DOF challenges LGUs to keep up with digitalization goal

  • Post category:News

The Department of Finance (DOF) challenged local government units (LGUs) to keep up with its target to digitalize government processes and services.

“We are challenging LGUs to keep up and digitalize their own processes and services. [We] encourage our local governments to implement digital innovation and transformation, especially in local treasury and assessment offices,” said Finance Secretary Benjamin E. Diokno.

The process involves adopting digital or electronic facilities for business registration and renewal, as well as for the assessment and collection of local taxes, fees, and charges.

In Fiscal Year 2021, only 5 percent of LGUs made efforts to accept electronic payments through the Electronic Payment and Collection System, which resulted in total collections of PHP1.5 billion from individuals, and total collections of PHP4.3 billion from businesses and corporations.

Despite the 58 percent increase in total local business tax collections in the second quarter of 2022 at PHP83.7 billion, and the real property tax collections at PHP60.68 billion or 42 percent, the total local collections from digital platforms amounted to PHP5.8 billion, which is only 2.3 percent of the total local collections of LGUs.

On October 25, 2022, the Bureau of Local Government Finance (BLGF), in partnership with the Asian Development Bank (ADB), conducted a seminar on best tax administration practices and new technologies for local governments.

“I hope that our local treasurers and assessors, as well as personnel from the BLGF, can apply this new knowledge,” said Secretary Diokno.

In closing, he congratulated the top performing LGUs in FY 2021 for continuously improving and innovating the delivery of public services to their constituents.

“I am confident that we are on the right path towards making local finance broader, more sustainable, and responsive to the needs of the local constituency. This is an important legacy we shall leave behind for future generations as we rebuild our economy,” said Secretary Diokno.

Below is the list of top performing LGUs in local revenue generation for FY 2021 in NCR:

Performance area #1: Highest Locally Sourced Revenues

3rd place – Manila

2nd place – Makati

1st place – Quezon

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

3rd place – Muntinlupa

2nd place – Valenzuela

1st place – Taguig

Performance area #3: Year-on-Year Growth in Locally Sourced Revenues

3rd place – San Juan

2nd place – Valenzuela

1st place – Malabon

National Top Performing Local Government Units in Local Revenue Generation for FY 2021:

Performance area #1: Highest Locally Sourced Revenues

Provinces

3rd place – Pampanga

2nd place – Bulacan

1st place – Rizal

Cities

3rd place – Manila

2nd place – Makati

1st place – Quezon

Municipalities

3rd place – Carmona, Cavite

2nd place – Limay, Bataan

1st place – Cainta, Rizal

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

Provinces

3rd place – Aklan

2nd place – Quirino

1st place – Cebu

Cities

3rd place – Damariñas

2nd place – Taguig

1st place – Urdaneta

Municipalities

3rd place – Initao, Misamis Oriental

2nd place – Malilipot, Albay

1st place – Kauswagan, Lanao del Norte

Performance area #3: Year-on-Year Growth in Locally Sourced Revenues

Provinces

3rd place – Cebu

2nd place – Benguet

1st place – Lanao del Norte

Cities

3rd place – San Pedro

2nd place – Malabon

1st place – Urdaneta

Municipalities

3rd place – Tubajon, Dinagat Islands

2nd place – Malilipot, Albay

1st place – Kauswagan, Lanao del Norte

Below is the list of top performing provinces, cities, and municipalities for FY 2018-2020:

Performance area #1: Highest Locally Sourced Revenues

Provinces

3rd place – Bulacan

2nd place – Rizal

1st place – Bataan

Cities

3rd place – Manila

2nd place – Makati

1st place – Quezon

Municipalities

3rd place – Carmona, Cavite

2nd place – Cainta, Rizal

1st place – Limay, Bataan

Performance area #2: Collection Efficiency (CE) of Locally Sourced Revenues

Provinces

2nd place – Negros Oriental

1st place – Capiz

Cities

1st place – Navotas

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Link to as-delivered speech: https://www.dof.gov.ph/keynote-speech-awarding-of-certificates-of-recognition-and-pinning-ceremony-for-the-seal-1-certified-local-treasurers-and-awarding-of-top-performing-lgus-in-fy-2021/