ADB-financed Local Governance Reform Project to boost LGU revenue generation

Local governments’ revenue generation is expected to get a boost from a project financed by the Asian Development Bank (ADB) that is aimed at shoring real property tax collection.

The Local Governance Reform Project would help boost the revenue-collection capacity of local government units (LGUs) by funding initiatives to strengthen property valuation mechanisms, introducing new digital tools for accurate and transparent reporting, and updating property valuation assessments and tax maps.

The ADB and the Philippine government signed a $26.53-million loan for the project in July last year.

“Local governments are at the frontline of serving vulnerable communities, especially during these very challenging times. They are the catalysts for building a new economy while the national government does its utmost to address this global health emergency.

At both national and local levels, we need to optimize our revenue-generation powers and improve tax administration to raise necessary funds for our COVID-19 response efforts and economic recovery program. Even as we stretch resources to stimulate the economy, we must continuously build up our fiscal resilience,” said Finance Secretary Carlos Dominguez III at the first meeting of the newly formed Interagency Governing Board (IGB), who are implementing the project.

Last month, President Duterte issued Administrative Order (AO) No. 40, in which the IGB was established.

SOURCE: Inquirer