultural, political, and environmental development. Data collection primarily relied on questionnaires. Diverse groups, including business, agriculture, healthcare, education, professionals, transportation sectors, and community groups, participated in the survey. Key findings revealed that a significant proportion of respondents were under 24 years old, with the majority being female, married, and holding at least a bachelor’s degree. A substantial portion of degree holders reported unemployment. The Internal Revenue Allotment of Tabuk City exhibited substantial growth, and local income sustained growth. Population increased, and land area expanded. The study affirmed the city government’s effective provision of services and facilities, fostering socio-economic, political, cultural, and environmental development. Respondents’ demographic profiles, particularly age and employment status, significantly influenced service delivery. Moreover, service and facility delivery significantly predicted the city’s impact, particularly in infrastructure, tourism, low-cost housing, tourism promotion, and support for education, police, and fire services. Based on these findings, recommendations were made, such as crafting comprehensive communication plans, developing public-private partnerships, investing in green initiatives, promoting waste segregation, supporting entrepreneurship, initiating reforestation projects, creating a cemetery office, and establishing a gender and development office to enhance gender equality and inclusion. Keywords: Tabuk cityhood, human development, service delivery, demographic profile, impact assessment

Implications of the Mandanas-Garcia Ruling on Local Health Systems.

The Supreme Court decision on the Mandanas-Garcia petition regarding the internal revenue allotment given to local government units is a significant ruling in strengthening the concept of decentralized governance and in the delivery of services. While the ruling grants local government greater resources and financial support, the immediate implication is the full devolution of services defined in the Local Government Code, including health services. The urgent concern is how much the Mandanas-Garcia Ruling will affect local health systems. Through a review of related documents and publications, this paper presents some existing and foreseeable issues surrounding the implementation of the Mandanas-Garcia Ruling in relation to the current devolved healthcare system. In particular, challenges in implementing the ruling in relation to health devolution, the local health system process, and the Universal Health Care Act are discussed. Some concrete action points for addressing these issues are also posited for policy-makers and implementors to consider in order to ensure not just the smooth and efficient implementation of the ruling but also the continuity of care for Filipinos.

Strategic Action for the Seaweed Industry in Bongao, Tawi-Tawi, Philippines

The Philippines is one of the top producers of seaweed in the world and 91% of its farm area is situated in the province of Tawi-Tawi. However, the country’s seaweed production has been declining over the years due to various factors. This study focused on identifying a strategic action that will highly influence the sustainability of the seaweed industry in the province through capitalizing on the public and private collaborations. This study has taken the perspective of focusing on the integrative authority of a Local Government Unit (LGU) as a supreme governing body of a locality and utilized an organizational approach in addressing the core issue. In the province of Tawi-Tawi, almost all the marine products or around 8,000 tons are being transshipped through the ports of Bongao annually. Bongao is the de-facto capital municipality of the province and acts as a conduit of development in the provincial, regional, and national seaweed productions. On the other hand, the LGU of Bongao has been heavily dependent on the Internal Revenue Allotment (IRA) and needs diversified income streams. One area it can provide potential service deliveries is facility support to the major industry in the province through local enterprises. This service modality will provide an encompassing benefit towards addressing the overarching issues in the seaweed industry and improve the financial health of the LGU. The analytical tools that were applied are the Problem Tree Analysis (PTA) and Objective Tree Analysis (OTA). The PTA was used to identify the major constraint and the corresponding causes and effects within the scope of the situational analysis. The OTA was employed to determine the strategic action needed through targeting the core issue in the PTA.

