IMF flags gaps in state spending practices

 

The government is on the right track in ramping up spending, especially on infrastructure, but much remains to be done to improve project planning and implementation, the International Monetary Fund (IMF) said in a May 16 report that was e-mailed to journalists on Wednesday.

The technical assistance report – which resulted from an Aug. 9-22, 2018 mission in the country from the IMF’s Fiscal Affairs Department that was requested by Philippine authorities – gauged public investment management practices against 15 indicators, namely: fiscal target and rules, national and sectoral planning, coordination among entities.

Also included are project appraisal, alternative infrastructure financing, multi-year budgeting, budget comprehensiveness and unity, budgeting for investment, maintenance funding, project selection, procurement, availability of funding, portfolio management and oversight, project management and monitoring of assets.

“Overall, the Philippines has better institutional framework than the average of emerging market economies, including emerging Asia, in the areas of national and social planning, budget comprehensiveness and unity, budgeting for investment, availability of funding, and monitoring of assets in terms of both institutional design and effectiveness,” the report read.



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