Revenue generation, collection efficiency, and fiscal sustainability: Evidence from a Philippine municipality
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Author(s)Glorina C. DamongLink to ORCID Index: https://orcid.org/0000-0002-9942-9530
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DOIhttp://dx.doi.org/10.21511/pmf.15(1).2026.02
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Article InfoVolume 15 2026, Issue #1, pp. 14–26
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Creative Commons Attribution 4.0 International License
Type of the article: Research Article
Abstract
Sustainable local revenue generation is fundamental for fiscal sustainability and effective service delivery within decentralized governance systems. This study investigates revenue trends, collection efficiency, the implementation of revenue-generation strategies, and ongoing challenges influencing fiscal sustainability in the municipality of La Trinidad, Benguet, the Philippines. An explanatory sequential mixed-methods design was employed. Quantitative data were sourced from municipal records spanning 2014–2023 and surveys of 301 taxpayers and 24 revenue implementers. Qualitative insights were gathered through in-depth interviews with 10 key informants. The findings indicate a sustained increase in total municipal revenue, from PHP 278 million in 2014 to PHP 690 million in 2023, with locally sourced revenues comprising 45% of the total. Collection efficiency consistently surpassed annual targets, reflecting robust administrative performance. Nevertheless, the implementation of revenue-generation strategies was moderate. One-stop-shop systems and information campaigns were widely adopted, whereas electronic payment systems and enforcement measures, particularly property auctions, were implemented only minimally. Persistent challenges include unregistered businesses, inadequate monitoring of delinquencies, taxpayer resistance to reassessments, and institutional constraints in digital revenue administration. The results demonstrate that high collection efficiency may coexist with underutilized revenue measures and lenient enforcement, thereby constraining the full realization of revenue potential. This study contributes to the literature by underscoring the need to evaluate fiscal sustainability beyond target-based efficiency metrics and by highlighting the importance of institutional capacity, enforcement practices, and digital readiness in enhancing local revenue mobilization. These insights are pertinent for local governments in developing countries aiming to strengthen fiscal resilience within decentralized systems.
Acknowledgment
This study is made possible with the assistance of the local government of La Trinidad, Benguet, and the Commission on Higher Education (CHED), which provided the stipend. Acknowledgement is likewise extended to the LGU implementers and taxpayers for the critical data and their time.
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JEL Classification (Paper profile tab)H21, H71
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References46
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Tables2
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Figures1
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- Figure 1. Revenue trend
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- Table A1. Implementation of the revenue generation strategies
- Table B1. Seriousness of the challenges in revenue generation
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New trends and directions in local government finance research: A bibliometric analysis
Darmawati ,
Elis Mediawati ,
Syarifuddin Rasyid
doi: http://dx.doi.org/10.21511/pmf.13(1).2024.11
Public and Municipal Finance Volume 13, 2024 Issue #1 pp. 137-149 Views: 2235 Downloads: 1192 TO CITE АНОТАЦІЯLocal government finance has a critical impact on regional sustainability and governance. This study seeks to conduct comprehensive analyses of evolving trends and future directions in municipal finance research. It aims to address the insufficient longitudinal studies and fragmented understanding of how municipal finance practices and policies evolve by providing systematic evidence on dynamic trends and potential future trajectories. The study employed bibliometric analysis using Scopus and Google Scholar databases and Publish or Perish (PoP) software to analyze literature dynamics and associated topics and research trends and improve understanding of local government financial research. The results show a strong focus on local governance. Key themes included transparency, accountability, and financial sustainability, highlighting the critical need for good governance and fiscal prudence. The promising directions are technology (e-government) and comprehensive actions on the economic side through public-private partnerships and financial sustainability. Critical themes are fiscal stress, budgeting, and local government finance. However, new trends in sustainability, public-private partnerships, financial resilience, municipal bonds, and land finance are emerging as significant research areas. It highlights the field’s adaptability to evolving social and economic conditions. Through a thorough synthesis of these insights, stakeholders are better positioned to gain a deeper understanding of the current landscape of local government finance studies and their broader implications within a constantly changing global environment.
Acknowledgments
The authors would like to express their sincere gratitude to the Dean of the Faculty of Economics and Business, Hasanuddin University, for their invaluable support and assistance in this research. Their unwavering commitment to advancing academic research and community service has been the key to completing this study.
