Recent Philippine budget reforms: separating the chaff from the grain, the whimsical from the real

Abstract

The budget rules enshrined in the Philippine Constitution are fiscally sound. When adhered to they make budget deficits easier to manage. Many policymakers, however, have chosen to ignore these rules. On the long list of budget reforms proposed in the past quarter-century, two emerge as real game changers: the Fiscal Responsibility Act and the Results-Based Multiyear Budget Framework, both of which require legislation. An important reform not on the list, however, is the proposal to limit the president’s power to defer, rescind, or reserve expenditure of appropriations authorized by Congress. This is a major challenge in a country where the president is strong while Congress is weak. 

JEL:H610