The Contribution of The Traffic Management Code of Quezon City in The Revenue Collections
The Contribution of The Traffic Management Code of Quezon City in The Revenue Collections
The Contribution of The Traffic Management Code of Quezon City in The Revenue Collections
Collections
Abstract
Quezon City, being one of the most populated and busy cities in Metro Manila, was not exempted
from the traffic problems and its effects to the life of ordinary citizens, as well as the activities and
operations of the private business and the government offices alike. This has prompted the city
government authorities to find possible solution to minimize, if not to totally eliminate, the impact
brought about by traffic problems in the economic aspect of our lives. Worsening traffic conditions
entails financial loss, since it has already affected the economic and social life of the people, and the
nation as well. In order to remedy the situations, the local government units have formulated their own
version of Traffic Management Code. The statistical test used in this study was multiple regression
analysis, wherein each variable (salary and other expenditures, traffic enforcers, registered vehicles,
and traffic violations) was computed against the total collection of fines and penalty paid by the traffic
violators. This method was used to determine if those variables were the factors that affects the
performance level of the revenue collection generated from the enforcement of QC Traffic
Management Code.
Keywords: Traffic Management Code; Traffic Violations; Violation Charges; Quezon City
1. INTRODUCTION
Worsening traffic conditions entails financial loss [1], since it has already affected the economic [2] and social life
of the people, and the nation as well [3]. In order to remedy the situations, the local government units has formulated
their own version of Traffic Management Code, to instill discipline among stubborn behavior of drivers on the road,
and put order on the various busy streets [4]. Said Traffic Management Code, though it came into being first as a
measure to mitigate worsening traffic problems, had become a source of potential revenue for the government,
which they have set their own rates of penalty for every traffic violations that would be committed by erring
motorists. Though raising revenue from fines collected from traffic violations is not the primary objective of the
government on its creation of traffic management department, but to ensure that traffic congestions, snail pace of
traffic flows, and other conditions that affects the socio-economic aspects of the nation, would be minimize, if not
totally eradicated. Undeniably, it has created an opportunity to create revenue for the local government. Considering
it had been a normal occurrence that many drivers commit traffic violations in the various roads and streets of the
metropolis every day.
The Quezon City Government in 2004 has enacted “Sangguniang Panglungsod Bilang1444, Serye ng 2004,” [5] an
ordinance that is otherwise known as Traffic Management Code of Quezon City, Metro Manila. This City Ordinance
provided for the Traffic Rules and Regulations to be observed by all motorists travelling on all roads of Quezon
City, whether national road or local in classifications; pedestrians rules and regulations; vehicles stops and transport
terminals; the use of sidewalks and alleys; roads use by all motor vehicles including motorized tricycles and
pedicabs, bicycles, horse drawn rigs, push serve parking zones; and in general, such as other rules and regulations
promulgated in furtherance of an optimum utilization of the road network in Quezon City [5]. The objective of said
ordinance is to address the perennial problem was besetting the city concerning the effect of traffic congestion and
the unrelenting behavior by drivers in committing traffic violations by imposing fines and penalties. This serve as
measures to mitigate the impact of traffic problems to the people and all the other sectors that are in one way or
another becomes helpless victims of worst traffic conditions. [6]
In order to ensure that said traffic ordinance are implemented and complied with by all the stakeholder and road
users, and to oversee the supervision of traffic situations in the city streets, the Quezon City government decided to
create the Department of Public Order and Safety (DPOS) the lead office for the purpose. Specifically, a division
under DPOS called the Traffic Operations Division (TOD-DPOS) is the office of the local government that (a)
44 BiLD Law Journal 7(1s)
supervises the hired personnel and deputation of traffic enforcer that are tasked to ensure the smooth flows of traffic
on the roads, and (b) makes all vehicle drivers observe compliance to the traffic management code.
The TOD office provides necessary training and education for traffic enforcers in order to equip and prepare them
on how they would competently oversee or manages the traffic situation on the city’s streets and to be able to issue
an ordinance violations receipt to traffic violators with precision. The traffic enforcers were deputizing to apprehend
anyone who commits traffic violations and to issue violations tickets to erring drivers and charge them to pay certain
amount of fees that correspond to their committed violations.
The notorious traffic on Metro Manila’s roads is not just a daily annoyance that millions of Filipinos have to live by.
