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Local Government Finance in the Philippines. Milwida M. Guevara Synergeia www.synergeia.org.ph. The Philippines. 2,100 islands 76.5 million people in 2000; 2.4 per cent growth annually (88.7 million by July 2007) 38 percent urban estimated to increase to 82 percent in 2020.

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local government finance in the philippines

Local Government Finance in the Philippines

Milwida M. Guevara

Synergeia

www.synergeia.org.ph

the philippines
The Philippines
  • 2,100 islands
  • 76.5 million people

in 2000; 2.4 per cent growth annually (88.7 million by July 2007)

  • 38 percent urban estimated to increase to 82 percent in 2020
who does what
Who does what?
  • Provinces: Hospital and tertiary health services; Low cost housing; telecommunications; Infra from local funds; social welfare services
  • Municipalities: Primary health care; school building; solid waste disposal; cultural centers, parks, tourism facilities
  • Barangay (Village) : health center, day care, solid waste collection, reading center
  • Cities: All of the above
vertical fiscal imbalance
Vertical Fiscal Imbalance

LGU revenues do not match their expenditures.

the road to a robust local finance
The Road to a Robust Local Finance
  • Definition of Minimum standards for public services, e.g. P10,000 per elementary student
  • Grant system that equalizes needs and resources
  • Productive, flat and simple to administer local taxes
  • Systems and processes that promote tax compliance and transparency
out of the box strategies policy framework that supports
Out of the Box Strategies—Policy framework that supports:
  • Public-private sector partnerships
  • Development of a credit market

* Special Purpose Vehicles

* Bond financing

* Credit rating for LGUs

* Local Government Guarantee Corporation

* Municipal/City Banks?

  • Municipal Development fund for less capable LGUs
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