Publication: Philippines Agriculture Public Expenditures Review: With a Special Focus on the Implications of the Mandanas Ruling for the Agri-food System
Date
2023-05-24
ISSN
Published
2023-05-24
Author(s)
World Bank
Abstract
The recent positive policy directions
embodied in the New Thinking and One DA agenda have not yet
fully translated into a shift in public expenditure patterns
in the Philippine agriculture sector. One result is that
agricultural growth remains low, and poverty in rural areas,
where farming remains the main source of income, has stayed
high. Underinvestment in public goods in agriculture, vital
for inclusive growth, also drives the lack of growth. The
continued bias supporting rice production has come at the
expense of other agricultural products. The situation could
worsen with the ongoing devolution resulting from the
Mandanas Ruling of the Supreme Court unless the shift in the
agriculture budget from central government to local
government units (LGUs) accompanies clear changes in
expenditure policies. To take full advantage of the
opportunities arising from the new strategic directions and
to devolve more responsibilities to LGUs, agricultural
public expenditure policies must deal with challenges in
three dimensions. First is the challenge of aligning
expenditures with the ambition of the New Thinking. The
second challenge is improving the currently low
effectiveness of public spending, which is one factor behind
the relatively low agricultural share in the government’s
overall budget. The third challenge is successfully
implementing the financial and functional devolution
resulting from the Mandanas Ruling. This Philippines
Agriculture Sector Public Expenditure Review (AgPER) aims to
(a) help the government evaluate the direction of spending
policies under the New Thinking strategy and (b) consider
the best way forward in devolving agricultural services to
LGUs as a result of the Supreme Court’s Mandanas Ruling.
Citation
“World Bank. 2023. Philippines Agriculture Public Expenditures Review: With a Special Focus on the Implications of the Mandanas Ruling for the Agri-food System. © Washington, DC. http://hdl.handle.net/10986/39845 License: CC BY-NC-ND 3.0 IGO.”