The Philippine authorities, confronted
with an unfavorable governance and macroeconomic environment
in 2001, established a consistent track record in 2001 in
stabilizing... Show More + 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. Show Less -