The Local Government Financing and Budget Reform (LGFBR) program cluster was a part of the capacity building and reform programs being undertaken by the local governments in the Philippines since the enactment of the Local Government Code of 1991. Before the LGFBR program, a number of local government units (LGUs) had been performing well. Yet, to sustain poverty reduction, the country needed a more robust economic development and higher level
public sector performance at the local level.
Reforms at the local level were needed to attain (i) clearer and more streamlined expenditure assignments between national government agencies and LGUs; (ii) wider alternatives for mobilizing LGU resources; (iii) increased capacity of LGUs in financial management (including budgeting and tax administration); (iv) better structures, procedures, and information systems for national government agencies to exercise their mandated oversight of LGU activities; and (v) a stronger legal and institutional framework for decentralization.
This report validates the completion report’s assessment of the project. IED overall assessment: Successful.