WORKING GROUP ON DE WORKING GROUP ON DE CE CE NT NT RAL RAL IZAT IZAT ION AND L ION AND L OCAL OCAL GOVE RNME NT GOVE RNME NT PROGRE SS RE PORT ON T HE PROGRE SS RE PORT ON T HE ACT IVIT IE S OF T HE WORKING ACT IVIT IE S OF T HE WORKING GROUP ON DE CE NT RAL IZAT ION GROUP ON DE CE NT RAL IZAT ION AND L OCAL GOVE RNME NT AND L OCAL GOVE RNME NT Assista nt Se c re ta ry Auste re A. Pa na de ro L e a d Conve ne r Presentatio n at the Dialo gue o f the Wo rking Gro up o n Dec entralizatio n and L o c al Go vernment with the Central Philippines Go verno rs Oc to be r 19, 2006, Parklane I nternatio nal Ho te l, Ce bu City
Obje c tive s of the Dia log ue � Informa tion � Informa tion- - sha ring on the a c tivitie s of the sha ring on the a c tivitie s of the PDF Working Group on De c e ntra liza tion a nd PDF Working Group on De c e ntra liza tion a nd L oc a l Gove rnme nt, pa rtic ula rly on loc a l L oc a l Gove rnme nt, pa rtic ula rly on loc a l g ove rnme nt fina nc e a nd c a pa c ity building g ove rnme nt fina nc e a nd c a pa c ity building � Introduc e prog ra ms/ proje c ts of the � Introduc e prog ra ms/ proje c ts of the de ve lopme nt pa rtne rs de ve lopme nt pa rtne rs � Ide ntify possible a re a s of a ssista nc e for the � Ide ntify possible a re a s of a ssista nc e for the inve stme nt prog ra ms of Ce ntra l Philippine s inve stme nt prog ra ms of Ce ntra l Philippine s L GUs L GUs
Working Group Working Group Working Group on Growth & Working Group on Growth & on Minda na o on Minda na o Inve stme nt Inve stme nt Clima te Clima te Working Group Working Group Working Working on Susta ina ble on Susta ina ble Group on Group on Philippine Rura l Rura l Philippine Soc ia l Prog re ss Soc ia l Prog re ss De ve lopme nt De ve lopme nt De ve lopme nt De ve lopme nt F orum F orum Working Group Working Group Working Group Working Group on Gove rna nc e on Gove rna nc e on E on E c onomic & c onomic & Working Group on Working Group on & Anti- - Corruption Corruption F isc a l Re forms & Anti F isc a l Re forms De c e ntra liza tion De c e ntra liza tion & L & L oc a l oc a l Gove rnme nt Gove rnme nt
2006 PDF Obje c tive s/ Goa ls for the WG on 2006 PDF Obje c tive s/ Goa ls for the WG on De c e ntra liza tion & L oc a l Gove rnme nt De c e ntra liza tion & L oc a l Gove rnme nt Themes Goals Themes Goals Create a more positive environment for financing LGU activities through consistency in policy implementation, L OCAL GOVE RNME NT improvement in environment for LGU financing, formulation F INANCE of new policies that will provide greater flexibility in accessing financing & promote greater accountability & performance CAPACIT Y Build the momentum for harmonizing capacity building efforts through more focused interventions, greater coverage BUIL DING and more cost-effective and innovative delivery mechanisms Expand the utilization of performance monitoring systems by PE RF ORMANCE providing incentives to LGUS for their use and to encourage good performance and instituting measures to improve the BE NCHMARKING integrity and credibility of the performance measures Further support policies of devolution & rationalization through a thorough assessment of the RP devolution experience and the conduct of capacity building programs for POL ICY RE F ORMS DILG, DOF, the LGU Leagues and other concerned agencies which oversee the devolution process
Ke y Re form Are a s in L oc a l Gove rnme nt F ina nc e � Built c onse nsus be twe e n the NG & � Built c onse nsus be twe e n the NG & the L GUs, throug h the L e a g ue s, on a the L GUs, throug h the L e a g ue s, on a c ommon priority a g e nda to promote c ommon priority a g e nda to promote loc a l g ove rnme nt fina nc e loc a l g ove rnme nt fina nc e � Improve d polic y e nvironme nt for � Improve d polic y e nvironme nt for re sourc e mobiliza tion re sourc e mobiliza tion � ICC re � ICC re - - a ffirme d 50 a ffirme d 50- - 50 NG 50 NG - - L L GU c ost GU c ost sha ring a rra ng e me nt sha ring a rra ng e me nt
