The study presents the sources of revenues of LGUs and shows how these resources are apportioned to the different programs/functions and services covering the period 1992 to 1998. It notes that while the bulk of LGUs' income is geared towards spending for general public services, the heavy allocation for general administration restricts there spending capacity for other expenditure programs/functions. In addition, comparison of the revenue and expenditure patterns of LGUs reveals that the ability of LGUs to spend appears stronger than their ability to raise revenues.
