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Measuring Fiscal Decentralization in the Philippines

Author

Listed:
  • Uchimura, Hiroko
  • Suzuki, Yurika

Abstract

This paper focuses on the fiscal decentralization in the Philippines after the 1991Local Government Code. It first examines the intergovernmental fiscal relationshipbetween central and local governments by using fiscal decentralization indicators,and then investigates its impact on local finance. After fiscal decentralization, thelocal expenditure responsibility is expanded while the local fiscal capacity is notstrengthened in the Philippines. Local governments consequently comes to dependheavily on fiscal transfers from the central government, internal revenue allotments(IRAs), which has a substantial influence on local finance. The heavy dependence onIRAs makes local finance unpredictable and unstable. The distribution of IRAs alsoaffects the horizontal balance between provincial governments.

Suggested Citation

  • Uchimura, Hiroko & Suzuki, Yurika, 2009. "Measuring Fiscal Decentralization in the Philippines," IDE Discussion Papers 209, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    • Handle: RePEc:jet:dpaper:dpaper209
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    File URL: https://ir.ide.go.jp/?action=repository_action_common_download&item_id=37960&item_no=1&attribute_id=22&file_no=1
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    Citations

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    Cited by:

    1. Tugrul Gurgur, 2016. "Voice, exit and local capture in public provision of private goods," Economics of Governance, Springer, vol. 17(4), pages 397-424, November.
    2. Layug, Allan S., 2009. "Triangulation Framework for Local Service Delivery," Discussion Papers DP 2009-37, Philippine Institute for Development Studies.
    3. Gilberto M. Llanto, 2012. "The Assignment of Functions and Intergovernmental Fiscal Relations in the Philippines Twenty Years after Decentralization," UP School of Economics Discussion Papers 201205, University of the Philippines School of Economics.

    More about this item

    Keywords

    Fiscal Decentralization; Fiscal Decentralization Indicators; Horizontal Balance; The Philippines; Philippines; Decentralization; Local Finance;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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