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Fiscal Decentralization and Local Finance Reforms in the Philippines

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  • Llanto, Gilberto M.

Abstract

The paper examines the progress being made in local finance reforms and indicates pathways to advance those reforms. A summary of the effects of decentralization is given as a contextual background for the discussion of local finance reforms. The inefficient tax assignment has constrained the mobilization of local tax revenues even as local government units have become very dependent on the intergovernmental fiscal transfer, called the “internal revenue allotment.†The paper raises the importance of revisiting the internal revenue allotment formula. It identifies the local finance reforms currently being undertaken and reports the progress being made at the local and national level. The final section comments on the outstanding issues in local finance reform and gives some recommendations.

Suggested Citation

  • Llanto, Gilberto M., 2009. "Fiscal Decentralization and Local Finance Reforms in the Philippines," Discussion Papers DP 2009-10, Philippine Institute for Development Studies.
    • Handle: RePEc:phd:dpaper:dp_2009-10
    as

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    File URL: https://www.pids.gov.ph/publication/discussion-papers/fiscal-decentralization-and-local-finance-reforms-in-the-philippines
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    Cited by:

    1. Layug, Allan S., 2009. "Triangulation Framework for Local Service Delivery," Discussion Papers DP 2009-37, Philippine Institute for Development Studies.
    2. Verena Fritz & Brian Levy & Rachel Ort, 2014. "Problem-Driven Political Economy Analysis : The World Bank's Experience," World Bank Publications - Books, The World Bank Group, number 16389.
    3. Tristan Canare, 2021. "Decentralization and welfare: theory and an empirical analysis using Philippine data," Public Sector Economics, Institute of Public Finance, vol. 45(1), pages 93-123.

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    More about this item

    Keywords

    internal revenue allotment; fiscal decentralization; local government code; intergovernmental fiscal transfers; tax-expenditure assignment;
    All these keywords.

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