Tanudan budget use reaches 78.46%, but revenue collection drops; OPT-Kalinga recommends stronger collection drive

TANUDAN, Kalinga — The Municipality of Tanudan recorded 78.46 percent utilization of its 2025 annual budget, but its local source revenue (LSR) collection declined by 22.28 percent from the previous year, prompting the Office of the Provincial Treasurer (OPT)-Kalinga to recommend stronger revenue collection measures.

The findings were presented during the Local Treasury Operations Evaluation (LTOE) conducted by the OPT at the Tanudan Municipal Treasury Office (MTO) on September 24–25, 2026. The evaluation covered revenue collection, budget utilization, treasury operations and financial management.

Revenue collection down

Tanudan collected ₱1,544,328.51 in local source revenue in 2025, equivalent to 70.19 percent of its ₱2,200,321.30 target.

The amount was lower than the ₱2,124,682.38 collected in 2024, when the municipality achieved 92.47 percent collection efficiency against its ₱2,297,729 target.

The decline was particularly evident in Real Property Tax (RPT) collection.

Tanudan collected ₱1,023,844.74 in RPT in 2024, equivalent to 90.16 percent of its ₱1,135,607 target. In 2025, however, RPT collection dropped to ₱612,500.21, or 48.29 percent of the ₱1,268,493 target.

Other revenue sources performed better. Business Tax (BT) collection reached ₱629,354.75, meeting 100 percent of its target, while Fees and Charges (F&C) also reached 100 percent collection efficiency, with ₱302,473.55 collected against its target.

Following the evaluation, the OPT recommended that the MTO strengthen its revenue collection efforts, particularly for RPT, through taxpayer information and education campaigns, monitoring of delinquent accounts, field collection activities, and closer coordination with municipal offices and barangay officials.

The OPT also cited the need for the timely remittance of the shares of the Province of Kalinga and barangays from Sand and Gravel Tax collections in accordance with existing laws, rules and regulations.

78.46% of budget utilized

Despite the decline in local revenue collection, Tanudan utilized ₱146,260,923.20, or 78.46 percent, of its ₱186,415,331.03 approved annual budget in 2025.

The MTO itself recorded 84.83 percent utilization of its ₱7,531,578.42 approved budget.

Among the municipality's special-purpose funds, Aid to Barangays posted 100 percent utilization, with the entire ₱480,000 allocation spent.

The Local Disaster Risk Reduction and Management Fund (LDRRMF) recorded 74.09 percent utilization, with ₱6,459,246.25 spent from its ₱8,718,538.50 allocation.

The Local Development Fund (LDF), meanwhile, recorded only 6.92 percent utilization, with ₱646,911.32 spent from its ₱9.35-million allocation.

The LTOE also reviewed key treasury functions, including revenue collection and deposits, processing of disbursements, maintenance of treasury records and reports, accountable forms, and other related transactions.

The assessment found that the MTO had generally established and observed procedures for the proper management and accountability of public funds.

Agriculture, tourism offer economic opportunities

Beyond revenue collection, Tanudan has ongoing agriculture and tourism initiatives that could contribute to local economic activity.

In 2024, the 6.16-kilometer Banneng-Darulog-Bawac Farm-to-Market Road, a ₱146-million project under the Department of Agriculture's Philippine Rural Development Project, was inaugurated to improve access to production areas and help revive the municipality's coffee industry.

Tanudan also launched the Tawang Falls eco-tourism site in Sitio Cabugao, Barangay Pangol, in 2026. The municipal government said the site aims to promote sustainable tourism, protect the area and generate income for the local community.

These initiatives may create additional economic activity and opportunities for residents, although their eventual contribution to local revenue will depend on actual investments, businesses, tourism activity and other economic developments.

The LTOE forms part of the OPT's 2026 Revenue Generation Action Plan (RGAP) and its continuing technical supervision of local treasury offices.

Through the evaluation, the OPT assesses treasury operations, promotes compliance with applicable laws and regulations, and provides technical assistance to improve revenue generation, accountability and management of public funds.