HomeJPAIR Multidisciplinary Research Journalvol. 4 no. 1 (2010)

A Municipality’s Experience on Revenue Generation and Public Economic Enterprise Development

Maria Consuelo R. Del Castillo | Rey Dan G. Gayao

Discipline: Management, Government



The Local Government Code of 1991 has opened opportunities for local government units (LGUs) to generate more revenues beyond traditional sources like the Internal Revenue Allotment (IRA). This study focused one municipality in Bukidnon and its experience on revenue generation and economic enterprise development for 1996-2007. Initially, the study looked into the socio-economic profile of the municipality. It then surveyed successful experiences on revenue generation by other LGUs. The study’s analytical framework considers the LGU as operating within a market environment and the community. The 1991 Local Government Code acts as the major policy guide for LGU operations towards efficient and effective delivery of goods and services to the public. The study analyzed trends in the municipality’s revenue generation along traditional sources: Internal Revenue Allotment (IRA), real property tax (RPT), and other local taxes. It then examined trends in the LGU’s economic enterprises: waterworks, public market and slaughter house, and the heavy equipment unit. The focus group discussion among the enterprises’ stakeholders revealed a number of organizational factors which affected the enterprises’ operations.