The country loses billions of dollars’ worth of human productivity, according to a transportation official. A recent
study showed that Metro Manila traffic could cost the Philippine economy $3.27 billion a year in productivity due to
wasted man hours and higher freight costs, among other problems, the Department of Transportation and
Communications (DOTC) said [7]. Citing the study’s findings, DOTC Undersecretary Rene Limcaoco said this
highlighted the need for the government to accelerate the rollout of transportation-related projects to catch up with
the country’s ever-expanding needs.
In the case of Quezon City, in order to ensure that the deputized Traffic Enforcer will show good performance in the
carrying out the assigned task to ensure the smooth flow and orderly traffic situation on the streets, and to ensure
that they will be more conscious and vigilant in apprehending traffic violators they were given incentives to do so.
As stated in SP 1444, S-2004, the deputized traffic enforcers will be given a twenty (20%) commission for every
amount of the penalty charged to erring drivers who have committed traffic violations. As stated below in Article
XXII, Section 30 of the said ordinance it says that:
“SECTION 130. – Creation of Traffic Development Trust Fund. – There is hereby created a Traffic
Development Trust Fund generated from all receipts from franchising, supervisory, regulatory fees, fines and
surcharges as set forth in this Ordinance.
All collections for violation of any section or provision of this Ordinance shall accrue to the Trust Fund of
Quezon City Government. The City Accountant shall keep and maintain a special account and all records related
thereto.
For the collected fines, incentives shall be given to the following:
• Twenty percent (20%) to Traffic Enforcers concerned to be distributed through Automated Teller Machine
(ATM)
• Five percent (5%) to Traffic Enforcement Units”
….. x x x x x x x x x x
The general objective of the study is to ascertain the effectiveness of traffic management in Quezon City in terms of
efficient and effective collection of traffic violation fees and charges with regards to rate of penalty imposed on
motoring public who commit traffic violations as per City Ordinance SP 1444. S-2004 is known as Quezon City
Traffic Management Code. Likewise, it seeks to determine the significance of the collection of fees and charges
collected from erring drivers in the over-all performance of Quezon City revenue collections. The motoring public
would be able to realize the importance of being compliant, respectful and obedient of traffic regulations of the
government in order to avoid wasting of resources, time and productivity due to commission of traffic violations.
This study would help the traffic authorities to assess and identify the problems and weakness in the implementation
of traffic management code in order to determine the necessary policy to formulate and the strategies needed to
implement. However, the study would not attempt to analyze, evaluate the efficacy of various strategies, policies
and programs utilizes by government offices in its objective to address the sufferings of the people or diseconomy
brought about by traffic congestion, slow-pace traffic flows that becomes a normal scenes in the daily life of people
in urban cities.
2. METHODOLOGY
The study deployed the descriptive- analytical design. This type of research describes the background and nature of
the subject of the study (Revenue Collection from Fines and Penalties on QC Traffic Ordinance) and analyzes the
factors that affects the collection of revenues on traffic violations and explain the relationship between performance
of revenue collection (Dependent variable) and several factors (independent or explaining variables) that affects the
traffic violations by motoring public in Quezon City streets/road such as: spending on the management of traffic
The Contribution of the Traffic Management Code of Quezon City 45
situation, number of registered vehicles, number of traffic violations committed by motoring public, number of
traffic enforcers manning the city streets/road in QC.
It aimed to test the causal relationship between the dependent variable and independent variable, to determine the
true effects and true cause [8]. In a multiple regression analysis, the change in the dependent variable is explained by
changes in the independent variable, holding other independent variables constant [9,10]. Thus, the multiple
regression model discussed below would try to measure how the independent variables affect the revenue collection
from traffic violation fees and charges.
The data being collected and used in this study were gathered from the records (secondary data) available from City
Treasurer Office, Department of Public Order and Safety and Land Transportation Office. Likewise, the researcher
conducted interviews with apprehended drivers, traffic enforcers and the staff and personnel at DPOS in order to get
their opinions and perception on the effectiveness and efficiency, or issues and concerns, in the implementation of
QC Traffic Management Code in terms of collection efficiency. In this study, a SPSS program, which is a Statistical
Test Software, is used to perform statistical tests [11].
