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Revenue Generation - FISCAL DECENTRALIZATION AND REVENUE...

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FISCAL DECENTRALIZATION AND REVENUE MOBILIZATION: CASE OF OLONGAPO CITY, PHILIPPINES by VANDANA SAREEN B.P., Physical Planning School of Planning & Architecture, New Delhi, 1997 Department of Urban Studies and Planning in Partial Fulfillment of the Requirements for the Degree of Masters in City Planning at the Massachusetts Institute of Technology June 2000 © 2000Vandana Sareen. All rights reserved. ROTCH MASSACHUSETTS INSTITUTE OF TECHNOLOGY AUG 0 2 2000 LIBRARIES The author hereby grants to MIT permission to reproduce and to distribute publicly paper and electronic copies of this thesis document in whole or in part. Signature of Author Department of Urban Studies and Planning May 5, 2000 Certified by Associate Professor Paul Smoke Thesis Supervisor Accepted by Associate Professor Paul Smoke Chair, MCP Program Department of Urban Studies and Planning Submitted to the
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FISCAL DECENTRALIZATION AND REVENUE MOBILIZATION: CASE OF OLONGAPO CITY, PHILIPPINES by Vandana Sareen Submitted to the Department of Urban Studies and Planning on May 12, 2000 in Partial Fulfillment of the Requirements for the Degree of Master in City Planning ABSTRACT This study examines problems encountered in revenue mobilization by the Local Government of Olongapo City under the Philippines fiscal decentralization policy. It documents the revenue generation processes in Olongapo City, analyses the various administrative and procedural roadblocks faced in generating revenue from major local sources, and recommends steps that can be taken to increase local revenues. It concludes that revenue reform and performance at the local level is highly dependent on local administrative, technical and managerial capacity. Developing local capacity in these areas is critical for effective implementation of the broader decentralized fiscal system. Thesis Advisor: Paul Smoke Title: Associate Professor of the Practice of Development and Planning
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ACKOWLEGEMENTS My research was made possible by the generous support of MIT and the World Bank. I am grateful to Prof. Paul Smoke and Aniruddha Das Gupta for conceiving of this project. I am also grateful to Toru Hashimoto at World Bank office in Manila for overseeing the work in the Philippines. I would also like to thank Paul Smoke, my thesis advisor, for his sturdy support, encouragement, very clear and patient feedback and assisting with the editing; Jennifer Davis, my reader for her comments and suggestions. I also owe a great deal of gratitude to Mayor Kate Gordon for her invitation to work with Olongapo City Government; Attorney Ferdinand Ariosteranos and Elizabeth Simpa- Zavalla for their insight and hospitality, Cecelia and Lynette for providing me with a wealth of information on Olongapo. I would also like to thank the City officials: Oscar Augustine, Anselmo Santos, Dennis Martinez, Dante Ramos and Attorney Bargado for devoting their time and making available the data and information for the study. I am grateful to a number of people in the City Council, the central agencies, and the CDS consultants
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