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Unformatted text preview: Only twenty percent of the annual
internal revenue is used for development projects as mandated in the LGC. 3.6 Conclusions
The assessment of revenue generation over the years since decentralization shows
poor performnace in the generation of revenue of the City. The City receives only 8 percent
of its total revenue from taxes, and its public enterprise accounts run regular deficits. The
analysis clearly shows that the city is unlikely to continue providing services without being
extremely dependent on the central government and its agencies. Under declining IRA and
stagnant growth of real income from taxes and other sources, service delivery in Olongapo
could be severely hampered. A number of additional functions devolved to Olongapo Local Government under
the 1991 LGC do not have direct cost recovery mechanisms and are solely dependent on tax
revenues. The analysis reveals that local tax revenue has clearly failed to keep pace with new
responsibilities. Moreover, the center can only provide limited assistance through intergovernmental transfers. Increasing...
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- Winter '13