“The 11th hour is the final moment when change is possible,” he said, so Baguio residents need to help now that “our own survival is challenged and the economy brought to its knees by this disease.”The city government has reduced its proposed 2021 budget to P1.9 billion from this year’s P2.3 billion due to the economic slowdown, expecting a drastic slide in 2021 taxes that may affect projects.
But fiscal projections for next year showed a potential increase in realty taxes to P151 million from this year’s P100 million that may help replenish the city’s coffers, he said. The city government will enforce a 70-percent hike in realty taxes in 2021 and a full increase by 2022. To perk up the economy and reduce Baguio’s reliance on its Internal Revenue Allotment, Magalong last week suggested acquiring more lands “to entice potential investors for income-generating ventures.” The IRA is the local government share from all taxes collected by the national government, which could also be affected by the recession.