Japan-ADB provides fund to Philippines' local govt units
18 Dec '07
3 min read
Local government units, however, continue to face difficulties in fulfilling their mandate. Thus, the country needs to ensure that stable mechanisms are in place to channel adequate resources to local governments. Financial accountability, transparency and capacity also pose challenges to local governments. Improvements are needed in service delivery, governance and performance measurement.
The program will work towards better flow of resources that local government units are entitled to and assist in other means of raising revenue through public and private sources.
The program will also help improve the capacity of local government units in planning, managing spending and procurement. It will also strengthen monitoring systems by making the financial and service delivery performance of local government units more transparent.
The Philippines experienced robust economic performance in 2006 and 2007. Gross domestic product rose 5.4% in 2006 from the 4.3% annual average growth from 1990-2005. The medium-term outlook remains positive, with the growth this year expected to meet the higher end of the target of 6.3-7.3% led by consumption, exports and a recovery in investments.
Higher growth is required to address the goals of poverty reduction and achieve the Millennium Development Goals, which serve as the blueprint for countries and development institutions in reducing poverty and improving lives.
“The Philippines appears on track to achieve several Millennium Development Goals targets but it is behind in health, education and environment because of tighter spending by the government to reduce the budget deficit,” said Mr. Niazi. “Reforms need to be more widely implemented at the level of local government units, since they support the development process and are important in pursuing sustained growth and reducing poverty.”
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