INTERNAL REVENUE ALLOTMENT: THE CASE OF BARANGAY CALAMBA, CEBU CITY

This study focused on exploring the knowledge level of awareness and implementation of the Internal Revenue Allotment in Barangay Calamba, Cebu City. It sought to determine the answer 1. What is the demographic profile of the respondents, 2. What is the level of awareness of the respondents towards internal revenue allotment? 3. What are the strategies used by the Barangay Captain in collecting internal revenue allotment and its level of implementation? 4. What is the perception of the respondents on the contribution of the collected Real Property Tax to the operation of Barangay Calamba? The research design used was descriptive, that is by employing percentage distribution and frequency counts in presenting and analyzing the data obtained from a sample of fifty-eight (58) respondents. A validated researcher-made questionnaire was used to collect the primary data. The findings on this study revealed There was a barangay development plan; however, budget allocation is the problem observed, and these plans were not fully implemented. With those problems, this paper suggests that education be given importance, it is recommended that barangay personnel and authorities participate in an integrated capacity-building program. Educating people on practical issues such as dealing with the administration of IRA towards development, not only the officials but most importantly, the residents or the ordinary people too, so that they will be able to participate and contribute to their own development.

Internal Revenue Allotment: The Case of Barangay Calamba, Cebu City

This study focused on exploring the knowledge level of awareness and implementation of the Internal Revenue Allotment in Barangay Calamba, Cebu City. It sought to determine the answer 1. What is the demographic profile of the respondents, 2. What is the level of awareness of the respondents towards internal revenue allotment? 3. What are the strategies used by the Barangay Captain in collecting internal revenue allotment and its level of implementation? 4. What is the perception of the respondents on the contribution of the collected Real Property Tax to the operation of Barangay Calamba? The research design used was descriptive, that is by employing percentage distribution and frequency counts in presenting and analyzing the data obtained from a sample of fifty-eight (58) respondents. A validated researcher-made questionnaire was used to collect the primary data. The findings on this study revealed there was a barangay development plan; however, budget allocation is the problem observed, and these plans were not fully implemented.

Socioeconomic Characterization of a Southern Philippine City, before 1898-2015: A Historical Perspective

The socio-economic characteristics of a city unfolded from its past can help policymakers understand its socio-economic trend and devise plans for its development. This paper focused on documenting and characterizing the socio-economic status of Dapitan City, Philippines, briefly before 1898, during the American occupation until the present republic in 2015 by making use of archival methods. Furthermore, interviews with the seven key informants supported and strengthened the data. Over the years, Dapitan City in Zamboanga del Norte has become greatly dependent on the Internal Revenue Allotment (IRA), which is the fiscal transfer in the Philippines that serves as the biggest source of operating revenues for the local government units (LGUs) to perform their functions. In its history, the economic conditions of Dapitan improved, albeit slowly if compared to other progressive cities in the country. This rate of transition from a less progressive to a more progressive state can be explained by Dapitan’s natural and historical aura, which is still being preserved and protected. Despite this advantage, the transition depicted in the history of Dapitan did not offer an abundance of economic opportunities that would have catered to the needs of its human resources and eventually helped disadvantaged groups move above the poverty line. Dapitan did not take advantage of becoming the center of a progressive economic structure due to the different paths it took to formulate its concept of progress and modernization. Life in Dapitan is simple as the city is not subject to the rapid process of industrialization. It only attracted a few big business investors that could create more and a variety of jobs.

The Continuing Challenge of Maldistribution of Human Resources for Health

The Continuing Challenge of Maldistribution of Human Resources for Health

Comparative Trend Analysis on Revenue Generation among Selected Municipalities in Surigao Del Sur, FY 2000-2018

This study determined the trends on revenue generation among selected Municipalities in Surigao del Sur for Fiscal Years 2000-2018. It employed a descriptive method of research using Trend Analysis. The study is conducted in selected coastal Municipalities, namely: Bayabas, Marihatag, San Agustin, and Tago. The study found that all municipalities understudy generated revenue from local and external sources. The local sources include the following: Real Property Tax, Business Tax, Other Taxes, Regulatory Fees, Service Charges, and Income from Economic Enterprises. Externally sourced revenues include the Internal Revenue Allotment (IRA), Share from the National Wealth, Grants and Donations, Extraordinary Receipts, Loans and Borrowings and other Local Government Transfers. The study revealed that the difference in revenue of the concerned Municipalities is mainly attributed to their income classification, Tago, a 2nd class Municipality-followed by Marihatag (3rd class), San Agustin (4th class) and Bayabas (5th class). Thus, LGUs concern are encouraged to increase their revenue generation efforts through different strategies. They may focus on improving their Real Property Tax and Business Tax assessment and collection system. They may also engage in various public-private partnership to finance various socio-economic development endeavors, like investing in viable modern economic enterprises. Thus, when revenue increases, LGUs can finance the essential social welfare services that were not prioritized due to inadequacy of resources.

