Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review

Farm-to-market roads (FMRs) provide ‘last kilometer’ connectivity for bringing inputs to farmers and taking their production to distant markets. The quality and quantity of these roads has a big impact on transport costs for farmers; good roads clo...

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Main Author: World Bank
Format: Report
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/undefined/988401632720737734/Mandanas-Ruling-and-Potential-Implications-for-the-Farm-to-Market-Road-Development-Program-A-Public-Expenditure-Review
http://hdl.handle.net/10986/36337
id okr-10986-36337
recordtype oai_dc
spelling okr-10986-363372021-10-13T05:10:48Z Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review World Bank RURAL ROADS FARM-TO-MARKET ROADS SUBNATIONAL EXPENDITURE PUBLIC EXPENDITURE REVIEW DECENTRALIZATION TRANSPORT INFRASTRUCTURE TRADE LOGISTICS Farm-to-market roads (FMRs) provide ‘last kilometer’ connectivity for bringing inputs to farmers and taking their production to distant markets. The quality and quantity of these roads has a big impact on transport costs for farmers; good roads close to farms lower production costs and raise the prices that farmers get for their products. As part of the government’s ‘Build, Build, Build’ initiative, the Department of Agriculture (DA) has accorded FMRs high priority and has invested heavily in recent years in roads to enhance accessibility and trigger economic activity in remote agricultural areas. In recent years (2019–21), FMR projects received about 18 percent of the DA’s total budget. FMR construction is also a component of several special projects. For instance, under locally funded projects, total constructed FMRs as of 2017 have reached 392 km, while foreign-assisted projects have built an estimated 2,072 km as of December 2017. The World Bank was requested to carry out a rapid Public Expenditure Review (PER) focusing on the DA FMR Development Program. While this exercise would be useful under any circumstances, it is especially timely in view of the ‘Mandanas ruling’ of the Supreme Court. This ruling requires the central government to increase the Internal Revenue Allotment (IRA), the share of government tax revenue going to the Local Government Units (LGUs), starting in 2022. Since it will be sharing more revenue with the LGUs, the central government intends to devolve more responsibilities to them for administering and funding projects and programs. Exactly how this devolution will affect the FMR Development Program is yet to be precisely defined, and the PER is intended to help plan this process. 2021-10-12T15:16:21Z 2021-10-12T15:16:21Z 2021-06 Report http://documents.worldbank.org/curated/undefined/988401632720737734/Mandanas-Ruling-and-Potential-Implications-for-the-Farm-to-Market-Road-Development-Program-A-Public-Expenditure-Review http://hdl.handle.net/10986/36337 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work Economic & Sector Work :: Public Expenditure Review East Asia and Pacific Philippines
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic RURAL ROADS
FARM-TO-MARKET ROADS
SUBNATIONAL EXPENDITURE
PUBLIC EXPENDITURE REVIEW
DECENTRALIZATION
TRANSPORT INFRASTRUCTURE
TRADE LOGISTICS
spellingShingle RURAL ROADS
FARM-TO-MARKET ROADS
SUBNATIONAL EXPENDITURE
PUBLIC EXPENDITURE REVIEW
DECENTRALIZATION
TRANSPORT INFRASTRUCTURE
TRADE LOGISTICS
World Bank
Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
geographic_facet East Asia and Pacific
Philippines
description Farm-to-market roads (FMRs) provide ‘last kilometer’ connectivity for bringing inputs to farmers and taking their production to distant markets. The quality and quantity of these roads has a big impact on transport costs for farmers; good roads close to farms lower production costs and raise the prices that farmers get for their products. As part of the government’s ‘Build, Build, Build’ initiative, the Department of Agriculture (DA) has accorded FMRs high priority and has invested heavily in recent years in roads to enhance accessibility and trigger economic activity in remote agricultural areas. In recent years (2019–21), FMR projects received about 18 percent of the DA’s total budget. FMR construction is also a component of several special projects. For instance, under locally funded projects, total constructed FMRs as of 2017 have reached 392 km, while foreign-assisted projects have built an estimated 2,072 km as of December 2017. The World Bank was requested to carry out a rapid Public Expenditure Review (PER) focusing on the DA FMR Development Program. While this exercise would be useful under any circumstances, it is especially timely in view of the ‘Mandanas ruling’ of the Supreme Court. This ruling requires the central government to increase the Internal Revenue Allotment (IRA), the share of government tax revenue going to the Local Government Units (LGUs), starting in 2022. Since it will be sharing more revenue with the LGUs, the central government intends to devolve more responsibilities to them for administering and funding projects and programs. Exactly how this devolution will affect the FMR Development Program is yet to be precisely defined, and the PER is intended to help plan this process.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
title_short Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
title_full Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
title_fullStr Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
title_full_unstemmed Mandanas Ruling and Potential Implications for the Farm-to-Market Road Development Program : A Public Expenditure Review
title_sort mandanas ruling and potential implications for the farm-to-market road development program : a public expenditure review
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/undefined/988401632720737734/Mandanas-Ruling-and-Potential-Implications-for-the-Farm-to-Market-Road-Development-Program-A-Public-Expenditure-Review
http://hdl.handle.net/10986/36337
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