2.1 Conceptual Framework
Figure 1 demonstrates the conceptual framework of the study. This study postulates that any changes occur in any of
the independent variables creates a positive impact or increases in the performance level of revenue collection from
fines and penalty from any commission of violations on QC Traffic Management Code. Meaning, in order to
improve the collection performance there must be also an increase on numbers of vehicles registered (plying the
roads and streets of Quezon City); there should be an increase on the number of traffic enforcers that will man the
road which would entails more apprehension of traffic violators, and the city government should consider investing
or appropriate more funds for the installations of street signs and signboard, and traffic devices, conduct continuous
hiring and training of personnel, etc.
Due to that, the new management reshuffle the personnel assigned to OVR while those enforcers who have been
reported to have a record of low turn-over of apprehension was investigated, and if found that there is a strong
indication of being corrupt were no longer allowed to be issued an OVR ticket. Besides that, the government income
by source, Quezon City 2011-2015 was tabulated in Table 2.
Table 2. Government Income by Source, Quezon City 2011-2015 (in thousand pesos)
Income Source 2011 2012 2013 2014 2015
Local Sources 8,475341.58 9,794,982.29 10,266500.64 11,070,555.04 12,893,611.7
0
A. Tax Revenues 6,870,588.30 8,479,242.63 9,002,724.72 9,451,100.55 11,243,120.2
7
B. Non-Tax Revenues 1,604,753.28 1,315,739.66 1,263,775.92 1,619,454.49 1,650,491.43
i. Regulatory Fees 903,427.61 734,595.68 762,050.85 871,614.87 825,546.83
ii. Service User Charges 170,078.21 106,825.45 139,091.20 150,209.17 151,042.12
iii. Other Receipts 315,082.41 227,661.91 134,320.64 341,046.56 397,572.51
External Sources 3,224,713.11 2,671,761.09 2,814,732.11 3,158,853.68 3,616,982.15
TOTAL REVENUE 11,700,054.69 12,466,743.38 13,081,232.76 14,229,408.72 16,510,593.8
6
REVENUE FROM TRAFFIC 64,343 58,476 50,582 55,809 46,622
COLLECTIONS
% share of Traffic Collection to 4.00% 4.44% 4.00% 3.44% 2.82
Non Tax-Revenue
% Share of Traffic Collection to 0.55% 0.47% 0.39% 0.39% 0.28%
QC Total Revenue
The collection from traffic fines or penalty was classified under Non-Tax Revenue, specifically, from the item
Regulatory Fees. Looking at Table 2, it shows that the total percentage of the amount (fines) collected from Traffic
Violations is only about four (4%) percent of the Non Tax Revenue. This information entails that the revenue
collected from QC Traffic Code was comparatively almost non-significant compared to other sources of revenue
generated by the QC government from all sources. It was only about 0.42% of the Total Revenue of the city’s
collection from all sources.
3.1 Most Common Traffic Violations of motoring public in QC
During the time or period specified on this study, it shows that the kind of traffic violation who has most numbers of
frequencies was traffic obstruction followed by disregarding of traffic signs followed by other types (Table 3). As
time passes by the violations about Traffic Obstruction had slowly getting low. Moreover, the other types of traffic
violations had also registered a slow down on its frequency or incidents of commission by motoring public.
However, the violations of Disregarding Traffic Signs had registered an increasing trend of frequency over time
during period of observation. This condition validated claims by articles written on the topic and with other study
conducted which said that one of reason of worsening traffic conditions in Metro Manila was the behavior of drivers
that keep on ignoring or disregarding traffic signs.
Table 3. Most Common Traffic Violations in QC
Violation 2013 2014 2015
DTS 28714 31186 27343
Obstruction 33094 26864 27282
No loading/Unloading 1282 14693 9503
The Contribution of the Traffic Management Code of Quezon City 47
or rejected. Table 4 illustrates the regression model of this study. Therefore, after the given regression model was
run or computed the new model was now stated: T R = -.095TSE + .929TE -.179TRV + .042TTV + µ
Table 5 and Table 6 demonstrate the monthly collection of penalty and charges from traffic violation and total
number of traffic violations (TTV) respectively. The total monthly collection of penalty and charges from traffic
violations during the period of 2013 to 2015 had its highest amount of 5,389,160 pesos while its lowest collection
was only 1,733,641 pesos. Based on the collected data, the monthly trend of collection shows an erratic flow of
collection, though, generally it has an increasing trend over-all, there were also months that registered a reduction of
amounts collected compared to its previous months. Said conditions can be attributed to various reasons such as but
not limited to weather conditions, number of incidence of apprehension, shortage of OVT tickets, temporary lifting
of traffic laws, or non-working holidays which compels the reduction of vehicles roaming around the city.
