2003年-世界发展银行全球_Philippines_-_Improving_Government_Performance___Discipline_Efficiency_and_Equity_in_Managing_Public_Resources_221页_14mb

Summary of Report No. 24256-PH: Improving Government Performance in the Philippines

Core Content

This report, Improving Government Performance: Discipline, Efficiency and Equity in Managing Public Resources, is a joint effort by the Government of the Philippines (GOP), the World Bank, and the Asian Development Bank (ADB). It provides a comprehensive review of public expenditure, procurement, and financial management in the Philippines, focusing on fiscal discipline, allocative efficiency, and operational efficiency.

Main Objectives

• To assess the performance of the Philippine government in managing public resources.
• To identify challenges and recommend improvements in fiscal, procurement, and financial management practices.
• To support the government in achieving greater efficiency, equity, and sustainability in public resource management.

Key Themes

Fiscal Discipline

• Fiscal Context: The report highlights the importance of aligning the government's fiscal policy with its institutional capabilities.
• Fiscal Performance: In 2002, the National Government deficit increased sharply, reaching PhP213 billion (5.3% of GDP), surpassing the original target of PhP130 billion. The consolidated public sector deficit reached 7.2% of GDP.
• Revenue Trends: Tax revenue remained stable in nominal terms but declined in real terms. Tax effort fell to 12.4% of GDP in 2002 from 17% in 1997.
• Expenditure Trends: National Government expenditures exceeded targets by PhP24 billion in 2002. The wage bill and mandated expenditures formed a significant part of total spending.
• Recommendations: The report calls for adherence to the 2003 deficit target, restoring real value of excise taxes, and strengthening tax administration.

Allocative Efficiency

• Economic Composition of Spending: The report analyzes how public spending is distributed across sectors such as agriculture, education, and health.
• Allocative Distortions: It identifies inefficiencies in resource allocation, including concentration of growth in lightly taxed sectors and the impact of tax incentives.
• Recommendations: The need for more efficient and equitable resource allocation, better planning, and improved budgeting mechanisms is emphasized.

Operational Efficiency

• Procurement Regime: The report discusses the need for modernizing legal and institutional frameworks for procurement, including the introduction of electronic procurement systems (EPS).
• Financial Management: It outlines the importance of improving financial accountability, internal and external audit practices, and the implementation of the New Government Accounting System (NGAS).
• Wage Bill Control: The report highlights the need for controlling public sector employment and compensation, with a focus on reducing discretionary spending.
• Recommendations: Strengthening the procurement process, enhancing financial management systems, and implementing effective wage bill controls are recommended.

Decentralization

• Intergovernmental Finances: The report examines the financial relationship between the national government and local government units (LGUs).
• Service Delivery: It emphasizes the importance of improving service delivery through better financial and institutional management at the local level.
• Recommendations: Enhancing revenue administration, human resource management, and financial oversight at the LGU level is suggested.

Foreign-Assisted Projects

• Implementation Challenges: The report notes the need for improving the absorptive capacity of the government to manage foreign-assisted projects effectively.
• Project Financing: It recommends increasing the predictability of project financing and ensuring the sustainability of project outcomes.
• Recommendations: Rationalizing implementation arrangements and improving project identification and preparation are key areas for improvement.

Key Recommendations

• Fiscal Consolidation: Adhere to the 2003 deficit target of PhP202 billion (4.7% of GDP).
• Tax Reform: Restore the real value of excise taxes to 1997 levels, index them for inflation, and improve tax administration.
• Procurement Reform: Implement the new Procurement Law, promote electronic procurement, and strengthen civil society oversight.
• Financial Management: Adopt the New Government Accounting System (NGAS), enhance internal and external audit processes, and improve financial accountability.
• Wage Bill Control: Implement personnel information systems and reduce discretionary spending.
• Decentralization: Strengthen financial and institutional management at the LGU level, including revenue administration and human resource management.
• Foreign-Assisted Projects: Enhance project identification, preparation, and implementation arrangements to ensure sustainability and predictability.
• Anti-Money Laundering (AML): Implement the amended AML Act to align with international standards and improve financial transparency.

Important Context and Data

• Currency: Philippines Peso (PhP), with an exchange rate of PhP52.8 as of April 30, 2003.
• Fiscal Year: January 1 to December 31.
• Fiscal Deficit: Increased to PhP213 billion in 2002, up from PhP147 billion in 2001.
• Tax Revenue: Declined in real terms, with tax effort at 12.4% of GDP in 2002.
• Procurement Reform: The Procurement Reform Law was enacted in December 2002.
• NGAS Implementation: The Commission on Audit initiated a phased implementation of the new government accounting system in 2002.
• AML Act: Amended in March 2003 to meet FATF standards, but the Philippines remains on the FATF list of non-cooperating countries until effective implementation is demonstrated.

Conclusion

The report underscores the need for continued collaboration between the Philippine government, the World Bank, and the Asian Development Bank to improve fiscal, procurement, and financial management practices. It emphasizes the importance of institutional reforms, policy coherence, and enhanced transparency in public resource management to achieve sustainable economic growth and poverty reduction.