24/08/2025
DAVAO CITY:
A Beacon of Economic Prosperity and Fiscal Excellence
Davao City has emerged as a leading economic powerhouse in the Philippines, leveraging its substantial National Tax Allotment (NTA, formerly Internal Revenue Allotment) over the past nine years (2017–2025) to drive growth and prosperity. With an NTA rising from ₱4.17 billion in 2017 to a projected ₱10.12 billion in 2026—the highest among all local government units (LGUs)—Davao has consistently ranked at the forefront, surpassing Quezon City since 2022 to claim the top spot.
This remarkable trajectory, fueled by the 2018 Mandanas-Garcia Supreme Court ruling that expanded NTA shares, underscores Davao’s unique advantage in the allocation formula, driven by its vast 2,444-square-kilometer land area and a population exceeding 1.8 million.
The city’s economic potential is evident in its robust performance metrics. Davao’s GDP reached ₱532.54 billion in 2023, with a 7.5% growth rate, making it the fastest-growing economy in the Davao Region, which surpassed ₱1 trillion in output.
Key sectors, including services (60.9% of GDP), agriculture, and investments (₱27.13 billion in 2024), thrive alongside low inflation (4.0%) and high employment (96.9%).
The region’s poverty incidence dropped from 23.5% in 2015 to 16.8% in 2021, reflecting inclusive growth through infrastructure development and support for micro, small, and medium enterprises (MSMEs).
Davao’s prosperity is anchored in sound fiscal management. The city has diversified its revenue streams, leading non-NCR cities in local collections for 2022–2023, reducing reliance on NTA while efficiently deploying funds—₱8.2 billion was allocated to transformative projects from 2016–2022.
Its 2025 budget of ₱14.3 billion, a 12% increase from the previous year, prioritizes sustainable initiatives like peace and order (₱2 billion), demonstrating prudent planning and high utilization efficiency.
Even during the COVID-19 pandemic, Davao maintained fiscal resilience, redirecting funds to health and emergency response without compromising long-term development goals.
In conclusion, Davao City’s strategic use of substantial NTA inflows, coupled with strong economic metrics and diversified revenue streams, firmly establishes its robust economic potential and prosperous status as a leading urban center in the Philippines. As it continues to harness these resources, Davao stands as a model of fiscal excellence and sustainable development, not only for Mindanao but for the entire nation.
CTTO: Mr. Butch Baliao
