How Does Your LGU Earn and Spend?

Does your LGU spend according to what your community needs?

We want to help you answer these questions through our second infographics series called LGU
Incomes & Expenditures. By its name, this is our attempt to present in a simple and practical way
the usually complex government data on the funds which LGUs in pre-selected areas generate,
receive and spend for during specific periods. These data enable citizens to better engage their
respective LGUs on critical areas such as how they could increase incomes, how they could better
manage their resources yearly, and how else they should spend in response to people’s needs.
But first, here’s a simple user guide on some important definitions:
On incomes:
1. Locally-generated funds: tax and non-tax revenues which the LGU collects, including real
property and business taxes, franchise tax and taxes from quarried resources. Non-tax revenues refer
to permits, licenses, and other service fees charged
2. Internal Revenue Allotment (IRA): the LGU’s share from the incomes of the national government
3. Other external funds: received through the province’s shares from national tax collections,
donations or aids, and other funds received from government agencies
On expenditures:
1. Total current operating expenditures: the expenses for all LGU services (administrative,
economic, education, health, housing, and social welfare)
2. General services: spent for services which LGUs need to do basic daily tasks like lawmaking,
public order and safety, and research

3. Economic services: spent for projects and activities that aim to promote economic growth, e.g.
water systems, tourism, and livelihood

4. Capital outlay: investments on assets, equipment, and infrastructure (e.g. buildings, roads, and
power supplies

5. Debt servicing: payment for principal payments over a period and its interest

1. How effective our Local government in collecting revenues and how do they spend

the revenues collected from the citizens.

- Local government has adequate power and authority to generate financial

resources and to utilize available and potential sources of revenue.

- On the average, the government spent our paid taxes to the following:
 o Education- they build schools, support scholars, athletes, and grant free

tuition fees. Etc.

o Health and Nutrition- granting free medicine, medical mission,

immunization and health assistance.

o Housing Projects

o Roads and Transportation

o Agriculture, Agrarian Reform and Environment Projects

o Power and Energy

o Trade and Industry, and many other assistance the government has to offer

to support its constituents.

The sources of revenues and how are they generated

- The local government has the ability and power to generate revenues from rentals and
charges for the use of public property and resources within its jurisdictions. Earnings from
local public enterprises and utilities, permits and licenses issued. Charges and fees for
local government services and activities