Tuesday, February 10, 2009 [ sunstar.com.ph ]
By Rimaliza Opiña
THE remittance of the Baguio Export Processing Zone to the city of Baguio showed a significant drop in the third quarter of this year.
City Accountant Antonio Tabin blamed the world-wide recession for the decline.
Finance officers of the City Government fear that if this trend continues, this would impact negatively into the city's 2009 executive budget.
Philippine Economic Zone Authority (Peza), one of the city's largest contributors of income to the city in terms of shares from the National Government only remitted P7 million for the third quarter of last year. This amount forms part of the P89-million projected shares for 2008.
For the first and second quarters, Peza remitted an average of P40 million.
If remittances continue to drop, Tabin said there might be a budget deficit in the 2009 budget. The Local Finance Committee (LFC) projects a P60-million remittance for 2009.
As a remedy, the LFC has suggested for the approval of a "conservative budget" for this year.
The City Council is proposing to adjust the proposed executive budget of P950,140,000 to P1 billion.
The problem, however, is the determination of which items in the proposed budget can be set aside in the meantime. He said additional allocations may be done by way of passing a supplement budget instead.
Tabin said the LFC has also suggested for postponement of plans of increasing local taxes to increase income. With the effects of the recession now felt in the country, he said this year is not the best time to increase taxes.
Tax reforms proposed by the executive branch include increasing fees for the city market, garbage, sewer and other services.
The last increase in taxes was in 1992. Remittance for 2007 amounted to P156,307,000 or P67-million less for this year's expected share from the Peza.
In the proposed budget, the estimated income will come from the beginning balance of P100,000,000; local taxes amounting to P257,800,000; permits and licenses – P14,800,000; service income – P40,150,000; business income – P59,890,000; other income of P154,500,00 and Internal Revenue Allotment – P323,000,000.
The proposed priority developments for 2009 is the rehabilitation of the Baguio Convention Center with a proposed budget of P12 million; development of the City Market, P35 million; and the subsidy for the operations of Burnham Park, P12 million.
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