KAWIT, Cavite — The Municipality of Kawit, under the administration of Mayor Angelo Aguinaldo, failed to meet its projected revenue target for the fiscal year 2023, resulting in a shortfall of ₱249,405,328.16, according to the Commission on Audit (COA).

The gap, attributed to the inability of the Local Finance Committee (LFC) to properly determine reasonably collectible income, has impacted the town’s budget execution and implementation of planned projects and programs.

The COA report highlighted that only ₱636,827,247.33, or 71.86% of the ₱886,232,575.49 revenue target, was realized.

While collections from external sources slightly exceeded projections by ₱15,592,620.92, local collections underperformed, particularly in tax revenues, which fell short by ₱179,100,401.54.

“This recurring shortfall in collections was not addressed by the LFC, which did not consider previous trends in tax revenue collection. As a result, the municipality was deprived of much-needed funds for its constituents,” the report stated.

Five-Year Collection Decline

Over the past five years, the municipality has consistently failed to meet its revenue targets. The percentage of actual collections against budgeted income has declined from 82.12% in 2019 to 71.86% in 2023.

COA noted that a deeper analysis of trends in tax collections should be conducted to establish realistic income projections.

Budget Deficit Worsens

The report also revealed that Kawit ended 2023 with a budget deficit of ₱99,810,165.43.

Total expenditures reached ₱736,637,412.76, with personal services and operating expenses consuming the majority of funds.

COA noted lapses in the timely submission of tax assessments for newly constructed buildings in a Philippine Offshore Gaming Operator (POGO) area in Barangay Pulvorista.

Municipal officials assured compliance with COA’s recommendations and pledged to utilize data trends in preparing the 2024 budget to ensure more accurate income projections.

COA stressed the importance of addressing these financial challenges, noting that failing to improve revenue collection could further strain the municipality’s ability to deliver services and infrastructure projects.