Facilitating Public Investment (FPI) Quarterly Report: April – June 2016

The project was implemented by DAI, with funding from the United States Agency for International Development (USAID). The project's primary objective was to increase revenues through improved tax policy and administration, and to enhance the efficiency and transparency of the government's tax and budget systems. During the reporting period, the project team engaged in multiple activities to achieve these objectives. In the area of tax effort, the project team worked with the Bureau of Internal Revenues (BIR) to expand its capacity to accommodate increased e-filing. This effort was successful, with a 2016 income tax filing season experiencing few technical difficulties despite a significant increase in utilization. The enhanced filing and payment opportunities provided to taxpayers are expected to lower their costs of compliance, increase the transparency of their interactions with the tax system, and provide the data needed to enable the BIR to develop and implement more effective tax administration practices. In addition to improving tax administration, the project team also worked to build a broad-based consensus for fiscal reforms. This effort involved supporting a group designed to promote fiscal reforms and creating a better "tax climate." The project team also worked to strengthen budget preparation and execution processes within the Department of Budget and Management (DBM), and to deepen and institutionalize the reforms implemented by the Aquino administration. The project team also initiated several activities to improve public expenditure management. These included supporting multiple Open Government Partnership (OGP) activities, completing formal Extractive Industries Transparency Initiative (EITI) grant-making activities, and initiating related implementation activities. Furthermore, the project team commenced the construction of a database to support the analysis of the effects of moving to a federal form of government, and began analyzing additional reforms to current processes to facilitate a planned major increase in infrastructure spending. The project's activities during the reporting period were designed to increase revenues through improved tax policy and administration, and to enhance the efficiency and transparency of the government's tax and budget systems. The project's efforts to strengthen tax effort and improve public expenditure management are expected to have a positive impact on the Philippine economy and contribute to the country's development goals.