Friday, July 11, 2014

Revisiting Basey' Fiscal Administration




Basey’ total income from various sources from 2010 to 2012, are hereunder presented. For CY 2012 total income increased by 16.23% from 2011; while CY 2011 income decreased by 1.41% from 2010.

Income Sources
2012
2011
2010
IRA
96,636,146.00
99,599,537.41
92,077,738.00
Other Income
23,191,900.98
6,502,527.03
238,763.91
Business Income
2,786,665.80
178,363.80
363,527.94
Local Income
1,575,521.54
1,089,388.93
1,102,932.41
Permit/Licences
900,831.01
439,602.10
535,210.80
Service Income
627,089.95
350,660.70
429,977.40
Grants/Donations


14,959,125.74
Total
125,718,155.28
108,160,079.97
109,707,276.20

The bulk of the municipality’s income comes from Internal Revenue Allotment (IRA). Other income comes from Other Income (Donations/Grants); Business Income (Markets, Slaughterhouse, Rent); Local Income (Real Property Tax, Special Education Tax); and Service Income (Clearance Fees, Garbage, Inspection Fees, Medical/Dental Fees).

Total Appropriations for CY 2012 amounted to P121,097,768.07; for CY 2011 it was P103,404,122.13; and for CY 2010 it was P98,721,637.60. Like the budget of the national government, the law on local budgets is clear: No money can be paid out of the local treasury without an appropriation ordinance or law passed by the Local Sanggunian.

Budget preparation normally begins after the LGUs receive from the Department of Budget and Management (DBM) a circular advising them of their IRA allotments. This usually happens on June 15 of every year or earlier. The Budget call follows: The Mayor asks the heads of various offices and departments to submit their proposals. The proposals find their way to the finance committee (composed of Treasurer, Budget Officer and Planning and Development Officer), which then comes up with a consolidated budget due for submission to the Mayor for review on or before July 15 of every year. On October 16 each year, the Mayor presents for legislation the executive budget to the Sanggunian or the local lawmaking body. Finally, the enactment process follows by the Sanggunian. The law mandates the Sanggunian to enact an appropriation ordinance not later than December 31. The Mayor subsequently approves or vetoes the ordinance.

Expenditures incurred by the municipality from 2010 to 2012 are presented below. Expenditures incurred from current appropriations (2012) amounted to P100,530,383.35. There was an increase of P15,041,053.74 or 17.59% over that of CY 2011. On the other hand, expenditures for CY 2011 increased by 4.22% over CY 2010.

Function/
Program
2012
2011
2010
General Public Services
55,199,230.15
50,823,724.86
47,408,295.58
Health Services
-
8,947,408.87
7,168,145.67
Social Services
14,594.008.17
5,218,292.05
4,518,064.72
Economic Services
9,740,443.73
10,074,308.90
9,292,396.94
Other Purposes
20,996,701.30
10,425,594.93
  13,642,242.86                   
Total
100,530,383.35
85,489,329.61
82,029,145.77


Source: COA Annual Audit Report