Community of Practice on Managing for Development Results (CoP

MfDR)
2007 Annual Meeting and Training Program
22 October - 2 November 2007, Shanghai, China

Strengthening
Provincial/Local Planning and
Expenditure Management in
the Philippines
Susan Rachel G. Jose
Director, Regional Development Coordination Staff
National Economic and Development Authority

 National Government

Local Government Units (LGUs)

81 Provinces
115 Cities
1,510 Municipalities
41,995 Barangays
17 Administrative Regions

1991 Local Government Code

(Decentralization Law)

Increased LGU autonomy to plan,

finance and implement
social and economic services

Devolved
Responsibilities

1991
Local
Government
Code

Increased
Financial Resources

LGU Spending as
Ratio to GNP

Ratio to Government Spending

Net of Debt Services
30

4
3.5

25

20

2.5

15

2
1.5

10

0.5

0
1990 2002

1985- 1992- 19971991 1996 2002

(Average)

1990

2002

1985- 1992- 19971991 1996 2002

(Average)

Questions of Allocative Efficiency

. . . LGU officials do not fare well in predicting
the expenditure preferences of their
constituencies WB-ADB 2001

Provinces

Municipalities

Mismatch in LGU spending

and constituents needs

Poor plan-budget linkage

Plan has no influence on investment decisions and the

budget
Plan lacks linkage with revenue collection and expenditure
management
Large dependence of LGUs on shares from national revenue
thus limited resources to fund projects
Weak linkages of local plans with regional/national plans
Multiplicity of plans and outdated planning guidelines

NEDA-ADB Technical Assistance on Strengthening Provincial/Local Planning

& Expenditure Management
Activities
P
H
A
S
E

Guidelines
Preparation

Five-volume set of
guidelines

Advocacy Training

JMC of Oversight
Agencies
Training of local
functionaries

1
Pre-training briefings/
workshops

P
H
A
S
E

Outputs

Learning-by-doing
workshops

2
Post-training
consultations

Draft PDPFP and

PDIP and CDPs and
CDIPs of component
municipalities and
cities
MOA with LGUs
Refined PDPFP and
PDIP
Initial/draft feasibility
studies
Approved PDPFPs,
PDIPs
Feasibility studies

Outcome

Provincial-municipal
development efforts
are complementary
NG and LGUs
interface in their
development efforts
Provinces and (to
some extent)
municipalities have
improved capacities

Impact

Strengthened
provincial
governance
particularly in the
following areas:
choices in public
spending
supervision over
component LGUs
National/regional
plans reflective of
local aspirations and
priorities

Stages of Transformation

Institutionalization
Consciousness
Building
Stage 1

Capacity
Building

Stage 2

Application

Stage 3

Stage 4

PROVINCIAL/LOCAL PLANNING
EXPENDITURE MANAGEMENT
(PLPEM) GUIDELINES

&

Volume 1: Integrated Framework

Volume 2: Provincial Development and
Physical Framework Plan (PDPFP)
Volume 3: Investment Programming and
Revenue Generation
Volume 4: Tools and Techniques on
Budgeting & Expenditure
Management
Volume 5: Project Evaluation & Development

Planning-Programming-BudgetingImplementation-Monitoring Cycle

Planning

PPAs

Investment
Programming
Revenue
Generation

Implementation,
monitoring and
evaluation

Project Evaluation
and Development

Budgeting
Expenditure
Management

PDIP/
AIP

What do we hope to
achieve?

Synchronized Planning-Programming-Budgeting
Investment
Programming

Planning
MTPDP/
NFPP

Impactand
and
Impact
Information
Information
Base
Base

RDIP
RDIP

Impact
Assessment

AnnualBudget
Budget
Expenditure
Plan
Annual
Expenditure
Plan
Annual
Budget
Expenditure
Plan

