Philippines - Public Expenditure Review : Strengthening Public Finance for More Inclusive Growth
This Public Expenditure Review analyzes trends in revenues, expenditures and development outcomes over the past 10 years. Its main findings are that, since the late 1990s, the Philippines has been caught in a low-revenue, low-expenditure trap and t...
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| Format: | Public Expenditure Review |
| Language: | English |
| Published: |
World Bank
2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000356161_20111121225449 http://hdl.handle.net/10986/2796 |
| Summary: | This Public Expenditure Review analyzes
trends in revenues, expenditures and development outcomes
over the past 10 years. Its main findings are that, since
the late 1990s, the Philippines has been caught in a
low-revenue, low-expenditure trap and that the current level
of public revenues is not sufficient to close the
development gap between the Philippines and East Asian
comparator countries. The Philippines exhibits similar
efficiency of public expenditures as the regional averages
in public education and public health spending, but low
efficiency in transport. The distribution of revenues,
expenditures and some key development outcomes across
regions in the Philippines is becoming more unequal. Besides
not generating enough revenues to satisfy its development
needs, the Philippines tax system extracts very little
revenue from the top income quintile and is highly
inequitable across sectors and employment categories. The
PER urges the adoption of tax policy measures to increase
the overall revenue envelope as well as expenditures on
education, health conditional cash transfers and,
eventually, infrastructure. It also recommends reforming the
public investment management system as well as the formula
used for distributing intergovernmental fiscal transfers to
include equity considerations. |
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