Final Thesis Manuscript

The Hustle Through a Hassle: A Case Study on the Best Fiscal Practices of
Iloilo City During the COVID-19 Pandemic
A Research Proposal
Presented to
Prof. Shim Lester de Pio
Instructor of Research in Political Science
West Visayas State University-La Paz
In Partial Fulfillment
of the requirements for the subject
Research in Political Science
By
Nicole P. Agnes
Vhiera Marie L. Lometillo
Ma. Christine Joy G. Quistadio
Jea June P. Sorolla
Bachelor of Arts in Political Science 4A

West Visayas State University
College of Arts & Sciences
SOCIAL SCIENCE DEPARTMENT
La Paz, Iloilo City
Acknowledgements
It is our great pleasure to express our gratitude to the following people who
helped make this study possible and who helped us in any way they can while we
completed this study:
To our Thesis Adviser, Dr. Mary Ann Dela Vega, thank you for the help and
expert guidance in the completion of this paper. We appreciate your generous time to
exhaustively review the paper all throughout the process.(;)
To our Professors who served as our panels and advisers: Dr. Shim Lester G. De
Pio, Dr. Lenlen Sacapaño, and Dr. Jonel Lañada, we extend our appreciation for giving
us your knowledgeable and kind comments and for your encouragement which led us
to the direction of this paper.
To our families, we thank them for their unwavering support and assistance
throughout our academic pursuits.
Lastly, to the participants, we appreciate your time, effort, and honest answers
during the conduct of this study. Your knowledge and expertise is a great contribution
to the success of this study.
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Table of Contents
Page
Acknowledgements i
Table of Contents
Abstract
Chapter one: Introduction
Background of the Study
Epistemological and Theoretical Perspective of the Study
Constructivism
Interpretivism
Micro Theory
The Principle of Accountability, Transparency, and Predictability
Paradigm of the Study
Statement of the Problem
Significance of the Study
Definition of Terms
Subjectivity Statement
Scope and Limitations
Chapter two: Review of Related Literature
Fiscal Management and Related Studies
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Mandanas-Garcia Ruling, Decentralization, and Devolution
COVID-19 vis-a-vis Fiscal Management
Recognized Best Fiscal Management Practices in LGUs
Synthesis
Chapter three: Research Design and Methodology
Research Design
Methodology
Participants
Settings of the Study
Data Collection
Data Instruments
Data Analysis
Validity and Reliability of the Study
Ethical Considerations
Chapter four: Results and Discussions
Participants’ Profile
Themes
1. Good Local Leadership
1.1. Unity of Departments, Constituents, and Community
Empowerment
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1.2. Private, Public, and Government Partnership
1.3. Fiscal Measures, Initiatives, and Practices Against COVID-19
2. COVID-19 Pandemic and its Effects
2.1. Shortage in Fiscal Resources
2.2. Workforce Limitations
3. Prioritization of Fiscal Resources into COVID-19 Responses
3.1. Tightening of the Belt: Adaptation of Austerity Measures
3.2 Prudence in Spending and in Actions
Integration of Theory in relation to the Themes
Principle of Transparency, Accountability, and Predictability
Summary
Chapter five: Summary, Conclusions, and Recommendations
Summary of the Study
Summary of Findings
Conclusions
Recommendations
1. Recommendations for Practice
2. Recommendations for Future Researches
References
Appendices
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Abstract
COVID-19 Pandemic greatly affected the world, including the Philippines, and the
government felt the weight of the responsibility to lead its sectors and protect the
constituents. The Iloilo City Government was recognized by Bureau of Local
Government Finance (BLGF) for Best Fiscal Management Practice in responding to the
pandemic. This study was conducted to determine and identify the best fiscal practices
of Iloilo City amidst the COVID-19 pandemic by looking into ways on how the Iloilo City
Government respond to the global health crisis in terms of fiscal management, the
issues and challenges faced by the LGU in the fiscal management division, and
identifying the best practices that emerged therein. The study employed a qualitative
case study research design. The study used a purposive sampling procedure and
interviewed seven (7) key informants in the offices of Iloilo City government - City
Treasurer’s Office, City Budget Office, Administrator’s Office, City Health Office, City
Planning and Development Office, Office of the City Accountant, and Mayor’s Office.
The gathered narratives were then coded using open coding and generated themes
based on the patterns that emerged. The results from the data generated three (3)
main themes with corresponding sub-themes - Good Local Leadership, COVID-19
Pandemic and Its Effects, and Prioritization of Fiscal Resources into COVID-19
Responses.
Keywords: COVID-19 Pandemic, Best Fiscal Practices, Iloilo City Government
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Chapter 1
INTRODUCTION TO THE STUDY
This chapter introduces the research study which contains: (1) Background of the
Study; (2) Epistemological and Theoretical Perspective of the Study; (3);Paradigm of
the Study; (4) Statement of the Problem; (5) Significance of the Study; (6) Definition of
Terms; (7) Subjectivity Statement; and (8) Scope and Limitations.
Background of the Study
“Public spending is a story of some people spending other people’s money.”
These are the words of Anwar Shah (2005) in his book Fiscal Management. He further
stated that in modern democracies, voters elect individuals who specialize in policy-
making. The Philippines, as a modern democratic country, enjoys this right to elect
politicians to decide for its fiscal management through making policies. Fiscal
management, which is interchangeably referred to as financial management, is the
process which allows any organization to efficiently run within its allotted budget. Its
general purpose is to improve the way the department operates by planning, recording,
and performing procedures related to budget (Bliss, 2022). Fiscal and budgetary
changes are necessary because the country's macroeconomic stability and level of
governance are significantly influenced by the effectiveness of public financial
management. There is little doubt about this, especially in light of the fact that
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government program delivery quality is now seen as one of the determinants of growth
(Diokno, 1999).
The development and application of fiscal policies as well as the promotion of
social goals were then made possible with the help of financial management. Updates
to financial management systems have been attempted numerous times. These reforms
were not consistently implemented across countries and public institutions, nor did they
always reflect a consistent strategy when they were made. Instead, adjustments were
made gradually in response to shifting needs. In some instances, the catalyst was due
to the significant accumulation of issues and potential threats for the adoption of
sensible fiscal policy. The unprecedented SARS-CoV-2 or Severe Acute Respiratory
Syndrome Coronavirus 2 outbreak commonly known as COVID-19 pandemic is by far
the most challenging public health crisis the world has faced in a century which
overwhelmed global and national health service and disaster management
infrastructure, bringing economies to a standstill, resulting in a huge change especially
in local government units (Domingo, et al., 2020). The grassroots of the government –
Local Government Units (LGUs), became the forefront in implementing COVID-19
responses. The pandemic becomes a much larger social support or social protection
issue with direct implications on the LGUs’ capacity to finance, administer, and design
effective strategies. The LGUs adopted a lot of measures depending on the extent of
the pandemic in their locality. The purpose is to keep the number of infections and
mortality at bay while minimizing the economic impact of the pandemic and mitigating a
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change in financial priorities and opportunities.
The fiscal management changes do not only affect the National Government but
also the Local Government Units. Devolution paved the way for the transfer of political
power from the central government to the local government units. This transfer of
power and functions was accompanied by the provision of higher Internal Revenue
Allotment (IRA), broader tax base and a just share in the national wealth to finance
devolved responsibilities and provision of various goods and services to field offices at
the regional, provincial, and municipal/city level (PhD Essay, 2021). Iloilo City has
enjoyed the allocation of budget from the National Government because it can realize
development and poverty reduction in the city. Moreover, the budget of the city is used
to combat unprecedented problems and issues such as the COVID-19 pandemic.
In 2020, while the number of COVID-19 cases is increasing, the Iloilo City was
dubbed as “The Wakanda of the Philippines,” this is because the City is considered as a
safe haven far from the outbreak, a situation closely similar to the utopian country
‘Wakanda’ in the Black Panther movie. According to Rappler, this label given to the City
is due to the fact that as of July 29, 2020, with a population of almost 500,000, Iloilo
has only 8 active COVID-19 cases, which is undoubtedly a low number and desirable for
other cities in the country. In the continuing surge of the COVID-19 pandemic, there
are various implementations that contribute to the success of Iloilo City in battling this
unseen, deadly enemy. Aside from the government and the Ilonggos working hand-in-
hand, there is also the efficient use of funds and resources amidst Covid-19 pandemic.
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Last October 2021, Iloilo City was awarded by the Bureau of Local Government Finance
(BLGF) for the Best Fiscal Management Practice during the COVID-19 pandemic, in the
area of Efficient Allocation of Funds and Resources (BGLF, 2021).
This study aims to determine and identify the best fiscal management practices
of Iloilo City amidst the COVID-19 pandemic. In particular, it looks deeper into the
pages of books, articles, and other secondary data and into the employees of Iloilo City
Hall to further identify the strategies of those who first-handedly propose and
implement fiscal management plans and practices of the City in accordance with the
needs of the first-class Highly Urbanized City of Love and the plight of its constituents
that even though there is a current threat to life and economy, Iloilo City still emerged
steadfast and even recognized as having the best fiscal practices.
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Epistemological and Theoretical Perspective of the Study
Constructivism
John W. Creswell (2009) in his journal entitled “Research Design”, shared that
Constructivism holds assumptions that individuals seek understanding of the world in
which they live and work. Individuals develop subjective meanings of their experiences-
meanings directed toward certain objects or things. These meanings are varied and
multiple, leading the researcher to look for the complexity of views rather than
narrowing meanings into a few categories or ideas. The goal of the research is to rely
as much as possible on the participants' views of the situation being studied.
