## Increasing Public Sector Revenue in the Philippines: Equity and Efficiency Considerations

_IMF Working Papers, January 1, 2005_

## Source details

**Canonical URL:** [Increasing Public Sector Revenue in the Philippines: Equity and Efficiency Considerations](https://www.imf.org/en/publications/wp/issues/2016/12/31/increasing-public-sector-revenue-in-the-philippines-equity-and-efficiency-considerations-17948)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/increasing-public-sector-revenue-in-the-philippines-equity-and-efficiency-considerations-17948/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/increasing-public-sector-revenue-in-the-philippines-equity-and-efficiency-considerations-17948/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/increasing-public-sector-revenue-in-the-philippines-equity-and-efficiency-considerations-17948/bundle-manifest.json)

## Bibliographic details
- Authors: Kevin Fletcher
- Published: January 1, 2005
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451860412.001

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### Summary
- Public sector revenue has declined markedly in the Philippines over the past seven years.
- Rebuilding public sector revenue is critical to reducing deficits and ensuring public sector debt sustainability.
- The paper reviews several main possibilities for raising public sector revenue, including increases in excise, VAT, and electricity rates.
- The analysis argues that most of these proposals would raise revenue in a relatively efficient manner.
- Using household-level expenditure data, the paper finds that most of these measures would be progressive, especially if they allow the government to avoid cuts in pro-poor spending.

### Key Findings
- Revenue decline: public sector revenue has declined markedly over the past seven years (no numeric magnitude provided on the page).
- Efficiency: most proposed measures (excise, VAT, electricity rate increases) would raise revenue in a relatively efficient manner.
- Distributional impact: using household-level expenditure data, most measures would be progressive, particularly when they prevent cuts in pro-poor spending.

### Policy Options Reviewed
- Increased excise rates.
- Increased VAT rates.
- Increased electricity rates.
- Consideration of interactions with pro-poor public spending to preserve progressivity.

### Equity and Efficiency Considerations
- Equity: household-level expenditure analysis indicates most proposed revenue measures are progressive.
- Efficiency: the measures considered are characterized as relatively efficient revenue-raising options.
- Policy trade-off emphasized: maintaining pro-poor spending enhances the progressive impact of revenue measures.

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## Content in this bundle

- **1. Philippines Revenue Trends, 1997–2003**
  - [1. Philippines Revenue Trends, 1997–2003 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp0522.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Philippines Revenue Trends, 1997–2003 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2005/_wp0522.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/increasing-public-sector-revenue-in-the-philippines-equity-and-efficiency-considerations-17948_