Financial Administration of the Internal Revenue Allotment (IRA) Among Barangays in Bayugan City, Agusan de Sur, Philippines

In the Republic Act 7160 otherwise known as the Local Government Code of 1991 has considerably altered the nature and participation of the local government units in the pursuit of national development. Considered that the barangays is the smallest political system in the Philippines were given the responsibility and authority to implement barangay development of their Internal Revenue Allotment. Hence, despite the allocation for the Internal Revenue Allotment (IRA) to barangays for the development, problems affecting the administration of such fund are so obvious.
 
 The system of administering the barangay development programs has evolved along with the changing structure of our government. The study aimed to describe the financial administration of the Internal Revenue Allotment (IRA) of barangays in Bayugan City. The cross-sectional survey research design was used frequency counts and distributions were utilized to present and analyze the data gathered. The sample barangays were taken through purposive sampling using income as the main criterion. Primary and secondary data thru the questionnaire and documents. The allocations of the 43 barangays of Bayugan City tend to increase. The barangays had also sourced their funding needs from sources other than IRA or alternative sources.
 
 Recommendations, there must be an in-depth review on the procedure of allocating the IRA among barangays in Bayugan City. Likewise, an in-depth review on the required itemized budget be carried out of expenditures for barangays must be carried out such that barangays prone to calamities may have options in regard to their annual allocation; The barangay officials should strengthen further the participation of all barangay constituents in determining the priority projects and similar studies should be conducted in order to know further the extent of the strengthens and weakness.

A PHILIPPINE MODEL FOR INFORMATION SHARING FOR EFFECTIVE REVENUE COLLECTION THROUGH E-GOVERNANCE

—Local revenues are the backbone by which local governments anchor the sustenance of their operations, functions and projects within their jurisdiction. Local Government Units (LGU’s) in the Philippines depend heavily on local revenue generation- for their development. Although having the Internal Revenue Allotment (IRA) given by the national government through which they support their activities and promote their growth, each local government unit through its treasury office rely on an effective local tax administration and collection system in order to get the best possible resource to serve this purpose. Nevertheless, the problem of local revenue tax collection is a perennial problem and this is traced to many factors that play a part in the inability of the local treasury office to exercise their function to the fullest merit. Optimum tax collection efforts can be enhanced by the local treasury office should it have the ability to synchronize information records which allows the treasury office to check and verify the records taxpayers paying business taxes. Access to this knowledge will give the local treasury the capability to maximize tax collection effectively. And because the local treasury organization like any other government organization is structured to become compatible with new technology development to help it faced with changes in its environment, present day technology in terms of information is now made part of that response. Verification of accuracy of payments through collaborative inter agency efforts is now available. This requires three agencies to collaborate in comparing actual gross sales/receipts from declared gross sales/receipts based on the gathered documents like the books of account, audited financial statements, vat returns and the official receipts as proof of payment of the local business taxes. Three agencies have been mandated to collaborate on this endeavor: the Local City Treasury, the Bureau of Internal Revenue and the Secur

Production, Recruitment, and Retention of Health Workers in Rural Areas in the Philippines

