BAGUIO CITY April 21 – The city government admitted that it might not be able to collect more or less P480 million from its projected income for this year following a slump in the city’s economy due to the enhanced community quarantine.
Mayor Benjamin B. Magalong informed city legislators during the city legislative body’s regular session that based on the initial computations of the city’s finance officers, the city stands to lose some P40 million monthly in projected income for the year due to the virtual stoppage of economic activities and livelihoods.
While the Luzonwide enhanced community quarantine will be lifted soon, he claimed the city’s economy will not be able to recover immediately as there will be a gradual opening of businesses limited to the essential ones, thus, it will not translate to the resumption of normal business activities.
The city chief executive pointed out that in case the inter-agency task force on the management of emerging and re-emerging infectious diseases will decided on the implementation of a modified enhanced community quarantine after April 30, 2020, the city government will also slowly open up on some essential sectors such as the transport, construction, food, among other essentials, with measures in place following the prescribed standards on physical distancing, mandatory wearing of masks, among others.
According to him, the city government will continue engaging the different sectors that were heavily impacted by the implementation of the enhanced community quarantine to get their inputs on acceptable guidelines to govern their operations during the post-quarantine transition period.
Magalong admitted that the impact of the enhanced community quarantine will not be felt in the remainder of the year but its negative implications will be realized by the city government next year as next year’s budget will depend on the city’s collections this year.
The city government is operating on an approved budget of P2.255 billion where approximately P1.4 billion will come from internally generated funds composed of business taxes, real property taxes, other fees and charges, among other sources of income to ensure the implementation of the programs, projects and activities included in the approved appropriation ordinance.
According to him, the city government will try to look into the possibility of re-opening some essential sectors depending on the outcome of the ongoing deliberations within the inter-agency task force thus it is important for the city to prepare governing guidelines for the implementation of a localized enhanced community quarantine that will not aggravate the situation but instead allow the heavily impacted sectors to slowly recover from the slump due to the fight against the dreaded Coronavirus Disease (COVID-19).
He called on the concerned sectors to understand the decision of the city government to implement a gradual return of the operation of some businesses so as not to ruin the gains that were achieved by the city during the enhanced community quarantine which could become part of the new normal.
By Dexter A. See