SELF TEST 1:

1. Considering your own municipality or province, make an assessment

regarding the contribution of decentralized local fiscal administration. Has this
strategy improved the delivery of basic services (eg. Health and nutrition) to the
concerned constituents? If so, in what ways?
-Based on what I observed, the local government in Valenzuela is doing a
great job in terms of fiscal administration. The taxes payed by the taxpayers are
allocated for the improvement of the city. It can be seen in the services and
facilities they are providing. Their strategy indeed improved the delivery of basic
services to their constituents. The services they provide has improved in terms
of education and public services. Just recently, the local government of
Valenzuela provided a free tuition fee collegiate education in Pamantasan ng
Lungsod ng Valenzuela, which gives an opportunity for the students to study
freely. They also constructed 3s buildings in every barangay which stands for
“Simple, Speed, and Service”.It serves as a little city hall of every barangay
where public services are provided.

2. Being aware of the taxing powers allocated to LGUs, it seems that LGUs may
not have a reason why they cannot raise an adequate financial resources to support
their various programs to help uplift the socio-economic conditions of their
constituents. Yet, in reality, it is a bitter irony that the promise of a better quality of
life is still very far from reality. In your own opinion, what do you think are the
constraints for LGUs to maximize the use of their taxing powers? In your own view,
what sensible solutions could you suggest to minimize these constraints?
-LGUs are hindered by the poverty prevalent in their area to maximize the
use of their taxing powers. The status of the community is somehow one of the
things needed to be considered by the LGUs in imposing taxes. The capability of
the taxpayers in paying taxes is one factor. In my own point of view, these
constraints can be minimize by eliminating first the poverty in the area by
decreasing the unemployment rate. One of the major cause of poverty is the
unemployment of one or more of the members in every family. Looking at the
groundwork, providing jobs to some jobless who are still capable is the solution I
could suggest.

3. Make a rough but valid assessment of the status and prospects with regards
to the financial stability and sustainability of your own LGU (maybe your own
barangay or municipality). Make an inventory of all possible sources of income both
existing and those that are not yet existing but could be develop as a possible source
of income in the future. Obviously, you’re ordinary human being, are not blessed
equally with resources. Given these disparities, do you think there is a need for the
national government to continue the implementation of its decentralization policy
which entails decentralization of finances? Why or why not?
-Considering my resources, I think there is a need for the national
government to continue the implementation of its decentralization policy. The
financial stability of my LGU is still enough to assist the needs of its constituents.
There are also possible sources of income which the LGU use for its finances and
expenses, such as the taxes it gets from the citizens, fees and charges. These
resources are needed to be used for the development of the community.
Therefore, the LGU should have the power to use these resources for the
development and management of its own community. If the administration is
centralized to the national government, the LGU could not perform at its best
since it only follows the order from the national government.

4. Try to interview one taxpayer. What is his/her opinion regarding the payment of
taxes? If you were the local chief executive, what are the implications of his/her
opinion in your administration?

-According to him, “Paying taxes is essential for the improvement of a city.

Taxes is one of the main source of revenue of a municipality. Facilities and
services provided by the city are supported by the taxes. These taxes we’re
paying are also used for our own good. In a circular cycle, taxpayers provide
taxes to the government which in turn, the government use these taxes to
provide services to its constituents”. As a local chief executive, his opinion will
invigorate us to provide more beneficial services and facilities for the
improvement of the community..

5. Give one sensible and workable program/project or any activity as a possible

source of revenue in your own barangay. How could this become operational and
sustainable? Present the details.
-Collect non-biodegradable things such as water bottles, plastics, tin cans
and etc. and convert it to something useful. Plastics can be converted into chairs,
accessories, bags, etc. which could be sold for an appropriate price. Aside from
the fact that it helps in reducing non-biodegradable items by recycling, it also
helps in generating profit. These plastics can be collected by placing large boxes
in different areas of the barangay which will serve as the container of the
plastics. Instead of throwing these plastics anywhere, it will be more useful to
place it in the box. Then, these will be collected by the barangay workers to
convert it into useful things that can be sold.
SELF TEST 2
1. Distinguish the primary objective of the following
a) Taxation
- the primary objective of taxation is to gain revenue for the purpose of
supporting government needs.

b) Collection of charges
-the primary objective is to serve as payment for certain services and/or
consumption, or use of goods and services created and/or sold by the LGUs.

c) Imposition of fees
- the primary objective of imposing fees is to regulate and maintain
public order.