The questions become broad and general so that the participants can construct
the meaning of a situation, typically forged in discussions or interactions with other
persons. The more open-ended the questioning the better, as the researcher listens
carefully to what people say or do in their life settings. Often these subjective meanings
are negotiated socially and historically. They are not simply imprinted on individuals but
are formed through interaction with others (hence social constructivism) and through
historical and cultural norms that operate in individuals' lives. In addition,
Constructivism “emphasizes the hold our culture has on us: it shapes the way in which
we see things….and gives us a quite different view of the world”. From an
epistemological perspective constructivism is focused on ‘how we know’ and in essence
by inference ‘what meaning we place on this knowledge (Crotty, 1998). Furthermore, it
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is the view that all knowledge, and therefore all meaningful reality as such, is
contingent upon human practices, being constructed in and out of interaction between
human beings and their world, and developed and transmitted within an essentially
social context (Crotty, 1998).
Thus, constructivist researchers often address the processes of interaction
among individuals. They also focus on the specific contexts in which people live and
work, in order to understand the historical and cultural settings of the participants.
Researchers recognize that their own backgrounds shape their interpretation, and they
position themselves in the research to acknowledge how their interpretation flows from
their personal, cultural, and historical experiences. The researcher's intent is to make
sense of (or interpret) the meanings others have about the world. Rather than starting
with a theory (as in postpositivism), inquirers generate or inductively develop a theory
or pattern of meaning.
In the research study, constructivism was used by participants to construct
meanings according to his or her experiences. These experiences shaped their
understanding of the situation and status where they live and how they live. Meanings
are constructed by human beings as they engage with the world they are interpreting.
Qualitative researchers tend to use open-ended questions so that the participants can
share their views. He added that humans engage with their world and make sense of it
based on their historical and social perspectives-we are all born into a world of meaning
bestowed upon us by our culture.
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Thus, qualitative researchers seek to understand the context or setting of the
participants through visiting this context and gathering information personally. They
also interpret what they find, an interpretation shaped by the researcher's own
experiences and background. The basic generation of meaning is always social, arising
in and out of interaction with a human community. The process of qualitative research
is largely inductive, with the inquirer generating meaning from the data collected in the
field.
Interpretivism
Interpretivism relates to subjectivist views, meanings and interpretation.
Interpretivism supported scholars in terms of exploring their world by interpreting the
understanding of individuals (Thanh & Thanh, 2015). Interpretivism assumes that
reality is socially constructed through interaction of individuals (Walsham, 1995).
Interpretivism involves researchers to interpret elements of the study, thus
interpretivism integrates human interest into a study. Accordingly, “interpretive
researchers assume that access to reality (given or socially constructed) is only through
social constructions such as language, consciousness, shared meanings, and
instruments”. Development of interpretivist philosophy is based on the critique of
positivism in social sciences. Accordingly, this philosophy emphasizes qualitative
analysis over quantitative analysis.
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Interpretivism is also “associated with the philosophical position of idealism, and
is used to group together diverse approaches, including social constructivism,
phenomenology and hermeneutics; approaches that reject the objectivist view that
meaning resides within the world independently of consciousness”. According to the
interpretivist approach, it is important for the researcher as a social actor to appreciate
differences between people. Moreover, interpretivism studies usually focus on meaning
and may employ multiple methods in order to reflect different aspects of the issue.
It is originally rooted in the fact that methods used to understand knowledge
related to human and social sciences cannot be the same as its usage in physical
sciences because humans interpret their world and then act based on such
interpretation while the world does not (Hammersley, 2013, p. 26).
Virtually, with interpretivism perspective, researchers tend to gain a deeper
understanding of the phenomenon and its complexity in its unique context instead of
trying to generalize the base of understanding for the whole population (Creswell,
2007). In the same way, Hammersley (2013) emphasizes that since multiple
interpretation is developed among humans’ relationship, interpretivist researchers
should try to understand “the diverse ways of seeing and experiencing the world
through different contexts and cultures” and try to avoid the bias in studying the events
and people with their own interpretations.
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The central endeavor of the Interpretivist paradigm is to understand the
subjective world of human experience (Guba & Lincoln, 1989). This approach makes an
effort to ‘get into the head of the subjects being studied’ so to speak, and to
understand and interpret what the subject is thinking or the meaning s/he is making of
the context. Every effort is made to try to understand the viewpoint of the subject
being observed, rather than the viewpoint of the observer. Emphasis is placed on
understanding the individual and their interpretation of the world around them. Hence,
the key tenet of the Interpretivist paradigm is that reality is socially constructed
(Bogdan & Biklen, 1998).
In theory, Intepretivist research methods derive from ‘social action theory‘.
Intereptivists actually criticize ‘scientific sociology’ (Positivism) because many of the
statistics it relies on are themselves socially constructed. They argue that in order to
understand human action we need to achieve ‘Verstehen‘, or empathetic understanding
– we need to see the world through the eyes of the actors doing the acting.
Interpretivism was used in the study by the researchers to explain, criticize and
interpret the deeper understanding and meaning of the topic and the questions asked.
Micro Theory
The Principle of Transparency, Accountability, and Predictability
Local Government Units are expected to promote good governance to achieve
sustainable development and promote effective policy considerations. Aside from
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decentralization which is an effective mechanism underpinning good governance,
according to Al-Hemiary (2010) the principle of accountability, predictability, and
transparency may also be the key.
According to the ISSA Guidelines: Good Governance, there are three most
important aspects to promote governance: transparency, accountability and
predictability. First, accountability is the ability to hold legally responsible officials who
are in charge of the institution. It requires establishing norms and standards to evaluate
the achievement of the institution’s mission, and a well-functioning system of redress
that protects the interests of stakeholders and deters mismanagement and deviations
from the institution’s mandate. ADB (1999) also added that accountability is imperative
to make public officials answerable for government behavior and responsive to the
entity from which they derive their authority. This may be achieved differently in
different countries or political structures, depending on the history, cultural milieu, and
value systems involved.
Second, transparency is the availability and accessibility of accurate, essential
and timely information to ensure that stakeholders are well informed of the true state
of a local government. Transparency in the decision-making process promotes honesty,
integrity and competence, and discourages wrongdoing. Transparency refers to the
availability of information to the general public and clarity about government rules,
regulations, and decisions. Thus, it both complements and reinforces predictability. The
difficulty with ensuring transparency is that only the generator of information may know
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about it, and may limit access to it. Transparency in government decision making and
public policy implementation reduces uncertainty and can help inhibit corruption among
public officials. To this end, rules and procedures that are simple, straightforward, and
easy to apply are preferable to those that provide discretionary powers to government
officials or that are susceptible to different interpretations (ADB, 1999).
And lastly, predictability refers to the consistent application of the law and its
supporting policies, rules and regulations. Predictability refers to (i) the existence of
laws, regulations, and policies to regulate society; and (ii) their fair and consistent
application. The importance of predictability cannot be overstated since, without it, the
orderly existence of citizens and institutions would be impossible. The rule of law
encompasses both well-defined rights and duties, as well as mechanisms for enforcing
them, and settling disputes in an impartial manner. It requires the state and its
subsidiary agencies to be as much bound by, and answerable to, the legal system as
are private individuals and enterprises (ADB, 1999).
Another initiative in line with the principle is the Philippine Public Financial
Management (PFM) Reform Program which aims to improve efficiency, accountability
and transparency in public fund use in order to ensure the direct, immediate,
substantial and economical delivery of public services especially to the poor. The said
program implements the key strategies of the Philippine PFM Reform Roadmap:
Towards Improved Accountability and Transparency (2011-2016 ), a comprehensive
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reform agenda that seeks to clarify, simplify, improve and harmonize the government’s
financial management processes and information systems.
In essence, it is a set of principles and criteria for social management to
maximize public benefits, to promote and ensure harmonious and sustainable country
development (Giao, 2021). In other words, it is both the ideal state and the goal that
many countries’ government reform efforts have been aiming towards, as well as the
guiding principles for the state and government, or the entire system’s designs and
operations, especially in the LGUs.
In addition, Kenneth Bush (2004) in his work “Building Capacity for Peace and
Unity: The Role of local Government in Peacebuilding”, opening up local government to
popular participation and improving partnerships with civil society and the private sector
fosters greater transparency and accountability in local government priority setting,
budgeting and service delivery. This may be achieved, for example, through the
preparation of participatory local development strategies and action plans.
In this study, these principles will be considered as the basis of good governance
and effective management to the LGUs during the pandemic. These factors might affect
the delivery of services in the LGUs during the pandemic and the fiscal plans for the
city.
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Illustration 1: Paradigm of the Study
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Statement of the Problem
This study aims to determine and identify the best fiscal management practices
of Iloilo City amidst the COVID-19 pandemic.
Specifically, it focuses to answer the following questions:
1. How did the LGU of Iloilo City respond to the COVID-19 pandemic in terms of
fiscal management?
2. What are the issues and challenges faced by the LGU in the fiscal management
division of Iloilo City during the COVID-19 pandemic?
3. What are the best fiscal management practices of Iloilo City during COVID-19?
Significance of the Study
The COVID-19 pandemic is still lurking in the country. Variants have been
detected and cases are still active. The LGUs’ role to combat the pandemic is highly
necessary for its mitigation and soon, its end. This study can be significant to the
following:
To the DILG, this study may either answer a gap to the existing policies of the
DILG or provide them with an idea or basis on which policy to formulate to better
address the impacts of the COVID-19 pandemic in the LGUs based on the factors that
contributes to the best practices in the fiscal management plans of Iloilo City.
