The Baguio City economy’s healthy performance this year has led to the approval of a bigger budget for 2025, according to Baguio Mayor Benjamin Magalong.
Magalong said that business permit revenues have gone up in 2024 with the addition of at least 600 registered businesses issued permits and licenses, which has led to an estimated P220 million increase in city revenue from business permits and fees alone.
“We are looking forward to a higher GDP growth for the city in 2024, considering the fact that we have more MSMEs (micro, small and medium enterprises). We were able to issue more business permits,” said Magalong.
Magalong also said that with the reported full occupancy of licensed and accredited accommodations in Baguio, with at least 13,000 slots for accommodation across 900 establishments, the city is expecting a larger final tally of tourist arrivals when the numbers are computed.
With the city’s revenue going up, Magalong on Monday announced that he had cleared 2025’s budget which is now with the Department of Budget and Management for review.
The 2025 budget is an unprecedented P3.682-billion worth of funding, up by 9% from 2024’s P2.745 billion allocation.
The city’s local expenditure program (LEP) reflects an anticipated P1.185 billion worth of revenue from local taxes and local public enterprises, and a P1.665 billion worth of funding from “external sources,” which includes the expanded internal revenue allotment from national taxes, and Philippine Economic Zone Authority operations in the Baguio City Economic Zone.
While the LEP does not significantly raise the expected revenue from local taxes, Magalong says that the steady city economy would allow Baguio to support an increased budget.
