27 December 2005
Confession time: ‘We over-estimated income targets
AN official of the city government admitted that the projected income of the city this year at P350 million was over-estimated, spawning some P10 to P14 million shortfall in collection at the end of the year.
City Treasurer Romelita Alcantara told the city council there was no inefficiency in collection of taxes but they had simply over-projected the income of the city, particularly from stall rentals in the new three-storey Malimgas Public Market.
She said the bulk of the collection shortfall was registered at the public market when occupants of the second floor, reserved for dry goods, surrendered their stalls because of poor sales so the city lost incomes from rentals due them.
“We presumed that all things will go fine in the public market and that all stalls would be occupied. But it was not.” Alcantara said. Stallholders said they surrendered their stalls to prevent their continuous losses because the second floor of the public market, although fully air-conditioned, is hardly drawing in buyers.
Part of the reason may be because the new public market, reputed to be the most modern of its kind in the Philippines today, is surrounded by commercial malls that offer much lower prices for a wide range of products to choose from.
The third floor of the public market, reserved for car parking, has not been earning either.
The city council invited Alcantara to its session to shed light on the state of finances of the city government amid suspicion the city might now be incurring budge deficit as revenue collection targets were not met.
Alcantara denied any budget deficit because the city did not spend more than it could earn. She insisted that the only problem is the shortfall in collection. She added that because the city government no longer allows ambulant vending, it lost from P4 to P5 million in income from cash tickets.
The city also over-projected its income from the enforcement of fishery code when it targeted a revenue of P14.5 million, when, by the end of November, only P3 million has so far been collected.
City Treasurer Romelita Alcantara told the city council there was no inefficiency in collection of taxes but they had simply over-projected the income of the city, particularly from stall rentals in the new three-storey Malimgas Public Market.
She said the bulk of the collection shortfall was registered at the public market when occupants of the second floor, reserved for dry goods, surrendered their stalls because of poor sales so the city lost incomes from rentals due them.
“We presumed that all things will go fine in the public market and that all stalls would be occupied. But it was not.” Alcantara said. Stallholders said they surrendered their stalls to prevent their continuous losses because the second floor of the public market, although fully air-conditioned, is hardly drawing in buyers.
Part of the reason may be because the new public market, reputed to be the most modern of its kind in the Philippines today, is surrounded by commercial malls that offer much lower prices for a wide range of products to choose from.
The third floor of the public market, reserved for car parking, has not been earning either.
The city council invited Alcantara to its session to shed light on the state of finances of the city government amid suspicion the city might now be incurring budge deficit as revenue collection targets were not met.
Alcantara denied any budget deficit because the city did not spend more than it could earn. She insisted that the only problem is the shortfall in collection. She added that because the city government no longer allows ambulant vending, it lost from P4 to P5 million in income from cash tickets.
The city also over-projected its income from the enforcement of fishery code when it targeted a revenue of P14.5 million, when, by the end of November, only P3 million has so far been collected.
