Date Published:
Jun 01, 2009
Discussion Papers
Focus Area(s):
DP 2009-10

The paper examines the progress being made in local finance reforms and indicates pathways to advance those reforms. A summary of the effects of decentralization is given as a contextual background for the discussion of local finance reforms. The inefficient tax assignment has constrained the mobilization of local tax revenues even as local government units have become very dependent on the intergovernmental fiscal transfer, called the “internal revenue allotment.” The paper raises the importance of revisiting the internal revenue allotment formula. It identifies the local finance reforms currently being undertaken and reports the progress being made at the local and national level. The final section comments on the outstanding issues in local finance reform and gives some recommendations.


This publication has been cited 2 times

In other Publications
  1. Canare, Tristan. 2021. Decentralization and welfare: Theory and an empirical analysis using Philippine data. Public Sector Economics, 45, no. 1, 93-123. Institute of Public Finance.
  2. Fritz, Verena, Brian Levy, and Rachel Ort. 2014. Problem-driven political economy analysis: The World Bank's experience. World Bank Publications - Books, number 16389. The World Bank Group.

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