Fiscal Decentralization : a review and assessment of its impact on the capability of Marikina City and Bulacan Province to provide basic social services.

Abstract

The Local Government Code of 1991 is one of the boldest and most progressive laws passed in the Philippines. By initiating devolution in the country, this Code forever changed the landscape of Philippine local governance. The role of local government units (LGUs) expanded as certain functions of the national government were transferred to them. Among the powers granted by the Local Government Code to LGUs is public fiscal administration. In the process of public fiscal decentralization, the local governments were given a wide range of fiscal powers together with an expanded scope of expenditure responsibilities. In this study, the researcher aims to conduct an in-depth analysis of the impact of fiscal decentralization to local governments’ delivery of basic social services. The researcher will investigate the flaws of the Internal Revenue Allotment (IRA) distribution, correlate poverty statistics with the GDP of the Philippines, and conduct a survey assessing local governments’ performance. Afterwards, positive and negative effects of fiscal decentralization will be weighed for discussion. Results of these investigations will be indicative of how fiscal decentralization affected the system of local governance in the Philippines. Upon completion, this research would help further one’s understanding of the consequences of fiscal decentralization in the Philippines and contribute to future research on similar topic.