THE government recently signed a development policy loan agreement with the World Bank amounting to $300 million to boost fiscal sustainability and governance transparency in the Philippines, the Department of Finance (DOF) said.
In a statement, the finance department said the loan program aims to spur sustained and inclusive growth and job creation by increasing physical and human capital investment and tackling regulatory barriers in land, labor, and capital markets.
Under the World Bank’s Third Development Policy Loan (DPL 3) which was signed on October 14, the Philippines will receive support in strengthening priority public investment implementation, reducing the cost of doing business for job creation and poverty reduction, developing the human capital of the poor, promoting fiscal transparency and good governance, as well as consolidating fiscal sustainability through revenue mobilization and risk management.
The activities in focus under DPL 3 include infrastructure development and the streamlining of business registration processes for micro, small and medium enterprises, the DOF said.
DPL 3 will also support the Philippines in policy and institutional development on developing human capital, transparency, enhancing the tax effort, and the advancement of an integrated fiscal risk management strategy, it added.
“DPL 3’s strong focus on fiscal sustainability, infrastructure, human capital, and good governance enables the Philippines to boost our inclusive growth agenda as we reach the tail-end of this administration. This is consistent with the Philippines’ partnership with The World Bank in ensuring our economic turnaround story translates into real and sustainable gains for the Filipino people,” Finance Secretary Cesar Purisima said.
While the Department of Finance serves as the main liaison with the World Bank on budget support operations, responsibilities for policy dialogue as well as monitoring and evaluation are shared with the departments of Budget and Management, Public Works and Highways, Tourism, Agriculture, Trade and Industry, Social Welfare and Development, Education, Health, and the Climate Change Commission.