Makati City’s Impressive Revenue Growth
Makati City has reached a significant milestone, collecting P14.24 billion in revenue by April. This figure represents 82 percent of its local revenue goal for the year. Including external sources, the total revenue collection has hit P15 billion, demonstrating the city’s robust financial health and rapid economic growth through digital innovations.
Mayor Abby Binay highlighted that the city’s success stems from embracing technology to speed up business permit processing. “The city continues to enjoy a stable revenue base for the past nine years owing, in large part, to our willingness to harness technology to make our transactions with the business sector more convenient, efficient, and transparent,” she said.
Driving Efficiency with Digital Solutions
The administration’s commitment to national standards, enforced by agencies like the Anti-Red Tape Authority and the Commission on Audit, has strengthened Makati’s position as a top investment hub. The city was recognized for full compliance with the Electronic Business One-Stop Shop (eBOSS), mandated by the Ease of Doing Business and Efficient Government Delivery Act.
With faster processing times, Makati registered 1,962 new businesses and renewed 35,019 permits within the first five months of the year. These new ventures brought in P28.25 billion in investment capital, while existing businesses reported gross sales exceeding P2.07 trillion. Local leaders noted that digital platforms such as the Makatizen Online Assessment and Payment Portal and the Makatizen Hub satellite office launched in 2021 have streamlined transactions and boosted compliance.
Sound Fiscal Management and Transparency
Makati has earned an unmodified audit opinion from the Commission on Audit for seven consecutive years, a testament to its strict adherence to accounting standards. Following the latest COA exit conference, officials expressed confidence that the city will secure the same opinion in 2024. Achieving this would qualify the city’s Accounting Department for the Platinum Award from the Association of Government Accountants of the Philippines for eight straight years.
Robust Revenue Sources and Economic Performance
Between January and April, Makati collected P8.73 billion in business taxes, accounting for 61.32 percent of local revenue. This marked a 7 percent increase compared to the same period last year. Other income streams include P4.89 billion from Real Property Tax, P515.28 million from Fees and Charges, and P93.72 million from Economic Enterprises. Additionally, interest income and shares from national and economic zones contributed to the total revenue.
Consistent Growth and Low Poverty Rates
Makati’s revenue collections have steadily risen from P15.08 billion in 2016 to over P24 billion projected in 2024. The Department of Finance ranked the city first for sustaining fiscal autonomy via local revenues and for posting the highest per capita spending in fiscal years 2022 and 2023.
The city’s Gross Domestic Product grew by 6.3 percent in 2023, surpassing the national growth of 5.6 percent. This growth supports the city’s social programs and new infrastructure projects aimed at improving quality of life and maintaining Makati’s status as a premier investment destination.
Mayor Binay shared, “In 2023, Makati’s poverty incidence stood at zero point six percent (0.6 percent), the lowest it has ever been, and among the lowest among major cities. Its Human Development Index or HDI, which measures the quality of life based on health, education, and standard of living, also rose to zero point nine zero three (0.903).”
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