LGU and GovernanceKawit Revenue Shortfall Hits P249 Million, COA Reports

Kawit Revenue Shortfall Hits P249 Million, COA Reports

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KAWIT, Cavite — The Municipality of Kawit, under 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 significantly 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.

LFC’s Response and Plans
In response to the findings, the municipal government committed to implementing measures to improve revenue collection. The LFC has initiated efforts to modernize its Treasury System by partnering with a supplier for a cloud-based e-Governance Smart LGU System.

Moreover, the Municipal Assessor’s Office has begun revising real property assessments, which are expected to boost revenues. However, the 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.


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