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UCU GS Research Journal
RESOURCE GENERATION LIMITATION OF LOCAL GOVERNMENT UNIT
OF MALASIQUI, PANGASINAN
CATHERINE E. MEJIA

A major concern of urban governance in the developing countries has been the financial
management and performance of local governments. This study aimed to have a deeper and
clearer understanding on the resource generation limitations of the Local Government Unit for
Malasique, for the years 2012, 2013 and 2014, it sought to determine: 1) the profile of the
Local Government Unit of Malasique, Pangasinan when classified as to: geographical location,
population, employment and revenue sources and income classification. 2) the resource
generation capacity of LGU of Malasique, Pangasinan for year 2012, 2013 and 2014; 3) the
overall tax collection efficiency of LGU Malasiqui, Pangasinan for year 2012, 2013 and 2014; and
proposed strategies to improve collection efficiency of LGU of Malasique.
The following are the salient findings of this study: Majority of the respondents are
engage in agricultural activities: farming, livestock and fishing. Some are engage in services in
the different industries in municipalities and nearby towns as government and private employees
working in Metro Manila and Baguio City. Also a number of respondents are working professionals.
Revenues for three consecutive years show positive results. Favorable net income trend depicts
good performance indicators as income is higher than expectations. Moreover, tax collection
exceeded expected collections for three years in a row that clearly shows a a very good and tax
efficient municipality.
The following are the conclusions drawn from the findings of this study: Malasique
is highly populated local government unit which is indicative of its high growth rate; The
municipality was able to comply with the requirements of a first class municipality embodied
in Executive Order No. 249; Three consecutive years Income Statement show that the LGU is
capable to sustaining its expenses and meet its obligations. The amount of income reflected
in the Financial Statements clearly depicts its sustainable and good collection performance.
The Reports of Revenue and Receipts for the fiscal years 2012, 2013 and 2014 indicate that
LGU Malasiqui is efficient in raising its own revenues through taxes and other operating and
miscellaneous activities.
The following recommendations are forwarded: The LGU Malasiqui needs to improve its
income generating activities to sustain its fast growing populations’ needs; Maintain its first class
classification by augmenting its income as required in the Executive Order No.249; Encourage
more investors to be able to increase its resources to be able to provide efficient services to its
constituent’s; An Analysis and review of a local government’s revenue generation method should
be regularly undertaken to better understand its organizational capacity and its limitation to
perform under the fiscal decentralization policy as provided for in the LGC of 1991.
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