1. Local Taxes and Fees
Local government units (LGU) are given authority to levy their own taxes, fees and other sources of revenues, consistent with the basic policies in the Local Government Code.
2. Internal Revenue Allotment (IRA)
All or nearly all of the revenue that a local government has to spend comes from their IRA. Typically for municipalities and many cities, the IRA accounts for 90% of total revenues. Few cities and municipalities have more sources of local revenues, their IRA ranges from 50% to 70% of their total budget.
3. Grants, Loans
Under the Local Government Code, LGUs in the Philippines were also authorized to seek grants and contract loans, credits, and other forms of indebtedness with any domestic private bank and other lending institutions. Borrowed funds can be used to finance the construction, installation, improvement, expansion, operation, or maintenance of public facilities, infrastructure facilities, housing projects, the acquisition of real property, and the implementation of other capital investment projects.
The Internal Revenue Allotment, which is the biggest source of revenue of almost all local government units, cannot keep up with their increasing needs. The LGUs need to intensify their local revenue sources to fill-in the budget gap.
Most common local revenue sources of the LGUs are the Local Taxes, Licenses and Fees (business and real property) and their local economic enterprises - most common are Public Markets, Bus Terminals, and Cemeteries.
In the Municipality of Libacao, Aklan, what do you think is the best possible source of local revenue aside from the those stated above?