Other purposes was allocated some PhP2.32 billion. This
was followed by economic services with PhP1.76 billion,
and health, nutrition and population control with
PhP1.23 billion. Compared to 2006 expenditures, the
2008 expenses was PhP1.30 billion higher. Most of the
expense items increased except for labor and employment,
housing and community development, and other purposes.
On the strategy to tap other fund sources, several
programs and projects were financed partly through
foreign funds in the form of loans or entirely through
grants. Among the foreign assisted projects funded by
loans were the Second Agrarian Reform Communities
Development Project (ARCDP 2 –WB), the Infrastructure
for Rural Productivity Enhancement Sector Project (InFRES
- ADB) and the Rural Road Network Development Project (RRNDP
– JBICO).
Grant assisted projects from the Spanish government
through its international aid agency (AECID) were Poder
y Prosperidad de la Comunidad (DSWD), Sustainable
Management of Coastal Resources (SUMACORE - BFAR),
Strengthening Agro-Industrial Sector for Bicol and
Caraga (SAISBC - DA), Agriculture, Social Support and
Environment Facility (ASSEF - NEDA), Improvement of the
Quality of Education (IQPE - DepEd), and Strengthening
Local Governments in the Philippines (SLGP - DILG).
Another grant funded project was Restoring Food Security
in Typhoon Affected Areas funded by FAO and implemented
by DA.
International NGOs operating in Bicol which provided a
wide range of economic and social projects included
Manos Unidos, Accion Contra el Hambre, Intervida,
Fundacion CODESPA, IPADE, Cruz Roja Espanola, Humanismo
y Democracia and Plan International.
Some local government units financed their projects
through borrowings, bond flotation or through the build,
operate and transfer (BOT) scheme.
Other identified projects like large scale mining were
financed through the private sector with capital
infusion from foreign firms.
Tax
Collection
Tax is the major source of
government revenue that finances the implementation of
programs and projects. The Bureau of Internal Revenue (BIR)
handles tax collection in the country.
Actual tax collection in CY 2008 increased by 1.64
percent (Table 30.3) compared in CY 2007. However, tax
collection compared to the target was short by 13
percent. Among the region’s revenue districts, only
Virac met its target with the highest collection
efficiency of 121 percent. All others were not able to
meet their respective targets. Decrease in collection
was felt in Iriga City, Legazpi City, Virac and Masbate
City.
The identified factors that contributed to the decline
in collection were the implementation of the exemption
of minimum wage earners from taxation and the increase
of personal and additional exemption under RA 9504,
completion of the projects funded from calamity fund
that reduced the collection of contractors’ taxes, very
high goal allocation set for the region, change in the
venue where tax remittance advice were paid and closure
of some business establishments.
