World Bank2013-07-262013-07-262003-04-30https://hdl.handle.net/10986/14616The Philippine authorities, confronted with an unfavorable governance and macroeconomic environment in 2001, established a consistent track record in 2001 in stabilizing the economy and improving investor sentiment. The unfolding developments in 2002-03, however, pose a threat to a still fragile fiscal and institutional environment, and can dim the prospects for attaining the Philippines' target for higher growth and renewed poverty reduction. Fiscal sustainability and the government's ability to finance poverty-reducing programscontinues to be at risk from falling revenues, rising public debt and debt service, and off-budget risks. This constrained environment makes it doubly important to focus on increasing fiscal flexibility through increasing revenue collections and enhancing the discipline, efficiency, and equity of public expenditures. the objective of this public Expenditure, Procurement and Financial Management Review (PEPFMR) is to examine selected issues in the allocation and managmeent of public resources of interest to the Philippine authorities, the World Bank, and the Asian Development Bank (ADB). It aims to help the authorities to establish more effective and transparent policies and processes for allocating and using public resources to reduce poverty and promote economic growth. After the Executive Summary which summarizes the key PEPFMR findings and highlights critical actions to improve the management of public expenditures, there are five sections. Most of the report is contained in three main sections: aggregate fiscal discipline, allocative efficiency, and operational efficiency. A fourth section on decentralization highlights some issues as a prelude to a review of the decentralization experience since 1991 and its impact on issues such as service delivery, equity, and efficiency. Themes such as accountability and transparency pervade the report and have not been dealt with separately. The action plan attahced to the Executive Summary indicates the most pressing issues confronting the authorities. The more detailed action plan at the end of this report contains the joint recommendations of the Government and the task team.en-USCC BY 3.0 IGOPUBLIC RESOURCES MANAGEMENTPUBLIC EXPENDITURESFINANCIAL MANAGEMENTFISCAL MANAGEMENTREVENUE MEASURESMACROECONOMIC STABILITYALLOCATIVE EFFICIENCYAGRICULTURAL REFORMSAGRARIAN REFORMEDUCATIONAL REFORMHEALTH EXPENDITURESPROCUREMENTAUDITINGCIVIL SERVICE REFORMSGOVERNMENT SPENDING POLICYLOCAL GOVERNMENT EXPENDITURESCAPACITY BUILDINGDECENTRALIZATIONINTERGOVERNMENTAL FISCAL RELATIONSPENSION REFORMPOWER SECTOR REFORM ACCOUNTINGACCRUAL ACCOUNTINGADBAGGREGATE FISCAL DISCIPLINEAGRICULTURAL PRODUCTIONAGRICULTUREALLOCATIVE EFFICIENCYAPPROPRIATIONSAUDITINGAUDITSAUTHORITYBANK ACCOUNTSBENCHMARKBUDGET EXECUTIONBUSINESS TAXESCAPITAL EXPENDITURESCAPITALIZATIONCDFCENTRAL BANKCIVIL SERVICECOMPETITIVE BIDDINGCOMPLETE LISTINGCONSOLIDATIONCONSUMERSCORPORATE INCOME TAXCORRUPTIONCURRENT EXPENDITURESDEBTDEBT SERVICEDECENTRALIZATIONDECREEDEFICITSDEPOSIT INSURANCEDEVELOPMENT ASSISTANCEECONOMIC COOPERATIONECONOMIC GROWTHECONOMISTSEFFECTIVE GOVERNANCEELECTRICITYENACTMENTEXCESS LIQUIDITYEXCHANGE RATEEXCISE TAXESEXPORTSFINANCIAL ACCOUNTABILITYFINANCIAL HEALTHFINANCIAL INSTITUTIONFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL SECTORFISCALFISCAL DEFICITFISCAL PERFORMANCEFISCAL SUSTAINABILITYGDPGENERALIZED SYSTEM OF PREFERENCESGOOD GOVERNANCEGOVERNMENT AGENCIESGOVERNMENT EXPENDITURESGOVERNMENT FINANCEGOVERNMENT FINANCIAL INSTITUTIONSGOVERNMENT PERFORMANCEGOVERNMENTAL ORGANIZATIONHOUSINGHUMAN CAPITALHUMAN RESOURCEHUMAN RESOURCE MANAGEMENTIMPORT TARIFFSINCOMEINDIGENOUS PEOPLESINFLATIONINSTITUTIONAL DEVELOPMENTINSTITUTIONAL FRAMEWORKINSTITUTIONAL REFORMINSURANCEINTEREST INCOMEINTEREST RATEINTEREST RATESINTERNAL AUDITINVENTORYINVESTMENT CLIMATEITCLABOR FORCELEGISLATIONLEVELS OF GOVERNMENTLOCAL GOVERNMENTLOCAL GOVERNMENT FINANCELOCAL TAXMACROECONOMIC STABILITYMANDATED EXPENDITURESMEDIUM TERM EXPENDITURE FRAMEWORKMUNICIPALITIESNATIONSNATURAL RESOURCESOILOIL PRICESOPERATING EXPENSESPAYMENT SYSTEMSPENSIONSPOLICY ENVIRONMENTPOLICY MAKERSPOTENTIAL INVESTORSPOVERTY ALLEVIATIONPRIVATE SECTORPRIVATE SECTOR PARTICIPATIONPRIVATIZATIONPROCUREMENTPROPERTY TAXESPROVISIONINGPROVISIONSPUBLIC ADMINISTRATIONPUBLIC DEBTPUBLIC EMPLOYMENTPUBLIC EXPENDITUREPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC EXPENDITURESPUBLIC FINANCEPUBLIC FINANCESPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC PROCUREMENTPUBLIC RESOURCESPUBLIC SECTORPUBLIC SECTOR DEFICITPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR REFORMREAL GNPREGULATORY FRAMEWORKREORGANIZATIONREPRESENTATIVESRETIREMENTREVENUE ADMINISTRATIONREVENUE COLLECTIONREVENUE PERFORMANCERISK MANAGEMENTSAVINGSSECURITIESSENATESOCIAL POLICIESSOCIAL SECURITYSOCIAL WELFARETAXTAX ADMINISTRATIONTAX CODESTAX COLLECTIONTAX INCENTIVESTAX PAYMENTSTAX POLICYTAX REVENUETAX REVENUESTAX SYSTEMTECHNICAL ASSISTANCETELECOMMUNICATIONSTOTAL EXPENDITURESTRANSPARENCYTREASURYTRUST FUNDSURBAN DEVELOPMENTUTILITIESVALUATIONWORLD TRADE ORGANIZATIONWTOWorld Bank10.1596/14616