Ke y Re form Are a s in L oc a l Gove rnme nt F ina nc e � Addre sse d c onc e rns re : e nsuring tha t the � Addre sse d c onc e rns re : e nsuring tha t the sha re of L GUs in re sourc e s is prote c te d sha re of L GUs in re sourc e s is prote c te d � Inc lusion by DBM of a proposa l in the 2006 � Inc lusion by DBM of a proposa l in the 2006 a nd 2007 Na tiona l E xpe nditure Prog ra m to a nd 2007 Na tiona l E xpe nditure Prog ra m to e sta blish a trust fund in the BIR to e na ble e sta blish a trust fund in the BIR to e na ble dire c t re mitta nc e of L GU sha re in mining ta xe s dire c t re mitta nc e of L GU sha re in mining ta xe s � Inc lusion in the 2006 supple me nta l budg e t of: � Inc lusion in the 2006 supple me nta l budg e t of: - a rre a ra g e s re pre se nting unre mitte d sha re s - a rre a ra g e s re pre se nting unre mitte d sha re s to L GUs of na tiona l we a lth a mounting to to L GUs of na tiona l we a lth a mounting to P670M from 1997 to 2003 P670M from 1997 to 2003 - diffe re nc e be twe e n the IRA a nd re e na c te d - diffe re nc e be twe e n the IRA a nd re e na c te d le ve ls of IRA a mounting to P14.8B le ve ls of IRA a mounting to P14.8B
Ke y Re form Are a s in L oc a l Gove rnme nt F ina nc e � Alig ne d a nd ha rmonize d donor support to promote � Alig ne d a nd ha rmonize d donor support to promote re forms in loc a l g ove rnme nt fina nc e re forms in loc a l g ove rnme nt fina nc e � Inc lude d importa nt L � Inc lude d importa nt L GU issue s in donor initia tive s GU issue s in donor initia tive s � Re vie w of the re le a se proc e dure s for spe c ia l sha re s of L � Re vie w of the re le a se proc e dure s for spe c ia l sha re s of L GUs in GUs in na tiona l we a lth, na tiona l we a lth, e c ozone s e c ozone s, VAT , VAT a nd toba c c o e xc ise ta xe s a nd toba c c o e xc ise ta xe s - - ADB T A 4778 ADB T A 4778 � Re vie w of issue s re : bond flota tion � Re vie w of issue s re : bond flota tion - - ADB T ADB T A 4556 A 4556 � Re vie w of the a pplic a tion of proc ure me nt la w to L � Re vie w of the a pplic a tion of proc ure me nt la w to L GUs – – ADB ADB GUs 4778 4778 � Imple me nta tion of � Imple me nta tion of NGAs NGAs- - ADB 4778 ADB 4778 � E � E xplore d innova tive fina nc ing options to a ddre ss the ne e ds xplore d innova tive fina nc ing options to a ddre ss the ne e ds of L GUs of L GUs � L � L GU borrowing without sove re ig n g ua ra nte e GU borrowing without sove re ig n g ua ra nte e � Pe rforma nc e � Pe rforma nc e - - ba se d g ra nts ba se d g ra nts
Ke y Re form Are a s in Ca pa c ity Building a nd Pe rforma nc e Be nc hma rking � DBM, NE � DBM, NE DA, DIL G, DOF (in c onsulta tion with L GU L e a g ue s) DA, DIL G, DOF (in c onsulta tion with L GU L e a g ue s) pre se ntly dra fting Joint Me mora ndum Circ ula r tha t will pre se ntly dra fting Joint Me mora ndum Circ ula r tha t will ha rmonize pla nning a nd budg e ting proc e sse s a t the L ha rmonize pla nning a nd budg e ting proc e sse s a t the L GU GU le ve l le ve l � e .g . sync hroniza tion of pla nning a nd budg e ting c a le nda rs, � e .g . sync hroniza tion of pla nning a nd budg e ting c a le nda rs, stre a mlining of pla nning a nd budg e ting pr oc e sse s stre a mlining of pla nning a nd budg e ting pr oc e sse s � Ha rmonizing c a pa c ity building polic ie s, stra te g ie s, a nd � Ha rmonizing c a pa c ity building polic ie s, stra te g ie s, a nd tools on re ve nue mobiliza tion a nd fina nc ia l ma na g e me nt tools on re ve nue mobiliza tion a nd fina nc ia l ma na g e me nt � � e .g . tra ining ma nua ls/ module s, de live ry syste ms e .g . tra ining ma nua ls/ module s, de live ry syste ms � De ve loping a c rite ria for the c hoic e of L � De ve loping a c rite ria for the c hoic e of L GUs for pilot te sting GUs for pilot te sting a nd prioritiza tion a nd prioritiza tion � De ve lope d Sta te of Gove rna nc e ( � De ve lope d Sta te of Gove rna nc e (Citie s Citie s) Re port ) Re port
F a c ilita te d Informa tion Sha ring on L GU Ma tte rs � De ve lope d a se pa ra te we bsite on � De ve lope d a se pa ra te we bsite on L GU ma tte rs (www.lg uph.org www.lg uph.org ) to ) to L GU ma tte rs ( c omple me nt PDF WG we bsite c omple me nt PDF WG we bsite (www.pdf.ph www.pdf.ph) ) ( � Pre pa re d the ma ide n issue of the � Pre pa re d the ma ide n issue of the Working Group ne wsle tte r Working Group ne wsle tte r
Ke y Que stions for Disc ussion � Sc a ling up (c a pa c ity building a nd � Sc a ling up (c a pa c ity building a nd fina nc ing ) fina nc ing ) � Ma ximizing be ne fits of a ssista nc e ; � Ma ximizing be ne fits of a ssista nc e ; e ffe c tive utiliza tion to a tta in e ffe c tive utiliza tion to a tta in de ve lopme nt g oa ls (e .g . de ve lopme nt g oa ls (e .g . inve stme nts) inve stme nts)
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