Local resource management (LRM) project (RPTA component) project no. 492-0358 : project assistance completion report (PACR)

The report includes summaries of a 4/89 assessment and a 7/90 external impact evaluation. Although RPTA was authorized in 8/84, implementation did not begin until mid-1988 due to serious disagreements between USAID and the Philippine Department of Finance (DOF), and when it did, it concentrated solely on Region VI. By the time of the 4/89 assessment, the project covered 56 local government units (LGUs) in Region VI, and the assessment found sufficient reason to extend the PACD, as well as to expand implementation into Region V. At project end, the RPTA system for tax mapping, records conversion and management, and tax collection had been installed in all 130 LGUs in Region VI and 55 of 115 LGUs in Region V. For the most part, a decentralized management structure from the regions to the LGU level proved an effective implementation mechanism, as indicated by the fact that the various approaches taken by the provinces in the absence of detailed guidelines have produced equally successful results. Provincial and city officials now have an adequate capacity to support RPTA operations and are becoming increasingly qualified through experience and training. The benefits of RPTA have included: increased assessments, improved quality of records; trained staff; and increased awareness of RPTA processes. It is believed that installation of RPTA is cost-effective, and available data indicate that there have been increases in local revenue in every LGU in which RPTA has been implemented. At a post-project workshop, recommendations were made for replicating the RPTA nationwide. With the passage of the 1991 Local Government Code giving LGUs primary responsibility for RPTA, the DOF should play an active role in providing TA to the LGUs. Specifically, the DOF should encourage the LGU"s to give priority to: (1) continuous training in RPTA systems maintenance personnel, along with logistical and financial support for maintenance; (2) further simplification of RPTA procedures to increase cost-efficiency; (3) widespread installation of the computerized RPTA system tested under the project; and (4) continuing emphasis on tax collection.