It is projected that Iligan City’s LSI growth trend will continue in the next few years due to the rising retail industry and the revival of National Steel Corporation.
Iligan City’s locally-sourced income (LSI) is not the biggest among that of other cities in Mindanao, but the rate it is growing is undeniably commendable. Iligan, dubbed as the Industrial City of the South, achieved an LSI growth rate of 34% in 2016, 12% higher than that of the next highest, General Santos City which LSI growth rate marked 22%. The drastic rise is evident in the P152-million increase of LSI from 2014 making it more than P595-million in 2016.
Locally-sourced income is the opposite of Internal Revenue Allotment which is technically money coming from the national government. In fairness, Iligan’s IRA-dependency rate is still one of the biggest in Mindanao, a figure mostly viewed negatively. IRA-dependency reflects the city’s incapacity to be self-reliant, a figure showing IRA as the biggest chunk of the total income.
On the other hand, total income from a local source is considered a more reliable indicator of the economy and efficiency of local government units as compared to IRA. LSI is collected from tax revenues (business and real property tax) and non-tax revenues such as regulatory and service fees, receipts from economic enterprises, and other general income. Iligan City’s LSI in 2014 was about P442 million, and it went higher to about P553 million in 2015. By 2016, it was going near to P600 million.
Davao City remained the top earner among all cities in Mindanao in three consecutive years when it comes to local sources which were already more than P3 billion last 2016. Together with Cagayan de Oro’s P1.6 billion, Davao City is one of the two billionaire cities in Mindanao in terms of LSI.
It is projected that Iligan City’s LSI growth trend will continue in the next few years due to the rising retail industry and the revival of National Steel Corporation. Several factories are also opening in nearby areas such as the Ayala Coal Power Plant in Kauswagan, Lanao del Norte. It could have been possible that the transfer of airport to Laguindingan has resulted to the fast-growing economy of Iligan City.