LGU consolidation and declining unemployment

Last Friday, Feb. 6, the 4th Ruperto P. Alonzo UP School of Economics - Program in Development Economics annual memorial lecture was held at the UP School of Economics (UPSE) in Diliman, Quezon City.

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The main speaker was Department of Budget and Management (DBM) Acting Secretary Rolando Toledo and the two discussants were UPSE Prof. Cielo Magno and Congressional Policy and Budget Research Department (CPRBD) head Romulo Emmanuel “Jun” Miral, Jr.

Mr. Toledo discussed the various reforms that the DBM has started and is continuing so that there will be more transparency and accountability in budget planning to disbursement, including the use of blockchain to control corruption and help achieve fiscal consolidation.

Mr. Magno mentioned the big increase in unprogrammed appropriations under the current administration that even bumped off counterpart funding for foreign assisted projects.

Mr. Miral discussed the Philippines’ high number of local government units (LGUs) and their overlapping functions with National Government agencies, leading to legislators raiding national revenues for local projects that contributed to the flood control corruption and related scandals.

I particularly like the two slides he showed, which I integrated into one of the tables accompanying this piece. The Philippines has the greatest number of first-tier LGUs, meaning there are many local politicians (governors, city mayors, vice-governors, vice-mayors, and provincial and city councilors).