2. In your municipality, what are the top three resources of revenues? Can you
cite as many constraints as possible in the revenue collection performance of
your LGU? What collection enhancement measures could you suggest to
improve the revenue generation of your own LGU?
-The top 3 resources of revenue in my municipality are taxes, fees, and
charges. The capability of the taxpayers limits the taxes to be collected.
Fines and fees are somehow infrequent because violations does not always
occur. Rentals and charges for the use of public property and resources
within local jurisdictions also does not always happen. I suggest that LGUs
should encourage entrepreneurs to establish business entities in their place
so that they can gain revenue from its operation and establishment.

3. How can the fifth or sixth income class municipalities increase the tax revenue
collections considering the limited tax base in these areas?
-They should increase the tax rate or percentage in order for them to
increase their tax revenue collection. Since tax base is the factor of tax due
that does not depend on the LGU, they should work on the factor that they
can control which is the tax rate. Increasing the tax rate will also increase
the tax due.

4. Is the central grant allotment system synonymous to IRA? Considering the

“substitutive” effect or the complete reliance of some LGU to their IRA thereby
dampening their enthusiasm to raise their own revenues, what should be done
to overcome this undesirable effect?
-Central grant allotment system is not synonymous to IRA because
central grant allocation system is the system of effecting financial transfers
from national or central government to sub-national bodies or LGU, while
the IRA is the portion of the internal revenue collection of the national
government which is given as a grant to LGUs. The national government
should give incentives to the LGUs that gain higher revenue. This could
motivate them to make ways to raise their own revenue.

5. Are you in favor of the horizontal criteria being used in determining the IRA
share of specific LGUs? Why or why not? Aside from population, land are and
equal sharing, can you propose some other criteria for a more equitable sharing
of the IRA?
-Yes, I am in favor of the horizontal criteria because in this way, provinces,
municipalities, and cities get the right portion of income needed by a specific
LGU considering its population and land. If the sharing of IRA is equal for every
province, city, and municipality, the allocation would be inappropriate, because
a certain portion of IRA might be insufficient for some area. I propose that the
 expenditures for the infrastructures, programs, etc. of a LGU should be one of
the criteria in determining the IRA share of specific LGU. The income should be
use for the expenditures expensed for the improvement of the community.

6. Basing the illustrative example from the module, compute for the IRA of your
municipality.

LGU Percentage Share Total Vertical Allocation

Provinces 74.39 x 23% PhP17.110B

Cities 74.39 x 23% PhP17.110B

Municipalities 74.39 x 34% PhP25.293B

Barangays 74.39 x 20% PhP14.870B

Criteria Weight Provinces Cities Municipalities

Population 50% Php8.555 Php8.555 Php12.647

Land Area 25% Php4.278 Php4.278 Php6.323

Equal Sharing 25% Php4.278 Php4.278 Php6.323

Total 100% Php17.110 Php17.110 Php25.293

Criteria Municipality Province

Population 575,356 11,855,975

Land Area 45.75 km² 613.9 km²

Equal Sharing 1 13

Population Criterion:
575,356
= 0.048528779 0.048528779 x 12.647 = 0.6137 or approx. 613,700.00
11,855,975

Land Area Criterion:

45.75
= 0.074523538 0.074523538 x 6.323 = 0.4712 or approx. 471,200.00
613.9
Equal Sharing:
1
=0.076923076 0.076923076 x 6.323 = 0.4864 or approx. 486,400.00
13

Total IRA Share = 0.6137 + 0.4712 + 0.4864

= 1.5713 or approximately PhP 1,571,300.00

7. If you were the local chief executive how will you address the following
issues:
 In places where political conflict between the Local Chief Executive
(executive branch) and the Sanggunian (legislative branch) exists, the
passage of an appropriation ordinance or budget is normally delayed.
-The political conflict should be disregarded, especially when it
causes disruption in the services and works needed to be done. The
priority of a public worker is to serve the people, it should not be
delayed or disrupted just because of the unprofessional acts of the two
parties.

 The budget process is hampered by non-submission of supporting

documents by concerned offices or officers on time.
-As a local chief executive, I will lecture the officers who are liable
for it. Their reason should be valid to cause hindrance to an important
process.

 Failure to implement or complete projects as programmed.

-it is okay if the reason of the failure of the implementation of
projects is a sudden change in any factor of the program. It is not
acceptable if the reason of its failure is the lack of preparation.

 Lack of awareness by LGUs of available non-traditional sources of

revenues.
-The LGUs should be informed about the available non-traditional
sources of revenue.
 Low capacity of LGUs for development planning.
-One of the job of a LGU is to plan for the development of its
community. It is important that the LGU is capable in making sensible
plans for its development.