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To the LGUs, this study hopes to impart to other LGUs the feasible and
appropriate measures to combat the COVID-19 pandemic through the determination
and explanation of the factors that contributes to the best practices in fiscal
management of Iloilo City in response to the COVID-19 pandemic This would help
improve the plans and developments to control the pandemic.
To Iloilo City and its constituents, this study might provide
recommendations to further improve and strengthen the current measures and best
practices of the City with regards to its fiscal management plans against the COVID-19
pandemic. It might be an eye-opener to the role of both the local government and its
people in their fight against the unseen foe.
To the researchers, this paper would allow them to determine and identify the
factors that contribute to the best practices of Iloilo City during the Covid-19 Pandemic.
This study will help improve knowledge in the course, Political Science. As a subject,
this study will also be an instrument of knowledge and subject justification and
understanding as this will serve as the final output for the semester.
To the students, this study aims to provide another literature for future
studies. Students may use and acknowledge this study in connection with their studies.
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Definition of Terms
Best Practices
Gavin Wright (2022) defined best practices as a standard or set of guidelines
that is known to produce good outcomes if followed.
In this study, best practices are performances, activities, policies, and measures
implemented by an LGU in one of the three thematic areas set by the Bureau of Local
Government Finance (BGLF). These three thematic areas include: (i) digitization of
treasury and assessment operations; (ii) efficient allocation of funds and resources to
aid affected households and marginalized sectors, protect the health of our health care
workers and the public, and to support the education sector; and (iii) recovery
initiatives to help rebuild the local economy ( BGLF, 2021).
Best practices, in this study, focuses only on the second thematic area on
efficient allocation of funds and resources to aid affected households and marginalized
sectors, protect the health of our health care workers and the public, and to support
the education sector during the COVID-19 pandemic.
Case Study
Case study is defined as a comprehensive examination of one individual, event,
or event (Cherry, 2022).
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In this study, case study is the research approach that this study uses. It is an
in-depth study of the case of Iloilo City’s best practices on fiscal management and its
factors during the COVID-19 pandemic.
COVID-19
Coronavirus disease (COVID-19) is an infectious disease caused by the
SARSCoV-2 virus. Most people infected with the virus will experience mild to moderate
respiratory illness and recover without requiring special treatment. However, some will
become seriously ill and require medical attention. Older people and those with
underlying medical conditions like cardiovascular disease, diabetes, chronic respiratory
disease, or cancer are more likely to develop serious illness. Anyone can get sick with
COVID-19 and become seriously ill or die at any age (WHO, 2019).
In this study, Coronavirus Disease (COVID-19) is defined as a health issue
caused by Coronavirus which started its spread in the country in March 2020. COVID-
19, in this study, is also a factor which affected the fiscal management plan of the
LGUs, specifically of Iloilo City.
Fiscal Management
Fiscal management is the process of keeping an organization running efficiently
within its allotted budget. Though the word "fiscal" can be used interchangeably with
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the word financial, in most cases, fiscal management refers to money management
within a government entity (Bliss, 2021). This is to plan the work-unit’s budget and
manage income and expenditure, through responsible implementation of policies,
practices and decisions in order to achieve unit objectives effectively and efficiently.
In this study, fiscal management is used to define the budget management of all
monetary resources, expenditure and taxation of the LGU which they are using to fund
their programs, projects, and activities.
Iloilo City
Iloilo City is a first class city and a highly urbanized city with a land area of
78.3400 square kilometers. It is located in the southern coastal part of Panay Island in
the Visayas. It comprises seven political districts with eighty (180) barangays. Due to
its strategic location, easy access, and developments in infrastructure, Iloilo City’s
economy is one of the most competitive in the country. Iloilo City stands as the center
of trade, commerce, finance, technology, medical tourism, hospitality, real estate,
tourism, education, and industry (Local Development Council of Iloilo City, City Planning
and Development Office, 2021).
In this study, Iloilo City, a first-class highly urbanized city, will be the subject of
this study wherein the researchers studies the factors that contribute to the best
practices of its fiscal management plans from the year 2020 to 2022 during the COVID-
19 pandemic.
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Subjectivity Statement
As our proposed research involves determining and identifying the factors
influencing the best fiscal management practices of Iloilo City amidst the COVID-19
pandemic, it is important we address our own subjectivity within this study. As Political
Science students who study behaviors and events regarding governments, we believe
that it is necessary to use the opportunity of being able to conduct a research study to
at least highlight some of the issues which affect our community and our government.
We believe it is an obligation and a privilege to help empower people, and contribute to
the development of the society, to the best of our ability. The best we can do involves
apprehending our own evaluation as humans and researchers, knowing what
limitations we inherently face and believing in our ability and credibility to address such
complex social issues.
This study aims to determine and identify the factors influencing the best fiscal
management practices of Iloilo City amidst the COVID-19 pandemic. As researchers,
this would help others know and identify the measures and plans that the City
implemented which produced the best practices in its fiscal management during the
COVID-19 pandemic, their plans and the ongoing process. This study will further
explain the above topic. Thus, the researchers’ goal does not only include compliance,
but cooperate and contribute to society.
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Scope and Limitations
This qualitative study is conducted to determine and identify the best fiscal
management practices of Iloilo City amidst the COVID-19 pandemic. The researchers
will conduct a one-on-one interview with the nine key informants from the different
departments or offices of Iloilo City Hall who first-handedly proposed and implemented
measures. The researchers will also gather and analyze secondary data with regards to
the resulting factors that contribute to the best practices in fiscal management plans of
the City. This study will focus only on the Fiscal Year 2020, 2021 and 2022.
It aims only to focus on the best practices in fiscal management of the City
based on the answers of the key informants during the conduct of the interview and
the secondary data that the researchers would exhaustively read and analyze. It does
not include other Highly Urbanized Cities from around the country. The results and
changes may vary and cannot be applied to some.
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Chapter 2
REVIEW OF RELATED LITERATURE
This chapter deals with the collection of literature and related studies which
relates to the problem being studied. Included herein are compiled literatures and
studies about (1) Fiscal Management and related studies; (2) Mandanas-Garcia Ruling,
Decentralization, and Devolution; (3)COVID-19 vis-a-vis Fiscal Management (4)
Recognized Best Fiscal Management Practices in LGUs ; (5) Synthesis.
Fiscal Management and Related Studies
Fiscal management involves the planning, directing and controlling of financial
resources, whether for a private company or public agency. In particular, public
administrators working for government agencies benefit tremendously when they apply
modern management principles and techniques to make the government operate more
smoothly and effectively (Norwich University, 2019).
In a public administration perspective, fiscal management plays the lead role in
setting a government agency’s fiscal policy. Under the Keynesian approach to fiscal
policy, any increase or decrease in revenue (in the form of taxes) and expenditures
(government spending) affects inflation, employment, and the supply of money in the
economy (Norwich University, 2019) and ensures that the organization or the
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government operates within a budget. In this study, fiscal management is composed of
financial planning and budget management.
Fiscal management has been one of the greatest contributors to the
development of the local governments. According to the Local Government Code, the
financial affairs, transactions, and operations of local government units shall be
governed by the same fundamental principles of the national government budgeting,
accounting and auditing rules and regulations. The local budget is approved through a
local ordinance and provincial governments submit their budget to the national
Department of Budget and Management for approval.
In the mid 2000s, under the umbrella of the Medium-Term Philippine
Development Plan (MTPDP) 2004–2010, the Government of the Philippines initiated a
wide ranging and comprehensive program of reforms to address the long-standing
problems of poverty and unemployment, and achieve the Millennium Development
Goals (MDGs). The Philippines Development Forum (PDF) in 2007 reiterated the
government‟s commitment to poverty reduction, through nurturing local growth,
fostering local economic development, and promoting better service delivery by local
governments. More specifically, the government sought to strengthen poverty reduction
efforts by continuing with its reforms in fiscal management and service delivery by local
government units (ADB, 2013).
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Local government reform in the Philippines had started a decade and a half
earlier with the enactment of the Local Government Code (LGC) in 1991. The LGC
provided a comprehensive framework for local autonomy and decentralization. Under
this is the Local Government Financing and Budget Reform (LGFBR) program cluster
has been an integral part of local government reforms. Areas that were perceived as
reform priorities included (i) clearer and more streamlined expenditure assignments
between national government agencies (NGAs) and LGUs, (ii) wider alternatives for
LGUs‟ resource mobilization, (iii) increased capacity of LGUs in tax administration,
budgeting, and financial management, (iv) better structures, procedures, and
information systems for NGAs to exercise their oversight roles in LGUs‟ activities, and
(v) a stronger legal and institutional framework for decentralization (ADB, 2013).
Local Government Financing and Budget Reform program included reforms to (i)
improve the release of LGU shares in national government revenues; (ii) implement a
financial reporting system; (iii) improve the local government performance
measurement system; (iv) facilitate access of LGUs to development credit financing;
and (v) improve the collection of local business and real property taxes.
Mandanas-Garcia Ruling, Decentralization, and Devolution
The Mandanas-Garcia Supreme Court (SC) ruling refers to the SC’s final decision
on the two (2) separate (consolidated on October 22, 2013) petitions filed before the
SC: (1) the petition filed by Congressman Hermilando I. Mandanas and other local
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officials vs. Executive Secretary Paquito N. Ochoa, Jr., et al. (G.R. No. 199802); and (2)
Congressman Enrique T. Garcia, Jr. vs. Executive Secretary Paquito N. Ochoa, Jr., et al.
