THE WORLD BANK is preparing a $300-million loan for the government designed to improve revenue and spending efficiency.
According to World Bank documents made public on Friday, Country Director for the Philippines Mara K. Warwick approved the Improving Fiscal Management project on Oct. 1, and that the “review did authorize the preparation to continue.”
The project, to be implemented by the Department of Finance, is expected to receive World Bank board approval on Dec. 18.
The multilateral lender said that the loan seeks to provide assistance to increase revenue potential and economic efficiency of tax policy; improve budget planning and execution efficiency of spending; and strengthen financial risk management of public assets.
“This DPL (development policy loan) supports the government’s core objective to strengthen fiscal management by mobilizing higher domestic revenue, improving budget management, and reducing fiscal risks,” read the document.
The loan program includes technical assistance for amending and expanding tax instruments; taking regulatory measures against tax base erosion; improving central government budget reporting; strengthening the predictability of the budget; and implementing a policy for disaster risk financing, including setting up the necessary institutions and risk insurance instruments. — Elijah Joseph C. Tubayan