Table 5. Monthly Collection of penalty and charges from Traffic Violation
AMOUNTS Frequency Percent
Below 3 Million 4 11.11%
3M to 3.49M 1 2.78%
3.5M to 3.99M 7 19.44%
4M to 4.49M 12 33.33%
4.5M to 4.99M 5 13.80%
5M and above 7 19.44%
Total 36 100%
On this test, the given regression model after being computed the fitness of the parameter estimates and have had
yielded a result which indicated that the regression model has a good parameter estimates to test whether the
The Contribution of the Traffic Management Code of Quezon City 49
hypotheses will be accepted or rejected since the variance of the estimates is statistically significant at 5% level of
degrees of freedom of error.
Likewise, the Coefficient of Multiple Determination R2, which explained or defined the proportion of the total
variations in Total Collection of Traffic Fines by its explanatory variables shows that it was also significant at 95%
level of confidence that variations in the explanatory variables explained the outcomes of the collection of Traffic
fines using those explanatory variables. Table 7 shows the obtained R2 is 0.822.
Table 7. Coefficient of Multiple Determination R2 (model summary)
Model R R Adjusted Std. Error of
Square R Square the Estimate
1 .907a .822 .799 411504.387
a. Predictors: (Constant), T T V, T R V, T S E, T E
Lastly, the Multiple Regression Model used on this study states that it is significant since the F distribution of all the
parameter used in the model at 5% level of degrees of freedom exceeds the tabular value of F at specified level of
significance of degrees of freedom which is more than two (2) and the regression parameters are not equal to zero
and the coefficient of multiple determination is significantly different from zero. The result of Anova test is shown
in Table 8. Therefore, the F ratio can be used to test to the linear restriction of whatever of the given regression
parameter.
Table 8. ANOVA result
Model Sum of df Mean F Sig.
Squares Square
1 Regression 2.428E13 4 6.071E12 35.853 .000a
Residual 5.249E12 31 1.693E11
Total 2.953E13 35
a. Predictors: (Constant), T T V, T R V, T S E, T E
b. Dependent Variable: T R
4. CONCLUSION
The issue on traffic congestion, slow-moving pace of traffic flows, traffic accidents and other traffic problems that
encountered or witnessed that was usually taking place was considered a serious problem. A lot of study had been
done with regards to this phenomenon in an attempt to have a meaningful and comprehensive understanding of the
nature and causes of this menace. In fact, government had acknowledged that due to this condition, billions of
dollars has been wasted in form of hindered flow of goods and services, wasted fuels, time and productivity.
Notwithstanding, the counts of death occurred due to traffic accidents and the damaged of property.
Data regarding those variables identified as factors that could explain the behavior or level of collection
performance had been gathered from appropriate government agency such as OVR-DPOS and QC Treasurers Office
(for the data on Salary and Expenses, Number of Traffic Enforcers, and Actual Collection of Traffic Violations);
Land Transportation Office (for the data number of registered vehicles). Afterwards, a regression parametric model
was formulated in order to define the behavior of collection performance using those data as explanatory variable,
wherein the Dependent Variable was the Total Revenue and the explanatory variables were the Total Salary and
other Expenses; Total Number of Enforcers; Total Registered Vehicles; and the Total Traffic Violations. After all
the necessary data had been collected each explanatory variable using SPSS program.
Furthermore, the test yields an information that two of the explanatory variables found to have a direct relationship
or effect on the level of collection of revenue from traffic violations (Total Number of Enforcers and Total Traffic
Violations) while the two other explanatory variables, though significant variables of the regression model, has an
inverse relationship or effect on the level of revenue collections generated from traffic violations. Meaning to say,
for every increase in the number of Traffic Enforcers, and the number of Traffic Violations there were a
corresponding amount of increase in revenue collection on traffic violations. On the other hand, for whatever
increase in the number of registered vehicles in Quezon City and any increase in the amount of salary and other
expenses allocated for the implementation of Traffic Management Code, there is no effect in the increase of
collection of revenue generated from traffic violations.
50 BiLD Law Journal 7(1s)
5. ACKNOWLEDGMENTS
The authors would like to acknowledge the unconditional support from the Lyceum of the Philippines University.
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