Davao City has retained its position as one of the wealthiest local government units in the Philippines, according to the Commission on Audit’s (COA) 2023 financial report. The city ranked 9th in assets and equity, with total assets growing to PHP 32.9 billion, up from PHP 29.7 billion in 2022. Net equity also increased to PHP 24.9 billion, reflecting strong fiscal health.
What sets Davao City apart is its continued debt-free status. Despite significant growth in assets, the city has managed to fund development projects without relying on loans. This financial discipline underscores Davao’s ability to invest in crucial areas like infrastructure, education, healthcare, and disaster preparedness while maintaining a sustainable budget.
Local Revenue Generation Powers City’s Growth
Davao City’s robust financial performance is also driven by its exceptional local revenue generation. In 2023, the city was recognized by the Department of Finance’s Bureau of Local Government Finance (DOF-BLGF) as one of the top performers in local source revenues (LSR). With PHP 6.67 billion in LSR, Davao led all cities outside Metro Manila, reinforcing its role as an economic powerhouse in Mindanao.
The city also ranked first in Region 11 for the ratio of LSR to total operating income, a key indicator of efficient revenue collection. The business community’s strong tax compliance, along with proactive governance, has contributed to Davao’s financial stability, ensuring the funding of priority public services.
Sustained Growth Fuels Key Public Services
Thanks to its growing assets and revenues, Davao City has been able to prioritize funding for critical sectors such as social welfare, healthcare, disaster risk reduction, and agriculture. The city’s ability to deliver essential services without incurring debt is a testament to its prudent fiscal management, offering a model of financial stability for other local government units in the country.
