ADB starts review of PHL Local Government Code

THE ASIAN Development Bank (ADB) is partnering with the Philippine government for the review of the country’s Local Government Code (LGC).

The review formally kicked off yesterday in Manila, according to the lender’s Web site.

In an e-mail interview, ADB Senior Public Management Specialist Juan Luis Gomez said: “ADB assists in the review of the LGC with technical assistance in the form of national and international experts to lead the government-led review of the code.”

“It also provides financial assistance to conduct national and local level consultations on the necessary amendments of the code,” Mr. Gomez added.

The ADB approved a $250-million loan to support the government-led review of the LGC in February this year.

“The review is the centerpiece of a $250 million loan approved in February 2014 by the Board of Directors of the ADB in support of local government finance and fiscal decentralization reforms in Philippines,” Mr. Gomez explained.

“The review was requested at the Philippines Development Forum in 2013 and was incorporated into the work plan of the Cabinet Cluster on Good Governance and Anti-Corruption for 2013-2015,” he added.

Mr. Gomez said the review is focused on the “fiscal aspects” of the LGC.“As such, amendments will be proposed on the areas of local government expenditure (what services local governments should deliver), own revenue sources (local government units’ (LGUs) tax and fees and charges), transfers from the national government to LGUs (including the internal revenue allotment and shared revenues), and LGU borrowing.”

“The review will also look at proposals to encourage inter-local cooperation and will propose changes to the requirements in the code for new LGU formation,” he added.

Mr. Gomez heads the ADB team tasked to review the LGC.

“Undersecretary Austere [A.] Panadero and Director Anna [F.] Bonagua of the Department of Interior and Local Government provide guidance and leadership to the technical review team,” Mr. Gomez added.

Mr. Gomez said position papers that include specific amendments to the code and its implementing regulations are expected to be ready by October.

The said position papers will include inputs obtained from consultations with all stakeholders, like the national government, LGU leagues, civil society organizations, the academe, and development partners.

It will also include earlier local government reform proposals and new research conducted by the team. -- BCPB
 
source:  Businessworld