PDF Working Group on Decentralization and Local Government Work Plan for CY 2011-2012

1. PDF Working Group on Decentralization and Local GovernmentWork Plan for CY 2011-2012 PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

2. Philippine Development Forum • primary mechanism of the Government for facilitating substantive policy dialogue among stakeholders on the country’s development agenda • serves as a process for developing consensus and generating commitments among different stakeholders toward critical actionable items of the Government’s reform agenda

3. Working Group on Economic & Fiscal Reforms Working Group on Mindanao Working Group on Growth & Investment Climate Working Group on MDGs and Social Progress Working Group on Sustainable Rural Development Working Group on Infrastructure Working Group on Governance & Anti-Corruption Working Group on Decentralization & Local Government Each WG facilitates wide consultations across a broad range of stakeholders on these specific themes; each is led by a Government agency as lead convener with a development partner as co-lead convener.

4. PDF Working Group on Decentralization and Local Government (WG- DLG) • serves as a venue for discussing substantive policy issues related to governance at the local government unit (LGU) level • an important forum for achieving consensus on a policy agenda and set of priorities actions identified by it’s members DILG acts as the Lead Convener World Bank acts as a Co-Convener

5. Current Thematic Areas Harmonize capacity building programs for LGUs and other key institutions to improve capacity of LGUs in core governance functions CAPACITY BUILDING LOCAL GOVERNMENT FINANCE Accelerate revenue mobilization, improve expenditure management and increase access to financing by LGUs for better service delivery and growth promotion PERFORMANCE BENCHMARKING Increase use of local governmentperformance measurement systems to benchmark performance and create incentives for better performance Improve decentralization policy framework reflected in updated legal and institutional arrangements to strengthen local governance POLICY REFORMS ON DEVOLUTION PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

6. Proposed Development Agenda(from Thematic Areas) CAPACITY BUILDING IMPROVING FISCAL CAPACITY FOR LOCAL DEVELOPMENT LOCAL GOVERNMENT FINANCE PROMOTING GOOD LOCAL GOVERNANCE PERFORMANCE BENCHMARKING ACCELERATING LOCAL ECONOMIC AND SUSTAINABLE DEVELOPMENT POLICY REFORMS ON DEVOLUTION PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

7. Development Agenda with Outcome Statement Improved local fiscal capacity towards greater local government autonomy IMPROVING FISCAL CAPACITY FOR LOCAL DEVELOPMENT Accountable LGUs exercising transparent and participatory local governance PROMOTING GOOD LOCAL GOVERNANCE Effective delivery of basic services and enabling environment for local economic growth and sustainable development ACCELERATING LOCAL ECONOMIC AND SUSTAINABLE DEVELOPMENT PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

8. Development Agenda and Types of Projects/Activities Analytical Studies Policy Reforms Capacity Building IMPROVING FISCAL CAPACITY FOR LOCAL DEVELOPMENT PROMOTING GOOD LOCAL GOVERNANCE ACCELERATING LOCAL ECONOMIC AND SUSTAINABLE DEVELOPMENT PDF-WORKING GROUP ON DECENTRALIZATION AND LOCAL GOVERNMENT

9. PDF WG-DLG List of Priority Projects and Activities for CY 2011-2012

10. Development Agenda 1:Improving Fiscal Capacity for Local Development Stepping-Up Own Source Revenue • Rationalization of Fiscal Incentives • Development of a Local Business Taxpayer Database • Institutionalization of a Competency Certification System (CCS) for Treasurers • Use of Presumptive Gross Sales Figures to Calculate Business Tax Liability • Reform of Inter-Governmental Fiscal relations (revenue assignments) among LGUs level • Review of decentralization-laws and policies specially those affecting fiscal operations of LGUs (draft Amendments to LGC submitted) • Enhancing National Government Transfers to LGUs • Streamlining procedures in the release of LGU shares in forest charges, energy resources and mining royalties (on-going) • Enhancing the system for implementing changes in the IRA due to changes in population and land area

11. Development Agenda 1:Improving Fiscal Capacity for Local Development Improving Management of Expenditures • Development of Electronic System (e-system) for Financial Transactions • Development of an improved Personnel Expenditure Policy (study completed) • Improvement on the policy on the utilization of Special Education Fund (policy drafted) • Improving LGUs Access to Financing • Improving LGU Access to and monitoring of Official Development Assistance (ODA) (study completed) • Enhancement of the e-Statement of Receipts and Expenditure (SRE) System to include 1)Fiscal Capacity Modeling and Forecasting, 2) Financing Modalities, 3) Debt Management, and 4)Creditworthiness and Debt Certification • Review of the local finance framework and implementation of the identified key reforms areas

12. Development Agenda 2:Promoting Good Local Governance Implementing Performance Incentive Sytsesm • Institutionalizing Incentive Systems for Local Governance and Performance • Implementation of DILG’s LGU Performance Challenge Fund (PCF) Program in 2011 • Developing a National Strategy for Incentives Systems for Local Governance and Performance • Rapid Assessment of DILG’s LGU Performance Challenge Fund (PCF) Program • Knowledge Sharing/Advocacy • Improving LGPMS thru a 3rd party validation and linking with the seal of good housekeeping

13. Development Agenda 2:Promoting Good Local Governance Improving efficiency and transparency of LGU Operations • Promotion of inter-local governance reforms (on-going) • Intensifying partnership with People Organization (Pos),Civil Society Organizations (CSOs), and Private Sector (PS) • Institutionalization of Public Disclosures in LGUs Improving system for providing capacity building for LGUs • Continuation of NEO Program 2010 (on-going) • Continue the implementation of the JMC including the capacity-building of LGUs on core operations (planning, budgeting, investment programming, revenue generation)

14. Development Agenda 3:Accelerating Local Economic and Sustainable Development • Up-scaling Business Permit and Licensing System (BPLS) (on-going) • Development of capacity-building programs on special topics (e.g. financing options available for LGUs, management and coordination of ODA, DRRM and climate change adaption, Amended Fire Code) • Development of Service Standards per service sector and per LGU level • Encouraging Public Private Partnership (PPP) in service delivery • Improving Management and Operations of Local Economic Enterprises (LEEs) • Enhance LGU Exercise of their Corporate Powers • Mainstreaming DRR/CCA in local governance

15. Thank you!