Financing the Millennium Development Goals : The Philippines

The improving fiscal situation in the Philippines presents an opportune time for the government to re-assess the resource requirements of achieving the MDGs and to exercise greater vigilance in ensuring that the MDGs benefit from the fiscal space that has been created. In response, this study updated and expanded the earlier study on the financing of MDGs that was completed in 2002. In particular, it estimated the financial requirements needed to achieve Goals 1, 2, 4, 5, 6, and 7; compared the resource requirements with the funding level that is likely to be made available to determine the funding gap for each of these goals under alternative macro and sectoral policy scenarios; taking existing NG-LGU expenditure assignment into account, arrived at a consolidated estimate of total general government resource requirement and resource gap in financing the said MDGs; and proposed how resources can optimally be managed, referring to both operational efficiencies and institutional arrangements, so as to maximize their effectiveness. The estimates obtained from this study highlight the fact that the Philippines cannot afford to be complacent and act as if it is business as usual. It cannot be denied that the policy thrusts embodied in the MTPDP are supportive of the attainment of the Millennium Development Goals. In addition, the government, in general, and many government agencies, in particular, have already started to implement many policies, strategies and programs that are to enhance the achievement of the MDGs. These policies, strategies and programs will have to be sustained or pursued with greater vigor. But beyond this, there is a need for further improvements in other policy areas and institutional arrangements.