City to tighten belt throughout Duterte's term

Subscribe Now December 07, 2011 at 11:02am

THE city cannot sustain its operations with the P360-million cut in its internal revenue allotment (IRA) thus it will have to cut back on unnecessary expenses throughout the remaining period of Davao City Mayor Sara Duterte’s term. Duterte, during her weekly press briefing at her office Monday morning, said the reduced IRA will take effect next year.

"Mas gipili nato na mag tipid kaysa mananggal ug mga empleyado (We chose belt-tightening than laying off of employees)," Duterte said.

Apart from belt-tightening measures, Duterte earlier announced that the city is thinking of increasing business taxes, as well as improve several city-owned enterprises, including the city's slaughter house in Ma-a, in order to generate more revenues.

Whatever amendments there will be on the tax code, however, will still have to be worked out by the City Council.

Next year, the city's proposed annual budget of P4.3 billion is P306 million less than this year's.

In the city’s statement of income and expenses for January to September this year, it showed that total spending reached P2.2 billion, P3 million less than it spent in the same period last year.

Total spending was P2,214,192,619.75 as compared to last year's P2,554,178,920.04.

Of this year's gross income of P3,583,257,621.08, P646,894,037.85 was spent for maintenance and other operating expenses (MOOE).

The MOOE was further broken down as P441,402,680.25 for the salaries and wages of regular employees of the City Hall; P221,475,433.84 for other compensation; P62,749,203.52 for personnel benefits contribution; and P21,266,720.24 for other personnel benefits.

Salaries and wages for regular employees was down P20 million to just P377,316,443.20.

A total of P11,063,346.13 has been spent by the city for communication expenses compared to last year's P12,217,960.69.

In terms of repair and maintenance expenditure, the city has spent a total of P46,327,353.72 compared to last year's P110,089,537.73.


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