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Measuring Fiscal Decentralization in the Philippines


  • Uchimura, Hiroko
  • Suzuki, Yurika


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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    Cited by:

    1. Layug, Allan S., 2009. "Triangulation Framework for Local Service Delivery," Discussion Papers DP 2009-37, Philippine Institute for Development Studies.

    More about this item


    Fiscal Decentralization; Fiscal Decentralization Indicators; Horizontal Balance; The Philippines; Philippines; Decentralization; Local Finance;

    JEL classification:

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

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