MPFD Working Paper on Philippine (Metro Manila) Case Study on Municipal Financing

Working paper13 Mar 2019

This study aims to understand how public financing is carried out in Metropolitan (Metro) Manila by examining governance structures and institutional mandates in revenue mobilization. Metro Manila, also known as the National Capital Region (NCR), is the center of economic, political and educational power (Department of Trade and Industry n.d.) and is comprised of 16 cities and 1 municipality. These local government units (LGUs) have revenue raising and spending authority and autonomy as provided in the 1991 Local Government Code (LGC). At the same time these LGUs are under the jurisdiction of the Metropolitan Manila Development Authority (MMDA). This metropolitan governance structure is a public corporation that coordinates development plans, policies and reforms across all the member sub-national governments. The last chapter of this paper analyzes current local public finance reform efforts as well as explores other possible options.