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On the cusp of budget transformation: the work for an inclusive budget process under the Aquino administration

Author

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  • Florencio B. Abad

    (Department of Budget and Management)

Abstract

The revelation of massive abuses of Òpork barrelÓ funds hasÊfocused public attention on the budget process and the use of publicÊfunds more generally. This paper locates the source of abuse in theÊcountryÕs weak and extractive political institutions, especially inÊthe wider environment of patronage politics. Machinations usedÊto despoil the Budget in the pastÑthrough Òpork barrelÓ funds,Êreenacted budgets, congressional insertions, and the MalampayaÊtrust fund, among othersÑare described and explained, with someÊdetails of their magnitudes provided. On the other hand, previousÊand ongoing initiatives undertaken by the Aquino administrationÊto reform the budget process are explained. Present and plannedÊreforms emphasize inclusion through transparency and widerÊcitizensÕ participation, as well as through improvements inÊgovernment rules and procedures. Ultimately, the recent scandalsÊare a welcome development that amplifies popular support forÊongoing reforms in the budget process and encourages reformmindedÊsections of government to take even bolder steps.

Suggested Citation

  • Florencio B. Abad, 2014. "On the cusp of budget transformation: the work for an inclusive budget process under the Aquino administration," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 51(1), pages 28-59, June.
    • Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:28-59
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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/902/802
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    References listed on IDEAS

    as
    1. Raul V. Fabella, 2013. "State capacity, stakeholder buy-in, and collective action problems: the budget allocation case," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 50(2), pages 28-36, December.
    2. World Bank, 2010. "Philippines : Public Expenditure and Financial Accountability," World Bank Publications - Reports 2880, The World Bank Group.
    3. Balisacan, Arsenio M. & Hill, Hal (ed.), 2003. "The Philippine Economy: Development, Policies, and Challenges," OUP Catalogue, Oxford University Press, number 9780195158984.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    budget process; budget reform; Òpork barrelÓ funds; inclusive and extractive institutions;
    All these keywords.

    JEL classification:

    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • B25 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Historical; Institutional; Evolutionary; Austrian; Stockholm School

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