Catanduanes Forum

This is a press release from the National Economic Development Authority. Read on...
------
6/25/2007 10:30:02 AM

NEDA CHIEF: WE NEED TO CAPACITATE THE PROVINCES

Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) director-general Romulo L. Neri stressed the importance of assisting the provinces in coming up with development programs and plans.

He spoke during the final meeting of the project steering committee (PSC) of the NEDA-Asian Development Bank Technical Assistance (NEDA-ADB TA) on Strengthening Provincial and Local Planning and Expenditure Management held recently at the ADB Headquarters, Mandaluyong City.

“The province is in a very strategic position to give that big push that would fast-track the attainment of our national development objectives. Indeed, national government is increasingly relying on local governments, especially provinces, to provide basic services, to facilitate local economic development, and to address poverty,” Neri said.

With decentralization, the NEDA chief explained, provinces are given increased authority and more responsibility to plan and finance specific programs and projects.

Thus, under the ADB-sponsored TA, NEDA developed the Guidelines on Provincial/Local Planning and Expenditure Management, which the provinces could use when preparing their provincial plan, investment program, financing plan, and feasibility studies of major programs and projects.

An important by-product of the NEDA-ADB TA is the joint memorandum circular (JMC) issued by NEDA and the Departments of Interior and Local Government, Finance, and Budget and Management on the harmonization of local planning, investment programming, revenue administration and budgeting and expenditure management.

“The JMC may be considered a landmark issuance since it institutionalizes the planning-investment programming-revenue administration-budgeting linkage at the local level,” Neri added.

Within the context of the JMC, NEDA is set to assist provinces in producing the actual provincial outputs under Phase 2 of the ADB-sponsored TA, which will commence in early 2008.

This phase is expected to further improve governance at the provincial level, particularly in the provinces’ choices in public spending and supervision over cities and municipalities. Also at the meeting, ADB Country Director Tom Crouch echoed the need of the local government to be equipped for planning and budgeting.

“Stronger local governments mean a more resilient and competitive Philippines. This means more rapid process on poverty reduction and allowing everyone to experience a life beyond basic survival,” he said.

Crouch added that apart from the technical assistance, ADB’s program include significant loan and grant support for enhancing decentralization and strengthening local government capacity to deliver on their mandates.###