Objective. This study aimed to examine capacities and initiatives of the local government units (LGUs) in the Philippines in producing, recruiting and retaining human resources for health (HRH). Methods. This 2-phase, descriptive, cross-sectional study employed multiple methods such as key informant interviews (KIIs), focus group discussions (FGDs) (for Phase 1) and surveys (for Phase 2) in rural municipalities across the country. Phase 1: We employed qualitative methods to develop a quantitative questionnaire in 22 purposefully selected municipalities. An exhaustive enumeration of responses from the guide questions of the FGDs and KIIs were then translated into a questionnaire. Phase 2: We administered the survey questionnaire from phase 1 to another 67 municipalities to obtain a greater representation of the intended study population as well as quantify results from the qualitative methods. We analyzed data with descriptive statistics. Results. Initiatives in HRH production were mainly on provision of scholarships. Active recruitment was not done due to lack of available pool of applicants, lack of vacant positions, financial constraints leading to utilization of deployment programs and temporary nature of employment. Recruitment was influenced by budgetary constraints, political biases, dependency on deployment programs and other hired temporary HRH, and set health worker-to-population ratios. Initiatives to retain HRH were largely financial in nature based on pertinent policies. The capacities of LGUs to produce, recruit, and retain needed HRH were strongly dependent on the internal revenue allotment (IRA), along with their local income. Conclusion. Rural municipalities in the Philippines have initiatives to produce, recruit, and retain HRH. However, these are not enough to meet the needed number of competent and highly motivated HRH that are expected to respond to the unique needs of the rural municipalities. Strategies to increase the capacity of LGUs, address the shortage of HRH, and increase motivation of HRH are recommended.

THE EFFECT OF REVENUE SHARES ON LOCAL GOVERNMENT SPENDING: EVIDENCE FROM PHILIPPINE PROVINCES

Intergovernmental fiscal transfer (IFT) is one of the several sources of funds of sub-national governments. There are two general types of IFT — conditional and unconditional. In many developing economies including the Philippines, the usual existing IFT is a form of unconditional fiscal transfer called revenue shares. In the Philippines, this revenue-sharing scheme is called the internal revenue allotment (IRA). Empirical literature says that unconditional IFTs are the type of fiscal transfers with the least effect on local government spending. The literature posits that the reason for this is that local governments use these transfers to substitute for own-sourced revenues such as local taxes. This explanation was formalized through a framework presented in this paper. Using panel data from Philippine provinces for the years 2001 to 2015, this paper attempted to determine the effect of revenue shares, in the form of IRA, on local government expenditures. Using different econometric methodologies, this paper arrived at several conclusions. First, IRA has a strong positive effect on total local government spending with a marginal effect slightly greater than one — much higher than what comparable studies found using data from other countries. Secondly, the effect of IRA on local government expenditures is even stronger for provinces with relatively greater ability to generate its own funds. Next, IRA and other externally sourced revenues have much stronger marginal effects on local government spending than do own-sourced revenues. Finally, IRA has widely varying effects on different components of local government expenditures.

Assessing the Revenue Raising Capacity of the Local Government of Bongabon in the Philippines

One source of funding for sub national government is imposition of taxes. It is imposed upon individual and corporation within the territorial jurisdiction of the municipality. Local governments are funded through Internal Revenue Allotment (IRA) provided by the National Government. The purpose of the study is to assess the local revenue generation capacity of the municipality of Bongabon, Nueva Ecija in the Philippines. The paper revealed that its calculated collection efficiency is only 20.6% of the total collectibles on Real Property Tax. The average local revenue raising capacity of the municipality of Bongabon, Nueva Ecija within the period of 7 years (2011 to 2017) is only 40.9 % of the externally sourced revenue or IRA. The study concluded that the municipality of Bongabon, Nueva Ecija remains dependent on national government when it comes to funding. The study also identified various constraints to efficient tax collection while local citizens perceived the LGU capacity to collect tax negatively. More studies on tax capacity are encouraged to come up with sufficient baseline data that may serve as inputs to policy making and solve the problems of tax collection in the local level.

Local Government Units in the Philippines: Are you ready for Federalism?

This paper analyses the existing fiscal architecture of the Republic of the Philippines in relation to its Local Government Units. It assesses the present defects in order to guide developers of the new federal framework. This analysis begins with the Local Government Code (LGC) of 1991 or Republic Act No. 7160 of the Philippines. One of its components in Section 284 and 285 is the formula for Allotment of Internal Revenue Taxes and the Allocation to Local Government Units respectively. This formula is currently under criticism due to the perceived unequal distribution of wealth to various provinces, cities, and municipalities in the Philippines. This has resulted in winning and losing local government units. This paper will focus on the current fiscal architecture together with its failures and defects. Emphasis will be made on the Internal Revenue Allotment for Local Government Units with its imbalances. An analysis on the existing gaps, vertical, and horizontal imbalances will be undertaken to serve as consideration before any shift or transition towards a federal system of government. Policy recommendations will be presented to serve as guidelines to consider before allocating revenues and responsibilities to each local government unit. The Local Government Units in the Philippines are ready for Federalism, however critical foundations have to be established before any shift in form is to be made.

