On the cusp of budget transformation: the work for an inclusive budget process under the Aquino administration

Florencio B. Abad
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Florencio B. Abad: Department of Budget and Management

Philippine Review of Economics, 2014, vol. 51, issue 1, 28-59

Abstract: The revelation of massive abuses of Òpork barrelÓ funds hasÊfocused public attention on the budget process and the use of publicÊfunds more generally. This paper locates the source of abuse in theÊcountryÕs weak and extractive political institutions, especially inÊthe wider environment of patronage politics. Machinations usedÊto despoil the Budget in the pastÑthrough Òpork barrelÓ funds,Êreenacted budgets, congressional insertions, and the MalampayaÊtrust fund, among othersÑare described and explained, with someÊdetails of their magnitudes provided. On the other hand, previousÊand ongoing initiatives undertaken by the Aquino administrationÊto reform the budget process are explained. Present and plannedÊreforms emphasize inclusion through transparency and widerÊcitizensÕ participation, as well as through improvements inÊgovernment rules and procedures. Ultimately, the recent scandalsÊare a welcome development that amplifies popular support forÊongoing reforms in the budget process and encourages reformmindedÊsections of government to take even bolder steps.

Keywords: budget process; budget reform; Òpork barrelÓ funds; inclusive and extractive institutions (search for similar items in EconPapers)
JEL-codes: B25 H61 (search for similar items in EconPapers)
Date: 2014
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