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Philippines - Decentralization in the Philippines - Stgrengthening local government financing and resource management in the short term (English)

This report reviews two facets of decentralization currently engaging policy-makers: 1) the sources of financing under decentralization, and, 2) cross-cutting processes to strengthen the accountability of resource use. It does not assess whether decentralization is justified in the Philippines - it approaches the arrangements as they exist, and explicitly focuses on actions that could be feasibly completed within six to nine months. Administrative actions in two key areas could improve local government performance in the short term: a) enhancing LGU - Local Government Unit - ability and capacity to access resources, and, (b) strengthening key resource management processes in the first instance, those relating to planning, budgeting, procurement and financial management. The report's recommendations stem from five main issues: raising LGU access to credit by private financial institutions (PFIs) requires removing bottlenecks to PFI participation in LGU lending, and rationalizing LGU grant policies; local government own-source revenues could be significantly increased through LGU measures to increase collection of real property tax and business tax, and, national government actions to assist LGUs; local government planning and budget management could be made more effective, transparent and accountable through administrative measures by local and national governments; actions to embed transparency and accountability within LGU procurement and financial management processes, could improve these processes, promote effective resource use, and strengthen LGU governance over time; and, the national government should initiate a review of the institutional arrangements for generating consensus among stakeholders, on managing the decentralization process.

Details

  • Document Date

    2004/12/15

  • Document Type

    Other Public Sector Study

  • Report Number

    26104

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    Philippines,

  • Region

    East Asia and Pacific,

  • Disclosure Date

    2005/09/21

  • Disclosure Status

    Disclosed

  • Doc Name

    Philippines - Decentralization in the Philippines - Stgrengthening local government financing and resource management in the short term

  • Keywords

    government own-source revenue;private sector participation in infrastructure;national government agency;access to potable water;operation and maintenance expenditure;local government tax authority;Municipalities;Environment and Natural Resources;local own source revenue;Tax Policy and Administration;agricultural extension and research;local government performance;local government financing;rising unemployment rate;real property tax;general government expenditure;local tax administration;local government access;repair and maintenance;information and communication;effective technical assistance;support from community;human resource development;operation and management;primary health care;local government expenditure;land use planning;social welfare services;local government function;internal control environment;civil society partner;improved service delivery;civil service status;local public work;regional economic growth;per capita income;decline in poverty;infrastructure sector;local government borrowing;internal revenue allotment;private financial institution;benefits to health;private sector funding;political economy factor;public health worker;local budget allocation;civil society monitoring;local development council;financial management process;civil service compensation;provision of education;local tax system;local government credit;quality and quantity;coastal resource management;civil society participation;government to business;Solid Waste Management;water supply development;expenditure responsibility;government units;personal service;Public Services;business tax;private capital;local revenue;school building;Budget Management;public official;central transfer;environmental degradation;fire department;tax revenue;Agrarian Reform;political executive;local taxes;decentralization theorem;Public Goods;fiscal situation;Municipal Finance;government investment;marginal revenue;local autonomy;territorial jurisdiction;public policy;development partner;financial resource;protective service;capital financing;loan default;debt relief;clean slate;credit financing;government vision;administration function;city government;local economy;annual investment;subsequent phase;informal payment;political official;political power;fiscal impact;procurement weakness;social group;tax obligation;institutional strength;national transfer;institutional environment;increased access;small cities;major tax;management tool;industry conduct;health program;data limitation;regional data;administrative level;regional performance;Traffic Signals;primary source;Education Services;geographical location;relative performance;environmental service;disaggregated level;fiscal administration;constitutional requirement;public servant;data bank;blood relatives;government system;decentralization experience;interest group;domestic product;rigorous analysis;poverty datum;loan amortization;positive impact;rehabilitation centers;positive correlation;regional pattern;inhabited islands;public market;social forestry;pollution control;consultative process;provincial hospital;elementary school;foreign affair;national defense;public cemeteries;cultural background;statutory provision;individual income;autonomous region;functional Authority;tax share;legislative bodies;government exercises;administrative region;government revenue;Taxpayer Registry;system improvement;increased competition;manual system;oversight agency;good procurement;procurement audit;adequate training;procurement personnel;decentralization process;enforcement action;taxpayer registration;administrative action;limited capacity;establishment control;procurement delay;personnel information;Wage Bill;personnel cost;government planning;administrative measure;provincial planning;administrative control;garbage collection;classification system;performance incentive;professional qualification;administrative shortcoming;incentive problem;tax collection;gross sale;income estimate;budget formulation;national budget

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Citation

Philippines - Decentralization in the Philippines - Stgrengthening local government financing and resource management in the short term (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/794951468143968070/Philippines-Decentralization-in-the-Philippines-Stgrengthening-local-government-financing-and-resource-management-in-the-short-term