(G.R. No. 208488).
Both petitions challenged the manner in which the National Government (NG)
computed the Internal Revenue Allotment (IRA) shares of local government units
(LGUs). In particular, the petitioners pleaded with the SC to mandate the NG to
compute the IRA based on the “just shares” of the LGUs. In its July 3, 2018 Decision,
the SC granted the Mandanas-Garcia petition, declaring as unconstitutional the phrase
“internal revenue” appearing in Section 284 of the Local Government Code (LGC) of
1991. As such, the SC ordered the deletion of the said phrase.
The SC ruled that the determination of the just share of the LGUs should not be
based solely on national internal revenue taxes but on all national taxes.The SC also
ruled that any mention of “internal revenue allotment” in the LGC of 1991 shall be
understood as pertaining to the allotment of the LGUs derived from the national taxes.
It further ordered the Secretaries of Finance and Budget and Management,
Commissioners of Internal Revenue and Customs, as well as the National Treasurer to
include all collections of national taxes in the computation of the base of the just share
of the LGUs, based on the ratio provided in the now-modified Section 284 of the LGC.
The SC Ruling became final and executory on April 10, 2019, affirming its earlier
decision promulgated in July 3, 2018.
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The impact of the SC decision significantly increased the tax base on which the
share of the LGUs is computed from, and thus, strengthened fiscal decentralization. It
clarifies the distinction between “national internal revenue taxes” and “national taxes”
as base in the computation of the IRA of LGUs. National internal revenue taxes include
only taxes collected by the Bureau of Internal Revenue (BIR) while “National taxes,”
consists of all taxes and duties collected by the NG through the BIR, the Bureau of
Customs (BOC), and other collecting agencies.
Based on the certifications issued by the BIR, BOC, and Bureau of the Treasury (BTr),
the fiscal implication of the SC ruling implementation is about PhP959.04 Billion,1 which
is equivalent to a 37.89 percent increase or around PhP263 billion from the FY 2021 IRA
shares of LGUs. The implications of this bigger allocation for LGUs are as follows:
● This presents a unique opportunity for the LGUs to assume the functions that
have been devolved to them under the 1991 LGC and other subsequent and
pertinent laws.
● On the other hand, this will significantly diminish the fiscal resources available to
the NG for its key priorities and commitments in reducing poverty, promoting
infrastructure and human capital development, and pursuing peace and order in
the country, starting 2022.
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For fiscal sustainability, however, the devolved functions under the LGC should
be fully and permanently, albeit gradually, be turned over by the NGAs to the LGUs.
The NGAs should then pursue a long-term institutional development program for the
LGUs to strengthen their capacities and capabilities to assume the devolved functions.
During the budget preparation phase, the BIR, BOC, and the BTr submit to the
DBM a certification showing the corresponding 40 percent shares of LGUs in the
collection of national taxes made in the third fiscal year preceding the budget year.
Afterwards, the DBM computes and allocates the individual share of LGUs based on the
formula provided under Section 285 of RA No. 7160 (kindly refer to Question No. 7),
using as bases pertinent supporting documents/data including the approved Census of
Population and approved Master List of Land Area.
The 40 percent share is determined per Section 284 (Allotment of Taxes) of the
LGC: Local government units shall have a share in the national taxes based on the
collection of the third fiscal year preceding the current fiscal year as follows:
(a) On the first year of the effectivity of this Code, thirty percent (30%)
(b) On the second year, thirty-five percent (35%); and
(c) On the third year and thereafter, forty percent (40%)
Furthermore, the Mandanas-Garcia SC Ruling will affect the economic
development of LGUs in a more positive note. The increase in the NTA shares of the
LGUs puts them in a better position to directly implement programs, projects, and
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interventions that are tailor-fit to the priorities and needs of their respective localities
and constituents, thereby supporting the LGUs’ economic development and growth.
One of the focal points of the 1987 Constitution is its pursuance towards
decentralization of government and local autonomy. Local autonomy has two facets:
the administrative and the fiscal. Fiscal autonomy means that local governments have
the power to create their own sources of revenue in addition to their equitable share in
the national taxes released by the National Government, as well as the power to
allocate their resources in accordance with their own priorities.
Last 2018, the Philippine government initiated the implementation of the Mandanas-
Garcia Ruling of the Supreme Court with the Department of Budget and Management
(DBM) as the head of the Committee on Devolution (ComDev). It is a result of two
separate petitions filed by Batangas Governor Hermilando Mandanas and former
Bataan Governor Enrique Garcia Jr. before the Supreme Court requesting the basis of
computation of the Internal Revenue Allotment (IRA) of LGUs be adjusted to include
national taxes. Under section 284 of the Local Government Code of 1991, it is stated
that LGUs shall have 40% share from the IRA. However, both the governors appealed
that the Section 6 of the Article 10 of the 1987 Philippine Constitution states otherwise
that “LGUs shall have a just share, as determined by law, in the national taxes which
shall be automatically released to them.”
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The committee monitors the full devolution or decentralization of certain functions
of the national government to the local government units (LGUs). Under the Mandanas
Ruling, the LGUs are given higher shares on the collections of the country but that was
deducted from the available fund of the NGAs. Regional Director Ria Bansigan said that
from 2021 to 2022, the budget increased to 37.89 percent. Moreover, LGUs have
administrative autonomy to identify the priority programs – they are empowered to
determine their own economic development.
The IRA previously included the collection of the Bureau of Internal Revenue within
the country, however with the inclusion of the national taxes which includes the
collections of the Bureau of Customs (i.e. custom duties) the funds of the LGUs
drastically increased. The full devolution does not mean that all programs of the NGAs
will be transferred to the LGUs, the mandate of the agencies remain, and they will
assume the steering function or assist and provide technical assistance to the LGUs.
In addition, devolution is based on the subsidiarity principle and on the view that
it results in improved efficiency in the delivery of public services, and hence a more
efficient allocation of resources in the economy (Dabla‐Norris 2006). This perspective
draws from the classic distinction given by Musgrave about the different tasks of
government in an economy: allocation (which is better done by local governments),
stabilization and redistribution (which are better done by central government).
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Furthermore, Executive Order 138, series of 2021, or the “Full Devolution of Certain
Functions of the Executive Branch to Local Government Units, Creation of Committee
on Devolution, and for other Purposes” provides for the full devolution of certain
functions of the Executive Branch to the Local Governments Units (LGUs), as well as
the creation of a Committee on Devolution. This was issued by President Rodrigo Roa
Duterte on 1 June 2021 in consonance with the Supreme Court ruling in Mandanas, et
al. vs. Executive Secretary, also known as the Mandanas ruling.
EO no. 138 aims to: (a) develop capabilities of local governments to deliver basic
social services and critical facilities to their constituents, increase productivity and
employment, and promote local economic growth; (b) ensure accountability,
competence, professionalism, and transparency of local leaders; and (c) strengthen
capacities for managing public resources. DILG Secretary Eduardo M. Año said that the
EO will ensure that the policy of decentralization as enshrined in the Constitution and
the Local Government Code of 1991, as well as the increase in just share in national
taxes for LGUs as provided for in the Mandanas-Garcia ruling of the Supreme Court
(SC), will be carried out systematically and smoothly. Furthermore, DILG Chief said that
EO 138 is a leap towards the provision of a more responsive and accountable local
government structure instituted through a system of decentralization whereby local
government units shall be given more powers, authority, responsibilities, and the
corresponding financial resources.
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According to Año, a Committee on Devolution (ComDev) will also be created to
oversee and monitor the implementation of administrative and fiscal decentralization
goals of the EO; resolve issues and concerns that may arise in the implementation of
the EO; ensure the elimination of any regulatory or fiscal controls on the automatic
release of LGU shares; and adopt mechanisms to ensure the continuous delivery of
public services by the national government agencies and LGUs, among others.
Under the EO, a Growth Equity Fund (GEF) shall also be proposed to Congress
which will cover the funding requirements of the projects of poor, disadvantaged, and
lagging LGUs to enable them to implement the functions and services devoted to them.
The Department’s Local Government Academy (LGA) shall oversee the provision of
capacity development interventions for local governments, and shall develop the
appropriate mechanisms to ensure efficient utilization of government resources on this
effort. LGA will harmonize all capacity development interventions by the DBM, the
National Economic and Development Authority (NEDA), the Department of Finance
(DOF), other agencies, the Development Academy of the Philippines (DAP), and third-
party service providers for the LGUs. The LGA shall optimize the potential of the Local
Governance National and Regional Resource Centers as the convergence platform for
capacity development.
The DILG, DBM, and Bureau of Local Government Finance of the DOF, on the other
hand, shall include public financial management processes, such as local planning,
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investment programming, resource mobilization, and budgeting, in the capacity
development of the LGUs to ensure that the allocation of the revenue allotment for
basic services and facilities is in accordance with the Local Government Code or
Republic Act No. 7160 and other relevant laws.
The legal bases of the share of LGUs in the national taxes are:
Section 6, Article X, General Provisions of the 1987 Philippine Constitution,
provides that the LGUs shall have a just share, as determined by law, in
the national taxes which shall be automatically released.
Section 284 of RA No. 7160 provides that the LGUs shall have a 40
percent share in the national taxes based on the collections during the
third fiscal year preceding the current fiscal year.
