AS anticipated, Dagupan’s Sanggunian Panlungsod (SP) questioned on Monday the P18-million increase in the city’s proposed P375-million budget for 2007, which was submitted by the mayor’s office the previous week.

The council raised doubts as to where the funding will be sourced considering no new ordinances for enhancing revenue collection were passed this year.

City treasurer Romelita Alcantara, appearing before the SP’s weekly meeting, defended the    proposed budget saying the local government is confident about a higher tax collection next year with the implementation of the 25% tax rate increase approved in 2005 and through intensified collection efforts.

Alcantara noted that the tax rate increase was not immediately implemented this year.

Most big businesses hastily paid as early as January, thus were not charged the new tax   rates.

The city treasurer pointed out that as of end-September this year, even without the tax rate increase yet, the government has already surpassed its revenue collection target of P80 million for the period by P4 million.

She cited good income from business taxes, which offset poor collection from the scantily-occupied Malimgas market and fishery rentals.

“Kahit may shortfall tayo sa Malimgas at fishery rentals, naba-balance naman ito ng ibang source of revenues tulad ng collection natin sa taxes, kaya posibleng magkaroon tayo ng surplus before the yearends,” said Alcantara.

Cost-cutting

However, Councilor Michael Fernandez doubted Alcantara’s projection and probed into the cost-cutting measures being undertaken by the city government.

Fernandez said, “Hindi kaya maging over optimistic tayo next year to be able to meet the projected collection?” adding, “Kung talagang sapat yung pera natin, bakit nag cost-cutting tayo?”

The proposed budget for each of the city hall’s department was cut down by an average of 20% from this year.

Alcantara explained the cost cutting is aimed at regulating the city hall’s operating expenses, which currently eats up a huge chunk of the total budget.

Alcantara said it is imperative to increase the budget every year to improve the delivery of services to the people as well as to put pressure on the government’s program of improving revenue collection.

Meanwhile, councilor Alex De Venecia called on Alcantara to draft a revenue collection target for 2007 that will realistically meet the proposed budget. — AQL

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