Fiscal decentralization and revenue mobilization : case of Olongapo City, Philippines

Abstract

This study examines problems encountered in revenue mobilization by the Local Government of Olongapo City under the Philippines fiscal decentralization policy. It documents the revenue generation processes in Olongapo City, analyses the various administrative and procedural roadblocks faced in generating revenue from major local sources, and recommends steps that can be taken to increase local revenues. It concludes that revenue reform and performance at the local level is highly dependent on local administrative, technical and managerial capacity. Developing local capacity in these areas is critical for effective implementation of the broader decentralized fiscal system.