Contextualizing Electoral Accountability on the Outcome of the May 9, 2016 Elections and Ateneo De Cagayan's First Poll Survey in Cagayan De Oro City

Can voters sanction the candidates during elections? What mechanisms are useful in holding power seekers accountable to the public? These are the questions raised on the electoral accountability of the local candidates in Cagayan de Oro City on the outcome of the May 9, 2016 elections and based on the March 12 – 16, 2016 Poll Survey of Ateneo de Cagayan. Both showed that voters do not know how to sanction their candidates. Since 1987 local elections, 45% of those elected were incumbent and 38% changed party affiliations despite the incumbents’ poor performances. In the past years, the City gained only an average 9% increase of its total income, 11% increase in local income, 45% of its income is dependent to Internal Revenue Allotment (IRA) and an average of only 43% of its development fund are utilized every year; and since 2006 had complied the annual audit recommendations with an average of only 2.6 in every 10 audit observations. The poll survey almost showed the same result where 50% of those preferred by the voters are incumbents and 50% are those who belonged to the same party with the City Mayor. Likewise, the electorates’ opinion on Barangay level problems and needs showed an overwhelming 68.63% said that illegal drugs is the top problem but records of the city’s utilization of its development fund from 2006 to 2013 provided that only an average of 6.36% of the 20% development fund were allotted for that problem. Why do voters reward electoral victory to the candidates despite their performance? Theories provide the primordial role of the civil society in maintaining the balance of power, create and articulate effectively public opinion and set the rules of the games which was totally absent during the last elections hence the voters relied only to information monopolized by the candidates during the entire discourse of the electoral campaign.

The relationship between IRA and local government expenditures: evidence from a cross-section of Philippine cities

AbstractIntergovernmental fiscal transfer (IFT) is one of the ways in which local government units (LGUs) source their funds. In the Philippines, the most common IFT is a lump-sum grant called the Internal Revenue Allotment (IRA). Empirical studies show that the unconditional lumpsum grant is the IFT type that stimulates spending the least. Using data from Philippine cities, this paper finds evidence that total city government expenditures is positively associated with IRA. A one peso increase in IRA is associated with an almost unitary peso increase in city government expenditures. This estimate is much higher than the result of most similar empirical studies using data from other countries. Moreover, this relationship varies according to the capacity of the local government to generate its own funds. IRA has a smaller marginal effect on local government spending for LGUs with more locally sourced revenues. Furthermore, not all components of local government spending are affected by the IRA. Results also...

Exploratory Analysis of the Correlation between Local Income and Internal Revenue Allotment: Focus on Municipalities that Converted to Cities from 1994 to 2009

This study seeks to explore the correlation between internal revenue allotment (IRA), on one hand, and local income generation on the other. It builds on, and seeks to contribute to, the existing literature that describes the dynamics between the level of IRA receipts of a local government unit (LGU) and the level of income it generates internally through local revenue measures and efforts. Specifically, this study seeks to weigh in on the still-unresolved debate on whether IRA has a stimulative effect or a substitutive effect on an LGU’s local income.The units of analysis used in this study are municipalities that have converted to cities from 1994 to 2009, during which period a new regime of central-to-local fiscal transfer, as embodied in the IRA system, was adopted under Republic Act No. 7160 or the Local Government Code of 1991 (LGC).Since conversion to cityhood carries with it an immediate and very significant increase in IRA receipts for an LGU, the conversion can be considered a naturally-occurring “intervention.” By isolating and analyzing local income trends prior to and after the said “intervention,” inferences can be drawn as to how an LGU’s local income-generation efforts correlate with changes in the amount of IRA it receives. The findings of this study can contribute to the on-going theoretical and empirical debate between the adherents of the “substitutive effect” and the “stimulative effect” hypotheses. Ultimately, this study aims to provide additional insight on how the system of central-to-local fiscal transfers in the country should be configured for optimal public benefit.

