Building on Reform : Public Finance for a Rising Philippines

Overview & Synopsis

This report examines how the Philippines can strengthen fiscal sustainability while promoting inclusive economic growth as it advances as an upper-middle-income economy. The review finds that the country’s key fiscal challenge is not only the level of revenue and spending, but the effectiveness and equity of its public finance system. It identifies structural gaps in tax collection, expenditure efficiency, public investment, procurement, health, education, and social protection, while highlighting opportunities to improve outcomes through stronger institutions and better resource allocation. The report proposes three reform packages focused on creating fiscal space, closing fiscal gaps, and targeting human capital investments. Together, these reforms aim to build a higher-quality fiscal system that delivers better services, enhances productivity, reduces poverty, and supports a more resilient and prosperous future for all Filipinos.