Provincial growth and industrialization
June 12, 2025 | 12:00am
https://www.philstar.com/business/2025/06/12/2449857/provincial-growth-and-industrialization
In 2024, the Philippines has a gross domestic product (GDP) of P26.45 trillion at current values or P22.24 trillion at constant values (2018 = 100). At constant values, the richest region of course is Metro Manila with P6.94 trillion regional GDP (RGDP), second is Calabarzon with RGDP of P3.27 trillion, third is Central Luzon with P2.47 trillion, fourth is Central Visayas with P1.28 trillion, fifth is Davao Region with P1.08 trillion, based on data from the Philippine Statistics Authority (PSA).
In manufacturing value-added in 2024, the Philippines has P3.92 trillion at constant prices of which the largest contributor is Calabarzon with P1.33 trillion, followed by Metro Manila with P0.81 trillion and Central Luzon with P0.65 trillion.
The PSA has further disaggregated the RGDP into provincial product accounts (PPA) but data is until 2023 only, the PPA for 2024 to be released maybe months from now.
For Metro Manila, the largest or richest city is Quezon City with PPA in 2023 at constant prices of P1,271 billion, followed by Makati City with P1.183 billion, Manila City with P988 billion, Taguig City with P566 billion and Pasig City with P482 billion.
For Calabarzon, the richest province is Laguna with PPA in 2023 at constant prices of P1,093 billion, followed by Cavite with P780 billion and Batangas with P646 billion. In terms of per capita income, the richest is still Laguna with P294,400 per person, followed by Batangas with P198,000 and Cavite with P174,000.
The RGDP value-added from electricity, steam, water and waste management (ESWWM) in 2023, Calabarzon has P130 billion and more than half of this came from Batangas with P62.6 billion. Credit goes to huge gas and coal power plants located in various municipalities of Batangas.
In the statement of receipts and expenditures by region and province for 2025, the largest spending region is Central Luzon with P31.3 billion, followed by Calabarzon with P26.4 billion and Western Visayas with P18.0 billion. (Source: DBM, Budget of Expenditures and Sources of Financing 2025, Table F.12)
Among provinces nationwide, the largest spenders (P6 billion and up) are Cebu with P10.2 billion, Bulacan with P8.5 billion, Laguna P7.5 billion, Palawan with P6.6 billion and Ilocos Sur with P6.1 billion.
Provinces with largest internal revenue mobilization are Rizal with P3.1 billion, Pampanga with P2.9 billion, Bulacan with P2.8 billion, Quezon with P2.6 billion, Bataan with P2.4 billion and Cebu with P2.0 billion.
Most local government units (LGUs) outside Metro Manila are still highly dependent on fiscal transfer from the national government via national tax allotment (NTA), previously called internal revenue allotment. This should change in favor of more internal revenue mobilization as LGUs assume more infrastructure and social services delivery to their constituents.
So in terms of Philippines industrialization, the most industrialized region is Calabarzon with huge manufacturing output and value-added. And within the region, the most prepared for faster industrialization is Batangas because of its existing infrastructure, like having the largest value-added from ESWWM, with large international and domestic seaport.
But in terms of local revenue mobilization, Batangas is not among the majors, and so its expenditures leeway is not that big.
There is a change in provincial leadership in Batangas with actress Vilma Santos becoming governor again next month. She was governor from 2007-2016 or three terms. Her husband, Finance Secretary Ralph Recto, is focused on national fiscal consolidation, raising more revenues outside tax hike in order to reduce the budget deficit and reducing the financing or borrowings needed. Governor-elect Vilma Santos must do a similar provincial fiscal consolidation.
Before the lockdown dictatorship of 2020-2021, I used to drive yearly from Makati to Iloilo and back via Batangas-Mindoro-Aklan. The existing tollroads Skyway-SLEX-STAR by SMC allow for faster and safer travel to Batangas Port.
The largest gas plants using indigenous gas from Malampaya and imported LNG are in Batangas, plus huge coal plants also in the province. So it has the largest power generation per square kilometer of land nationwide and big industrial and commercial business locators should have less worry about power deficiency.
But the electric cooperatives that serve the province, Batelec 1 and Batelec 2, are far from being efficient and hence, power interruption is more frequent. Corporate distribution utilities should come in as business partners or take over their franchise area in the near future.
A few things that I wish to see in Batangas. Like more land reclamations and artificial island near Ilijan, a bridge-tunnel connecting Batangas-Verde Island-Mindoro that also carry power transmission lines, a tollroad from Ilijan to Lucena, petrochem and big mining processing plants.
I wish returning Governor Vilma Santos and her team would push hard big infrastructure projects via public-private partnership (PPP) and attract more big business locators, more big manufacturing-processing plants that will help further expand the country’s manufacturing capability. Social services like more public health, public education can take care of itself once more businesses create more jobs, and more local revenues are raised.
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