Explaining Catch-Up in Human Development: A Political Economy Comparisons on the Philippines and Viet Nam Since 1986

The Philippines and Viet Nam are the two most populous countries in Southeast Asia after Indonesia. This paper examines the underlying reasons for their contrasting human development and growth experiences since 1986 from a political economy perspective. By a sequenced combination of market liberalization, land reform, and public investments in health and education, plus large aid and foreign direct investment inflows, Viet Nam generated broad-based, sustained, and rapid economic growth. Viet Nam’s authoritarian but socially inclusive governments then used progressive taxation and inter-provincial transfers to translate this growth into human development outcomes. In contrast, in the Philippines, traditional elites were able to dominate the democratic process, capture rents and divert resources away from investment in human development and infrastructure, thereby stifling a short-lived growth acceleration. The Philippines has also been caught in a low-revenue, low-expenditure trap due to its porous and regressive tax system and self-reinforcing internal revenue allotment mechanism. While not without their drawbacks, economic growth and human development in Viet Nam have therefore been more inclusive, as well as faster, than in the Philippines.

Collaboration Between Administrators of National Secondary Schools and the Local Government Units (LGUs): Its Impact on the Schools’ Development

The collaboration between the Local Government Units (LGUs) and thenational secondary schools (NSS) of Misamis Oriental is seen as a need for the schools’ development. This study assessed the level of collaboration between the administrators of the 18 national secondary schools (NSS) and the localgovernment executives (LCE) in the 23 municipalities of Misamis Oriental fromthe calendar years 2007 to 2012. The instruments used were the questionnairesand interview on collaboration involving school administrators and the local chiefexecutives in Misamis Oriental. The questionnaire has a reliability coefficient ofr=.968 using Cronbach’s Alpha. The study adopted the across-stage mixed modelresearch as its statistical tool. The findings of the study showed that both localchief executives and school administrators are mature and responsible leaders intheir respective areas of responsibility. The assistance that the national secondaryschools received from LGUs are funded from the Special Education Fund (SEF)and the Internal Revenue Allotment (IRA). The level of assistance in buildingpartnerships for collaboration LGUs provided to schools is high. Most of thesupport provided by the LGUs to schools is in the form of financial assistance.Some secondary school administrators have strong collaboration with the localchief executives.Keywords: Education, collaboration, impact, school administrator, local governmentunit, IRA, SEF, Department of Education, Across-stage mixed model research,Misamis Oriental, Philippines

Gender and Development (GAD) Programs of Selected Local Communities in Mindanao Philippines

Gender and Development (GAD) is one international concern that many countries had vowed to address (Beijing, 1990). In the Philippines it has been enacted into a law called EO 273 (1995-2025) or the Philippine Plan for Gender Development. The study aimed at assessing the Cagayan de Oro City sampled local communities of their implementation of EO 273 and the utilization of the 5% allotted for Gender and Development (GAD) programs, projects and activities. The twenty (20) sampled communities were those with top ten (10) highest Internal Revenue Allotment (IRA) and another ten (10) local communities which belong to the lowest IRA. Some 220 respondents answered the survey questionnaire. Statistics employed were Pearson Correlation procedure and t-test for two independent groups. Findings revealed that all the selected sampled local communities were not able to spend the 5% mandated for GAD PPAs. Therefore, EO 273 was not fully implemented although minimal expenditures were done for GAD activities such as: Celebration of International Women’s Day annually. Lack of awareness of the EO 273 was noted. The respondents however, wanted more advocacy-seminar/trainings on the EO 273. The respondents were highly satisfied with projects on health and nutrition like feeding program while they expressed low satisfaction on project on AIDS. As to socio-cultural projects, the respondents were most satisfied on the aspect on leadership. On economic projects, the most satisfying was about cooperatives and recycling of solid waste while business and employment got low satisfaction.Keywords: Gender and Development, EO 273, Internal Revenue Allotment, GAD Programs, projects and activities, International Women’s Day.