Makati revenues at P15B as of April, 82% of year’s goal–Binay
Makati City has reached 82 percent of its revenue target from local sources for 2025, collecting P14.24 billion as of April, according to Mayor Abby Binay.
Including external sources, the city’s total collection has reached P15 billion.
The mayor attributed the city’s continued financial stability and economic growth to digital innovations adopted by her administration for faster processing of business permits.
“The city continues to enjoy a stable revenue base for the past nine years owing, in large part, to our willingness to harness technology to make our transactions with the business sector more convenient, efficient, and transparent,” Binay said in a statement on June 4.
The mayor also underscored the impact of her administration’s resolve to keep up with national standards and policies set by regulatory bodies such as the Anti-Red Tape Authority (Arta) and the Commission on Audit (COA).
Investment destination
“We have sustained Makati’s strength as a premier investment destination for both local and foreign investors by demonstrating our commitment to good governance and transparency,” she said.
Arta recently recognized Makati as an outstanding local government unit for being fully compliant with the electronic business one-stop shop, as mandated by the Ease of Doing Business and Efficient Government Delivery Act of 2018, or Republic Act No. 11032.
With faster turnaround time in the processing of business permit applications, both for new and renewal, Makati was able to register 1,962 new businesses and renew the permits of 35,019 existing businesses in the first five months of the year.
New businesses chalked up P28.25 billion in investment capital, while existing businesses reported over P2.07 trillion in gross sales.
Makati’s strict adherence to accounting and auditing standards has also earned an unmodified audit opinion, also known as an unqualified opinion, from COA on its annual financial statements for seven consecutive years.
With the recently concluded COA exit conference, Binay is confident that Makati will get an unmodified opinion for 2024. Subsequently, the city accounting department will be qualified to receive the Platinum Award conferred by the Association of Government Accountants of the Philippines on those that have earned its recognition as an “Outstanding Accounting Office” for eight consecutive years.
An unmodified audit opinion is a significant factor in the selection process, along with other criteria that include accuracy, timeliness, reliability and compliance with accounting rules and regulations.
Local tax collection
Digital platforms, such as the Makatizen Online Assessment and Payment Portal, and the Makatizen Hub satellite office launched in 2021 have also helped streamline business transactions and improve compliance, resulting in higher collection efficiency.
Based on the latest report from the Office of the City Treasurer, the city collected P8.73 billion in business taxes or 61.32 percent of the local revenue collection from January to April. It is also higher by 7 percent than business tax collection for the same period last year. Other locally sourced income consisted of P4.89 billion from real property tax, P515.28 million from fees and charges, and P93.72 million from economic enterprises.
The collection also includes interest income, P235.91 million; National Tax Allotment, P397.87 million; and share from economic zone, P129.60 million.
Under Binay, Makati has consistently exceeded its annual revenue targets, growing its annual revenue collection from P15.08 billion in 2016 to over P24 billion in 2024.
Makati has been ranked first among cities by the Department of Finance in sustaining its fiscal autonomy through local revenue sources and in posting the highest per capita spending for fiscal years 2022 and 2023.
Poverty, dev’t index
The country’s financial center also posted a 6.3-percent growth in gross domestic product (GDP) in 2023, outperforming the national GDP growth of 5.6 percent, already recognized as the fastest among major Asian economies.
The sustained growth has supported the city’s social programs and the completion of new infrastructure projects.
In 2023, Makati’s poverty incidence stood at 0.6 percent, the lowest on the city’s history and among the lowest among major cities.
Its human development index or HDI, which measures the quality of life of citizens based on the quality of health, education, and standard of living, also rose to 0.903.
The HDI goalposts, set by the United Nations Development Program, range from zero to one.