Sections 18 and 286 of RA No. 7160 and Articles 383 and 390 of its
Implementing Rules and Regulations (IRR) provide that the share of LGUs
shall be automatically and directly released to the provincial, city,
municipal, or barangay treasurer without the need for any further action,
and shall not be subject to any lien or holdback that may be imposed by
the NG.
Section 4 of RA No. 9358,2 appropriating a supplemental budget for FY
2006, provides, among others, that the IRA is considered automatically
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appropriated and that future local government share in the national taxes
or IRA shall be likewise automatically appropriated.
COVID-19 vis-a-vis Fiscal Management
Coronavirus disease (COVID-19) is an infectious disease caused by the SARS-
CoV-2 virus. Most people infected with the virus will experience mild to moderate
respiratory illness and recover without requiring special treatment. However, some will
become seriously ill and require medical attention. Older people and those with
underlying medical conditions like cardiovascular disease, diabetes, chronic respiratory
disease, or cancer are more likely to develop serious illness. Anyone can get sick with
COVID-19 and become seriously ill or die at any age (WHO, 2020).
The outbreak of the Corona virus disease 2019 (COVID-19) has created a global
health crisis that had a deep impact on the way we perceive our world and our
everyday lives. Not only has the rate of contagion and patterns of transmission
threatened our sense of agency, but the safety measures to contain the spread of the
virus also required social and physical distancing, preventing us from finding solace in
the company of others and the burden it inflicted the country (Arriaga, et al., 2021).
The impact of the COVID-19 pandemic has been most acutely felt at the local
level. That is also where response and recovery efforts have been most critical. When a
disaster strikes, its impacts and effects are most acutely felt at the local level. COVID-
19 has been no exception as cities have been at the forefront of combating the
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pandemic’s spread and impact (United Nations Office for Disaster Risk Reduction,
2020).
These also brought financial dilemmas to some local governments that have
been rapidly affected by the pandemic. Since then, the fiscal management of local
governments has been one of the factors affecting the rise or fall of the virus.
The economic shock from the coronavirus pandemic has been sudden and
unprecedented. Within the span of just a couple weeks, many businesses and public
gathering spaces were shut down statewide, consumer spending on non-em ergency
items plummeted, and initial unemployment filings shattered old records (Municipal
Research and Services Center of Washington, 2020). Furthermore, Many local
governments have seen their tax revenues drop, although certain tax revenues have
actually increased in some cases due to the uneven nature of economic activity during
the pandemic, financial plans delayed and canceled, and at the same time, many local
governments have seen increased expenditures related to the pandemic.
Finance Secretary Carlos Dominguez III has underscored the vital role of local
government units (LGUs) in the difficult task of rebuilding the pandemic-battered
economy as he encouraged elective executives to make the best use of resources
readily available to them to bankroll their recovery programs and help revive
enterprises in their localities hardest hit by the global crisis. Republic Act (RA) No. 1494
or the Bayanihan To Recover As One Act (Bayanihan 2) as well as innovative solutions
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provided by Government Financial Institutions (GFIs) can help local economies recover
quickly from the COVID-19 crisis ( Dominguez, 2020).
Sourcing funds became more challenging to local officials that must address not
just COVID-19 realities but also other development concerns. While LGUs can tap
resources that are available from government lending institutions, only a small portion
are accessing these resources. To address this gap, Rare Philippines (2020) in
partnership with the Bureau of Local Government Finance (BLGF), an agency of the
Department of Finance, organized an initiative so that LGUs could learn more about
financing opportunities from government lending institutions. Therefore, this study aims
to examine the changes of local government units’ financial capabilities, methods and
budget management amidst the pandemic.
The Philippines is a low-middle-income country that has made significant
progress in its health financing indicators. Before the COVID-19 pandemic, the
country’s gross domestic product grew annually by 6.4% on average between 2010 and
2019. This trend shows that the Philippines was projected to transition to an upper-
middle-income country in the near term (World Bank n.d.). Current health expenditure
was PHP1 792.6 billion in 2019, growing by 10.9% from the previous year. Out-of-
pocket expenditure (OOP) as a share of current health expenditure decreased from
51.2% to 48.6% between 2015 and 2019, while the government’s share of health
spending increased from 39.1% to 40.8% (Philippine Statistical Authority [PSA] 2021).
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The threat posed by COVID-19 demanded the rapid scale-up of testing, isolation,
and inpatient services. In addition, increased inputs such as test kits, personal
protective equipment (PPE), new medicines, and vaccines were also needed. Public and
private providers were in desperate need of financial support to sustain facility
operations when the pandemic lockdowns decreased cash flow for public and private
providers. This decrease was due to a decline in non-COVID-19 cases, affecting sources
such as the Philippines Health Insurance Corporation (PhilHealth) reimbursements and
OOP expenditures. The COVID-19 response demanded adjustments in health financing
arrangements in the Philippines’ devolved and mixed health system, and many of these
adjustments were linked to the country’s system for public financial management
(PFM). The current budget development and negotiation process is a product of a
series of PFM reforms over the last decade. As background, the budget for the national
level—including health—is prepared and proposed by executive agencies and reviewed
by the Department of Budget and Management (DBM). This is then presented for
approval by Congress before final approval by the president. Similarly, on the local
level, budgets are prepared by departments, reviewed by the Local Budget Office,
undergo technical budget hearings led by the Local Finance Committee, and are
approved by the Local Chief Executive. Program budgeting, or the Performance
Informed Budgeting approach, was already adopted in the National Expenditure Plan
and General Appropriations Act of 2014, but it was not fully implemented until 2018 at
the national level (Lakin 2018). For health, there has been improved linkage between
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the National Objectives for Health by the DOH and the overall Philippine Development
Plan, which lay out the medium-term health goals and the country’s socioeconomic
agenda, respectively. At the local level, the Annual Investment Plan describes priority
programs, projects, and activities that should be funded in the annual budget, linked to
their medium-term (three years) Local Development Investment Program (Sicat et al.
2019).
The national government’s main mechanism to finance the COVID-19 health
response was through adjustments to the national budget. The DOH budget, which has
been steadily increasing over the years, accounted for PHP 176 billion, or 4.3%of the
PHP 4.1 trillion national budget in 2020, which was approved on January 6, 2020 (DBM
2020a). From this, PHP 71.4 billion was allocated to PhilHealth as a premium subsidy
for indirect contributors, or those who are unable to pay the premium. Following the
initial detection of COVID-19 in the country, the DOH requested a supplemental budget
of PHP 2 billion as early as February 2020, but Congress delayed granting this request
until local transmission was reported (Cepeda 2020). When community cases started to
increase, Congress held special sessions to ratify the Republic Act (RA) 11469, or the
Bayanihan2 to Heal as One Act (Bayanihan 1) (Congress of the Philippines 2020a). The
law granted the president the power to exercise temporary budget measures to quickly
mobilize and reallocate public funds from the 2020 General Appropriations Act (GAA)
and the continuing appropriations from the 2019 GAA in response to the pandemic
(Parrocha 2020). By September 2020, RA 11494, or the Bayanihan to Recover as One
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Act (Bayanihan 2), was legislated to augment COVID-19 response funds (Congress of
the Philippines 2020b). Due to unobligated funds, Bayanihan 1 was extended until the
end of 2020, while Bayanihan 2 was extended until June 30, 2021, as per RA 11519
(Congress of the Philippines 2020d) and RA 11520 (Congress of the Philippines 2020e;
DBM 2021a). The 2021 GAA (Congress of the Philippines 2020c) has already recognized
that recovery from COVID-19 is a priority of the government and has allocated monies
to address the continuing response, especially for the procurement of COVID-19
vaccines (DBM 2020b). These adjustments in the government budget have resulted in
shifts in health financing indicators.
Recognized Best Fiscal Management Practices in LGUs
The COVID-19 pandemic resulted in a global health crisis and precipitated a
sharp decline in economic activity that is without precedent in recent history. The crisis
has also caused a significant deterioration in public finances, which calls for a rethink of
tax and spending policies once the recovery is well underway. As the global economy
recovers, policymakers are turning their attention to the broader question of how to
manage their public finances through the recovery and beyond the health crisis. For the
recovery to be inclusive and sustainable, countries will need to consider the sectors and
demographics most affected by the crisis and develop tailored strategies that put these
groups at the center of the recovery effort (OECD, 2021).
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Local Governments together with the financial departments have been in the
forefront of the response to the COVID-19 crisis, alongside other actors such as health
organizations. They delivered substantial successive fiscal packages under considerable
time and operational pressure, as speed was key to the success and effectiveness of
government action on the economic, social and sanitary fronts (OECD, 2021). One of
the many factors that help mitigate the effects of the pandemic is the proper and
effective allocation of budget by the finance divisions to help decrease and limit the
spread and its effects.
In the Philippines, The Bureau of Local Government Finance (BLGF) as the
technical arm of the Department of Finance (DOF) led the launching of local
government units (LGUs) with the Best Local Fiscal Management Practices during the
COVID-19 pandemic last October 2021. The initiative was to recognize and award the
LGUs with the best fiscal management practices in their respective local treasury. The
assessment and qualifications for the award were divided into three thematic areas: (i)
digitization of treasury and assessment operations; (ii) efficient allocation of funds and
resources to aid affected households and marginalized sectors, protect the health of
our health care workers and the public, and to support the education sector; and (iii)
recovery initiatives to help rebuild the local economy.