PDIP/AIP
PDIP/AIP

C/MDIP
C/MDIP

PPA
PPA
Outcomes
Outcomes

Monitoring

Implementation

Initial Screening and

Prioritization of PPAs

Budgeting and Public

Expenditure Management

Project Evaluation
And Development

Investment
Programming and
Revenue Generation

Realignment

Mid-term Revision

C/MDP/
C/MDP/
CLUP
CLUP

MTEF
National Exp. Plan

MTDIP

RDP/RDFP
RDP/RDFP

PDPFP
PDPFP

Budgeting

PPAs
PPAs

Harmonized efforts of oversight agencies

MTPDP/NFPP

NEDA

MTPDIP

DBM

MTPIP

MTPDP/NFPP

Multi -yr
Annual
budget
expend
plan
National
Disbursement
Expenditure
control
system

Program

PLPEM
Guides

RDP/RPFP
RDP/RPFP

RDIP
RDIP

PDPFP
PDPFP

PDIP/AIP

Additional

PDIP/AIP
sources
of
revenues

DILG
CDP
Manual

City/

C/MDP
Municipal

Development
CLUPs
Plan

City/
LDIP
Municipal
DIP

Budgetary
Issuances

DOF
Annual
budget
Provincial
Disbursement
Expenditure
control
system

Revenue
Generation &
Administration

Program

Annual
budget
City/Municipal
Disbursement
Expenditure
control
system

Program

More responsive planning: emphasis on the planning logic

PLANNING ENVIRONMENT
DRIVERS

SYMPTOMS

Population
Economy
Physical Resources

Income
Services

Percentage distribution of households by type of housing unit

occupied
Housing backlog
Proportion of households who
informal settlers
Proportion of households with
makeshift housing

Land Use
1

PROGRAMS
PROJECTS
ACTIVITIES

DEVELOPMENT
ISSUES/
PROBLEMS

GOALS
OBJECTIVES/
TARGETS

Provide
affordable
Housing for xx
HH in yy areas

STRATEGIES

Lack of affordable
housing
Provide access to new housing sites

INVESTMENT
PROGRAMMING
& BUDGETING

PROGRAMS

PROJECTS/ACTIVITIES

Improve sites/ services in yy areas

New housing road access

program

Access road
construction project

Private sector-led development of

CMP program in yy areas

CMP project in yy areas

Livelihood Program

Skills development
Microfinance

affordable housing
Provide livelihood opportunities

Project wish list is avoided

Development
Goals and
Objectives
from PDPFP

INPUTS

PROCESS

OUTPUTS

Step 1
Establish PDIP
Policies

PDIP Policies

Step 2
Develop and define
Prioritization
Approach

Prioritization
Approach and
Criteria

PPAs from
PDPFP

Step 3
Formalize and rank the
list of development
investment projects
Fully Costed and
Ranked List of
Projects

Without PDIP
Revenue and expenditure
projections using the
Tools and Techniques
for BPEM

Step 4
Analyze the development
Development investment
capacity

Initial Annual Investment

Financing Capacity
Estimates

Step 5
Iteratively develop
the PDIP Financing
Plan and Finalize
the Investment
Schedule

PDIP
Financing Plan
and Investment
Schedule

Step 6
Legally adopt
the PDIP

PDIP

Current year
Slice for
Integration into
Annual Budget

Step 7

Update the PDIP

Updated PDIP

PDIP Process Flow Chart

 and projects are linked with revenue sources

Step 3

Formalize and rank the

list of development
investment projects

Step 4

Analyze the development

Development investment
capacity

Step 5

Fully Costed and

Ranked List of
Projects

Iteratively develop
the PDIP Financing
Plan and Finalize
the Investment
Schedule

Initial Investment
Financing Capacity
Estimates

Equal on
an Annual
Basis?

Finalize PDIP
Financing Plan
and Investment
Schedule

Yes

PDIP Financing
Plan and
Investment
Schedule

No

Identify additional
revenue measures
including revenues
from PDIP

Estimate New
Investment
Financing
Capacity

Additional revenue
measures

New Investment
Financing
Capacity

Process Flow
of the Iterative
Development of
the PDIP Financing
Plan & Schedule

Improved LGU administration

Rationalized planning work
LGU functionaries coordinating with one
another
Provincial-municipal/city complementation
Interface with national government
agencies
Improved LGU capacities

Wider sharing of PLPEM Guidelines

http://cop-mfdr.adb.org go to Rooms select CoP-PLPEM