Gems in LGU Fiscal Management : a Compilation of Good Practices

Recognizing that the lack of financial resources to support the provision of basic services and to fund local development plans is a critical concern at the local level to attain improvements in key human development outcomes, the paper discusses the different sources of LGU revenues, both traditional and non-traditional. Moreover, the study presents corresponding issues (e.g., complex tax structures) that hamper efficient revenue generation/mobilization and at the same time emphasizes that there is some scope for local initiative and for some LGUs to do better than others by presenting examples of good practices which show innovative ways of some LGUs to overcome these hurdles. From here, a menu of policy actions that is aimed at enhancing not just LGU revenue generation and mobilization but also strategic allocation was drawn.