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Three major cities were highlighted and awarded during this meeting: (1) In the
area of Digitization of Revenue and Assessment Operations, General Santos City Mayor
Ronnel Rivera spearheaded the presentation of its adoption of information technology
to digitize the LGU’s operations; (2) In the area of Efficient Allocation of Funds and
Resources, Mayor Jerry Treñas of Iloilo City, shared how the LGU has exhausted all
possible means to provide funds and manage their resources to ensure the welfare of
its citizens, including the indigents and marginalized sector, the elderly and healthcare
frontliners and; (3) in the area of Recovery Initiative to Help Rebuild the Economy,
Mayor Andrea Ynares of Antipolo City set a model for other LGUs in catalyzing projects
and programs to help spur the growth of their economy.
Another initiative by the LGUs to address the social and economic impact of the
pandemic, is to have extended deadlines for the payment of local taxes, fees, and
charges even before the enactment of Republic Act (RA) No. 11469 50 and RA 1149451
that mandated the moving of statutory deadlines for the payment of local taxes, fees,
and charges. In fact, some LGUs went beyond the extension of deadlines by granting
additional tax relief measures such as condonation or waiver of certain taxes due if only
to mitigate the impact of the pandemic to their property owners or due to economic
losses incurred by businesses. In addition, certain LGUs waived the interest, penalties,
and surcharges, incurred for non-payment of all local taxes, fees, charges, and fines
(NTRC, 2020).
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In addition to this, the Department of the Interior and Local Government (DILG)
will be awarding a total 350 local government units (LGUs) across the country for the
Seal of Good Local Governance (SGLG) award on December 2022 for their best
practices amid the coronavirus disease 2019 (COVID-19) pandemic. Interior Secretary
Benjamin “Benhur” Abalos Jr. said during an interview, “COVID-19 is a huge roadblock
in public service yet this year’s SGLG awardees persisted. I congratulate all 350 LGUs
for their exemplary performance in delivering quality public service to their localities and
for bagging the 2022 SGLG Award. I commend you for your commitment to raising local
governance standards despite the challenges brought by the pandemic and other
calamities we have faced in recent years.” Under the SGLG program, Abalos said LGUs
must pass the following governance areas: financial administration and sustainability;
disaster preparedness; social protection and sensitivity; health compliance and
responsiveness; sustainable education; business-friendliness and competitiveness;
safety, peace and order; environmental management; tourism, heritage development,
culture and arts; and youth development.
Further, he said out of 1,715 provinces, cities and municipalities nationwide, only
20.4 percent or 350 LGUs have received the SGLG this year. Among all the regions of
the country, Abalos said Region 3 (Central Luzon) garnered the highest number of
awardees with a total of 61 LGUs composed of 51 municipalities, six cities and two
provinces receiving the seal.
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This is followed by Region 1 (Ilocos Region) with 54 awardees comprising 48
municipalities, four cities and two provinces, and Region 2 (Cagayan Valley) with 35
awardees from 29 municipalities, four cities, and two provinces.
Other SGLG awardees for 2022 include five in the National Capital Region; 12 in
the Cordillera Administrative Region; 29 in Calabarzon; six in Mimaropa; nine in Region
5 (Bicol); 27 in Region 6 (Western Visayas); six in Region 7 (Central Visayas); 16 in
Region 8 (Eastern Visayas); six in Region 9 (Zamboanga Peninsula); 26 in Region 10
(Northern Mindanao); 15 in Region 11 (Davao Region); 13 in Region 12
(Soccsksargen); 17 in Region 13 (Caraga); and,14 in the Bangsamoro Autonomous
Region in Muslim Mindanao (BARMM). In addition to getting this year’s SGLG marker,
LGU awardees are also eligible for the SGLG incentive fund to finance their local
development initiatives in support of national goals and strategic thrusts.
Synthesis
The COVID-19 pandemic was indeed unpredictable and has brought numerous
challenges that tested the whole world in different aspects and industries. Despite the
global threat, Iloilo city transpired to be one of the Highly Urbanized Cities in the
Philippines that emerged victorious in its attempts to contain and control the deadly
virus. In Iloilo City, business operations stopped, and the economy was interrupted.
Yet, the Ilonggos have shown strength and resiliency leading it to be known as the
“Wakanda of the Philippines”, according to countless news articles and documentaries.
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In this study, the researchers highlighted Iloilo City’s best fiscal practices during the
global crisis.
The researchers conducted the research study, inspired by the current status and
experiences of Local Government Units in their struggles to lessen the casualties and
negative effects of the COVID-19 pandemic, secure adequate financing and effective
delivery of services despite the pandemic.
According to OECD(2020), Good budgetary governance – that is the institutions,
processes and structures for allocating resources to government policies, delivering
them and reporting on the financial outcomes – is critical at all times to support the
timely and efficient delivery of government policies, while at the same time ensuring
appropriate transparency and accountability of government action.
Thus, the purpose of this study is to underline the efforts of Iloilo city that
amidst the threat to life and economy brought about by the pandemic, Iloilo City still
emerged steadfast and even recognized as having the best fiscal practices.
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Chapter 3
RESEARCH DESIGN AND METHODOLOGY
This chapter discusses various relevant methodologies that the researchers used in data
gathering and analysis. This includes (1) Research Design; (2) Participants of the Study;
(3) Setting of the Study; (4) Data Collection Procedure; (5) Data Instruments; (6)
Validity of the Study; (7) Reliability of the Study; (8) Data Analysis of the Study; and
(9) Ethical Considerations.
Research Design
This study will apply qualitative methodologies. In qualitative research, data are
usually collected in the field where participants experience the issue or problem under
study. One of the major characteristics of qualitative research is gathering up-close
information by directly talking to people (Creswell, 2000). In this study, a case study
design will be utilized on the best fiscal management practices of Iloilo City during the
pandemic. The case study approach is specifically helpful to apply when there is a need
to acquire an in-depth appreciation of an issue, event or phenomenon of interest, in its
natural real-life context (Crowe, et al.,2011). Thus, a key informant interview guide will
be made for the in-depth interview of key informants which will be conducted in-person
for qualitative data. In addition, secondary data will be evaluated to further collect data
necessary to answer the queries in this study.
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Methodology
According to Yin (1994, as cited in Rhee, 2004), a case study is a comprehensive
research strategy which deals with circumstances that benefit from the prior
development of theoretical concepts to guide data collection and analysis. It is an
empirical inquiry which evaluates a contemporary occurrence in reality, particularly
when the borderlines between a situation and context are not distinctly apparent thus,
it depends on various sources of evidence (Yin, 1994). While Gomm, Hammersley, and
Foster (2000, as cited in Rhee, 2004), case study is research that deals with few cases
in considerable depth. In this paper, researchers will study the contextual conditions or
the case of Iloilo City regarding its best fiscal management practices during the
pandemic.
Participants
A purposive sampling procedure will be used in identifying the participants from
the LGU of the target city in this study. Purposive sampling enables researchers to
select cases that best apply to answer the research questions and to meet the
objectives of the study. Morse (1994) suggests that qualitative researchers use at least
six participants in investigations where the goal is to understand the essence of
experience. Key officials and authorities in Iloilo City who have adequate knowledge
and first-hand experience regarding the fiscal management of their local government
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will be the criteria for selecting the participants of this study. The key informants in the
LGU of Iloilo City includes: the City Mayor, City Councilor under Budget and Finance
Committee, City Treasurer, Budget Officer, City Administrator, City Health Officer, City
Disaster Risk Reduction Officer, Bookkeeper, and City Development Planning Officer.
Setting of the Study
In this study, data will be collected from the selected key informants in the LGU
of Iloilo City. Iloilo City is an urban area, located at the heart of the Philippine
archipelago and serves as a gateway to Panay Island. It is considered as the capital of
Iloilo Province and is a highly urbanized metropolis—the center of commerce, trade,
finance, education and governance in the region (LCP, 2015). Iloilo city is composed of
180 barangays constituting the seven (7) districts of the city, namely: Iloilo City Proper,
Mandurriao, La Paz, Jaro, Molo, Lapuz, and Villa Arevalo.
Data Collection
Data collection will cover a one-week period. Interview guide questionnaires will
be prepared for the conduct of the in-depth interview. The researchers will gather the
data and record the proceedings through a smartphone recorder app. Interviews will
take a maximum of thirty (30) minutes per respondent. This study will utilize these data
gathering tools for better results in identifying the factors that influenced the best fiscal
management practices of Iloilo City during the pandemic.
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Data Instruments
To gather first-hand information and gain deeper understanding of the fiscal
management of Iloilo City’s LGU during the pandemic this study will utilize key
informant interview guide which will be open-ended and self-formulated. The interview
guide will be made up of topics leading to the research questions.
Data Analysis
In data analysis, the recorded responses of the participants will be transcribed,
organized and prepared for coding. The data will be encoded in Microsoft Excel,
organized into categories and developed into themes. Then, an interpretation of the
data will be made. Through this, researchers will be able describe the responses of the
key informants and gain profound insights and deeper understanding of inquiries posed.
Validity and Reliability of the Study
The validity of the study is necessary for assessing the quality and acceptability
of the research (Zohrabi, 2013 as cited in Burns, 1999). To establish the credibility of
this study, the setting, participants and themes of a qualitative study will be described
in detail. According to Creswell and Miller (2000), as cited in Denzin (1989), in thick
description procedure, researchers employ a constructivist perspective to contextualize
the people or sites studied. Peer debriefing will also be applied in this study. A peer
debriefing means the review of research process and data by someone who is familiar
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La Paz, Iloilo City
with the research being studied and also provides support, plays devil’s advocate,
challenges the researchers’ assumptions, pushes the researchers to the next step
methodologically, and asks hard questions about methods and interpretations (Croswell
and Miller, 2000 as cited in Lincoln and Guba, 1985). In this paper, the thesis adviser
will serve as the validator in the peer debriefing procedure. Moreover, to further
determine the trustworthiness of the process and findings of the study an audit trail will
be employed. In establishing an audit trail, researchers are required to supply the paper
with documentation of all research decisions and activities (Creswell and Miller, 2000).
In this research, evidence of the audit trail will be attached in the appendices section of
the paper.
The reliability of the data and findings is considered to be one of the main
requirements of a research (Zohbari, 2013). To ensure quality and content validity of
the research data saturation must be reached. It refers to the point in the research
process when there is no longer new information found in the data analysis and the
redundant gathered information signals the researchers to stop the data collection
(Faulkher and Trotter, 2017). Data saturation is achieved when there is sufficient
information to replicate the study (O’Reilly and Parker, 2012; Walker, 2012, as cited in
Push and Ness, 2015), when the ability to gather additional new information has been
acquired, and once further coding is no longer feasible (Guest, et al., 2006, as cited in
Fusch and Ness, 2015). In this study, interview will be the method to reach data
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saturation. Thus, interview guide questions are structured to facilitate asking
participants the same questions in order to achieve data saturation (Fusch and Ness,
2015).
Ethical Considerations
Ethical Considerations will be applied in the conduct of the study; a letter will be
sent to the mayor of the said city for the approval to gather data. A separate letter of
consent will be sent to be signed by the key informants expressing their willingness to
be interviewed. Also, a letter of request for needed documents from the concerned
personnel in Iloilo City Office will be sent. The study will be conducted based on the
participants’ availability or convenient schedule. Data about name and office
designation will be requested from the participants; however, writing of names will be
optional while information about office designation will be requested.
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CHAPTER 4
RESULTS AND DISCUSSIONS
This chapter presents the research findings of the data collected from the case study
samples. This part of the research study contains: (1) Participants’ Profile; (2) Good
Local Leadership (3) COVID-19 Pandemic and Its Effect (4) Prioritization of Funds ; and
(5) Integration of Theory in relation to Themes.
Participants’ Profile
The sample for this study consisted of nine (9) participants who are key officials
and authorities in Iloilo City and have adequate knowledge and first-hand experience
regarding the fiscal management of the local government. The purposive sampling
allowed the Researchers to purposively select this sample. However, due to
unavailability and time constraint, the researchers only conducted an interview with 7
participants whose assigned offices and information were the following:
Participant A, female, is Iloilo City’s Assistant Treasurer. She is an employee of
the City Treasurer’s Office whose primary responsibility is to take control of the city's
funds and manage them properly. Additionally, the office is responsible for allocating all
the city's finances. It is responsible for maintaining and updating the city's tax
information system.
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Participant B, female, is one of the tenured officers in the City Budget Office who
is assigned in ensuring that objectives, priorities, expenditure ceilings and fiscal targets
on income are met, the City Budget Office issues budget calls and analyzes all budget
proposals to condense them into the Executive Budget. The Office keeps track of all
appropriations releases, keeps tabs on them, reports them, and assesses their success
in comparison to the approved annual budget.
Participant C, male, is Iloilo City’s Administrative Officer III. He works under the
City Administrator’s Office that assumes responsibility for managing, directing, and
coordinating the tasks performed by the Administrative Division, the Management Staff
Coordinating Division, and the various office projects.
Participant D, male and a medical doctor, is the Assistant Department Head of
the City Health Office (CHO). The CHO’s duties include developing and putting into
effect policies, plans, initiatives, and programs to improve the health of the city's
residents as well as carrying out and upholding all laws, ordinances, and rules related to
public health.
Participant E, male, is the Coordinator of the City Planning and Development
Office. The function of the office is to assist the city's socioeconomic programs and
other areas of growth, such as agriculture, infrastructure, and fiscal management, grow
and advance. Plan, implement, and evaluate programs for economic and social
development in a coordinated and integrated manner.
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Participant F, female, is the City’s Accountant. She leads the operations of the
City Accountant’s Office. The preparation of Financial Statements in conformity with and
in compliance with the Philippine Public Sector Accounting Standards (PPSAS) is the
responsibility of the City Accountant's Office. Additionally, they are in charge of
accounting and internal audit.
Participant G, male, is the focal person of the Mayor’s Office assigned in COVID-
19 responses. He is also the Participant D of this study. The Mayor’s office is
responsible for the coordination and creation of citywide policies, directing and
overseeing all city services with a focus on their quick and effective delivery, and
controlling the management of the city's fiscal policy.
Furthermore, a table is presented below to show the offices represented by the
participants during the conduct of the study.
Table 1. Participants’ Assigned Offices
PARTICIPANT OFFICE
A Officer, City Treasurer’s Office
B Officer, City Budget Officer
C Officer, Administrator’s Officer
D Officer, City Health Office
E Officer, City Planning and Development Office
F Officer, Office of the City Accountant
G Officer, Mayor’s Office
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Themes
This part of the chapter presents the finding and analysis of the data obtained
from the key informants. The data were extracted and analyzed according to the
objective of the study. Three (3) themes with corresponding sub-themes, emerged from
the participant narratives:
● Good Local Leadership
● COVID-19 Pandemic and Its Effects
● Prioritization of Fiscal Resources into COVID-19 Responses
1. Good Local Leadership
According to Shalom (2015), good leadership reflects a broad vision and clear
objectives. While a leadership is effective if it established and developed a commitment
upon an agreed course of action among all, especially among the constituency (Svara,
1990; Franek, 2005; Svara, 2006; Haus & Sweeting, 2006 as cited in cited in Shalom,
2015). In this theme, the leadership of the local chief executive was being recognized
by the participants to have made the most contribution in the success of Iloilo City in
fighting against COVID-19 pandemic.
Almost all of the participants in the study emphasized the importance and
significance of a strong and visionary local leadership by the city mayor and the
barangay captains. One participant highlighted that the city executive’s experience have
made a significant impact in the mitigation of the pandemic and fiscal management:
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La Paz, Iloilo City
“I must say political leadership. I also think about the experience of

Mayor Jerry in his dealings with the national government. At one
time, he became president of the League of the Cities of the
Philippines and then he also he became a congressman, so he knows
how budgeting in the national government works and so he
anticipated certain problems because of this knowledge and so he
was able to make some proactive measures at this level”
Participant E
Subsequently, another participant added that the mayor’s vision contributed
greatly to the pandemic response of the city. He described the mayor’s vision as a
significant factor and strength in mitigating the fiscal resources of the city for the
pandemic:
“Actually, it is the mayor’s leadership. His vision was great

because he was in charge of leading us -the employees. So his main
focus is on how to address the situation, the pandemic.”
Participant F
This was also supported by another participant who states that one of the major
strength of the Iloilo city government in the fiscal management during the pandemic
response is the commitment of the city mayor to look for ways, allocate necessary
budget and funds for the local government:
“Our main strength is that … of course, it comes from the chief

executive because he was very much committed when it comes to—
to address the issues of the pandemic. In fact, he was doing all of it
—Did you see the facilities?, he was doing everything he could.”
Participant B
In addition, another participant also mentioned that it is not only the mayor’s
initiative and efforts but also of the barangay captains and heads were the local heads
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became the vaccine managers of their respective barangays and their vaccination
areas:
“Of course, it is still in the leadership of the mayor, which is the most
important, as well as ang sa barangay. The leadership in each
barangay was there. We mobilized all the captains, the barangay
captains. Barangay captains were assigned as vaccination managers
to their respective vaccine sites. “
Participant D
The statement was also supported by another participant who quoted that aside
from the chief local executive’s initiative, there were also the barangay heads who were
in place and acted accordingly to the situation which became the strength of the local
government:
“First of all the main strength of the city government is the

responsive characteristic and the performing ability of the mayor.
Aside from that, and the second strength of the local government is
the barangay officials who are well in place”
Participant C
Furthermore, as found in the study of Beer and Clower (2014), leadership in the
local level is seen to be focused on the goal of improving economic, and potentially
other, outcomes; it tends to be collaborative rather than hierarchical – that is, it
involves collaboration across a number institutions, individuals and firms. The following
sub-themes discuss the united efforts of the departments in the city government, the
coordination of Ilonggos, and the cooperation of the private sectors which affected the
performance of Iloilo City.
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1.1. Unity of the Departments, Constituents and Community
Empowerment
Based on the data gathered, it showed that the participants of this study had a
unified sentiment regarding the emergence of unity and solidarity amidst the COVID-19
pandemic between various government departments, both public and private sectors,
the constituents of Iloilo, and the Ilonggo community as a whole. One participant
highlighted the said trait and considered it as a factor that contributed the most in the
success of Iloilo city during the global crisis:
All of the departments. They united—unity, right? When there’s unity,

there’s progress, right? So, unity; at the same time, the
management, of course. Mayor is very assertive; to control and
contain COVID.
There’s unity to combat COVID pandemic. [It] should not spread.
Participant A
According to this participant, one of the strengths of the of Iloilo City’s LGU that
contributed the most in the success for the effective pandemic response was the fact
that the Ilonggos displayed solidarity regardless of the differences — political, being the
definitive distinction mentioned— for the sake of Iloilo city’s wellbeing; emphasizing
that this was thanks to the strong leadership of the chief executive.
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“First of all, is the responsive leadership of the mayor. As the chief

executive, that is the strength of Iloilo City—a performing and
responsive mayor. The second strength is our barangay officials. At
first, when we say barangay captain, barangay kagawad, your
affiliation is limited to politics. If you are red, you are red; if you are
white, you are white. This time around, because of the leadership of
Mayor Jerry Treָָñas, we disregard whether you are red or white; it'’
an all-out support and understanding that we only have one city to
live in. It is instilled in the minds of all employees and barangay
officials that this is a real threat and this is the first time that it has
happened all over the world. So, that's why this is one of the
strengths—Ilonggos are united because of that.”
Participant C
Furthermore, the various government departments did outstanding work in the
response to COVID-19 as it entered Iloilo City. Two participants delved into the details
on what the city government did to ensure that their preventive measures and response
is indeed effective. They stated that the mayor had an emergency response team which
consisted of different departments such as doctors, lawyers, CDRMMO, and barangay
officials among others. They considered this aspect as one of the strengths of Iloilo city
during the pandemic.
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“So, the mayor made an executive order, different departments came

together alongside doctors, from the CDRRMO, barangay captains,
and the emergency response team against COVID in the barangays.
So, the one monitoring that, the mayor put me in charge as
manager, so I oversee all of them.”
Participant C
“The success was the cooperation of all of the departments. Because

during that time, the approach that we did was cluster approach and
it’s not only the health sector that got mobilized.”
“So, in this cluster approach, the burden is not solely on the

shoulders of one office with the COVID response. The entire
departments of the city hall were in cooperation doing the COVID
response. All hands on deck.”
Participant D
The cooperation and coordination of the Ilonggos during the pandemic was
considered one of the strengths of Iloilo City’s LGU. This manifested in the willingness
of the Ilonggos to help the city in order to combat the spread of COVID-19. One
participant highlighted the trends that the Ilonggos participated in as the bayanihan
spirit naturally emerged during the crisis.
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“I think the other things we can attribute is the spirit of the Ilonggos,
the resilience of the Ilonggos really helped. Not only the resilience
but also the spirit of charity. You remember the community pantry?
Before it became a trend in Manila, we already had our own kind of
community sharing. And then, the support to the leadership [of the
mayor]. While it is important that the leader gets heard, gets
supported, it also depends on the followers. No matter how strong a
leader may appear, if the followers refuse to listen and don't believe
in him, it’s not good; you won’t get support. But you know, the
Ilonggos are also very intelligent, I will say, while he [the mayor] is
discerning and he is good at calculating things, he is also very
trusting and confident with what type of leadership he is doing, this
makes for a good rapport.“
Participant E
1.2. Private, Public, and Government Partnership
Most of the participants also highlighted the significant partnership and effort of
the private sectors, NGOs, and the public to extend fiscal resources for the city
government which became useful in increasing the funds for the COVID-19 pandemic
response. One participant enunciated that the collaboration of the private and public
sectors for the pandemic response and the fiscal management of the city government
have played a vital role:
“It is important to have collaboration with the private sector. Usually,

during the time of the pandemic, we created another committee for
the business continuity of the Iloilo City but prior to this, there was a
time where you heard that the IATF was directly alerting the alert-
level status of which establishment or place would be closed or open,
depending on the alert level. So prior to this, we have already
collaborated with our private sectors, the business sectors, banking,
education and also including the hospitals.”
Participant G
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Another participant also recognized the help of the private sectors for the
monetary budget funding the travels of the stranded individuals, medical supplies and
foods which are essentially lacking in the city government during the pandemic and had
made a great impact in the mitigation of the pandemic and the constraints of the
budget:
“Now, at that time also knowing the limitations of our budget, the
mayor called on the private sector, so this was, I think, the most
important aspect which seeked help from the private sector to
participate and be bold in looking after the community. You will
recall, even logistics are provided by the private sector when there
was a need for food items to be distributed to the barangays and the
private sector responded significantly, providing even cooked food at
that time, our local restaurants gave out cooked food, and then
grocery items, water for example, even medicines and vitamins, I
recall. Then also, the fashion designers responded by making PPEs
and facemasks, to do this, the merchants selling fabrics provided
supplies for free and helped in making supplies such as protective
gears and equipments for the citizens”
Participant E
Hence, they mostly agreed that private sectors such as businesses, private
persons and organizations, and other non-government organizations have made an
initiative to help the city government in the fight against the COVID-19 pandemic by
donating and providing financial resource to the local government and made a
recognizable impact to the city:
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“So, very practical. During that time, we are looking for our resources
because of its importance in the responsive, efficient, and effective…
strategic action against COVID. With that, we acknowledge all of the
business community that helped and provided funds, by donation, to
the city government.”
Participant C
1.3. Fiscal Measures, Initiatives, and Practices Against COVID-19
Fiscal policy entails the use of government expenditure and taxation to affect the
economy, particularly macroeconomic conditions. These include employment, inflation,
economic expansion, and the total demand for goods and services (Hayes, 2022).
According to the studies conducted by Debuque-Gonzales, et. al (2022). The
COVID-19 pandemic offered a significant shock to economies around the world, yet as
governments concurrently sought to lessen the impact of the public health crisis by
increased social and stimulus spending and expansionary monetary policy.
Iloilo City has been recognized as the ‘Wakanda of the Philippines’ amidst
COVID-19 pandemic because it still produced prudent fiscal responses and practices
despite the unstable economy and the presence of a global health crisis.
Participant A emphasized that during the year 2020, or the peak of the COVID–
19 pandemic, Aside from allocating budget in purchasing vaccines, the Iloilo City LGU
utilized both the General Fund and the Special Education Fund (SEF) to sustain the
effects of the pandemic. General funds were allocated to barangays for COVID response
and SEF is used to provide assistance to students for long distance or modular learning:
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“Since 2020 is the peak of the COVID time, the city government
allocated… we have an allocation for vaccines… Then there is the
SEF… we used it to purchase computers for students because face-
to-face [classes] are not allowed. For the General Fund, we allocated
funds for the barangay for the COVID response… We have mobilized
the Quick Response Fund.”
Participant A
Another area that needs allocation of budget is the needs of the constituents
during the pandemic. The city has been responsible in giving aids and assistance to
Ilonggos who were affected by the pandemic by providing for their needs during the
quarantine:
“... our… affected persons… you need to take care of them, right?
We have to feed them. We provide them with all the necessary
things that they need during the time that they are in quarantine.”
Participant A
Contact Tracing has also been given its part on the budget allocation. The
budget has been allocated, also, on the construction of molecular laboratories for swab
testing. As emphasized by the participant, the City Mayor instantly put up a molecular
laboratory for a quick swab testing for the Ilonggos:
“The Mayor is very alert when it comes to swab testing… That is why
he [put up] a molecular laboratory instantly so that it will be quick [to
get the COVID test results]… You have to emphasize that we have
our own laboratory. That is why we have our swabbing center in La
Paz.”
Participant A
Technology has been utilized, as well, to mitigate the impact of the pandemic. It
was mentioned that meetings of the financial committee were done through online
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platforms. In addition to this, e-payment was launched last December 1, 2022 for
Electronic Business Permits and Licensing System(E-BPLS) to avoid contact and
interface while continuously receiving payment from business taxes and processes:
“... we introduced… the launching of the IBPLS. Now, we have e-

payments. We want to avoid the interface.”
Participant A
The immediate response of the Local Chief Executive of the City has been an
integral part of the success of the fight, although it is still ongoing, against the
pandemic.
“First and foremost, when the news about the COVID outbreak
spread, as early as February 2020, he called an emergency meeting
because he sees it already as a worldwide threat, although other
[cities] did not respond yet. During the time that Russia and
Mongolia closed its borders, he seems to have a vision because
Russia has closed. So, he called on a meeting to all the experts in
health, in community response. The CDRRMO, the PSTMO, Liga ng
mga Barangay, offices under the City Mayor. He exhausted all the
human resources… Last 2020, the Mayor gave orders to check all the
remaining budgets that were unused last 2018. He then told the
Accounting, Treasurer, and Budget to study and separate because for
him, the National Government is still not responding… He realigned
everything and made an executive order and passed it through the
Sanggunian stating that those budgets will be used for COVID
response. That is why we are prepared.”
Participant C
During the COVID outbreak, the City Mayor has called on the National
Government to take immediate response:
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“The other measure that the Mayor did is to really call on the national
government. There was a time when he was very demanding at
times, if you can call it, because we were really in need of emergency
action, urgent action, that at that time the national government was
a bit, sad to say, was not that prepared.”
Participant E
2. COVID-19 Pandemic and Its Effects
Global lockdowns and mobility restrictions were enacted as a result of the
COVID-19 pandemic to stop the virus' spread. Governments must choose between
implementing economic recovery programs and health policy measures to stop the
virus' propagation and make sure it won't overwhelm the healthcare system when
economies slowly begin to recover. The most severe lockdown, which was in place from
March to April 2020, had a negative impact on the economy, but soon after, limitations
on economic activity across the nation generally loosened. However, there are still
minimum requirements for business operations, particularly for the number of
customers that can be accommodated in service facilities (de Lara-Tuprio, et. al., 2022).
This theme discusses the further effects of the pandemic. In particular, it will
discuss the effects on the economy and the human resources which first handedly
decides on the fiscal measures of the city.
2.1. Shortage in Fiscal Resources
All participants have mentioned the direct effects of the COVID-19 Pandemic to
the offices that they are assigned and to the operations of the Iloilo City Hall, in
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general. Specifically, the participants highlighted that the tax collection was not good
during the peak of the COVID-19 because there are extensions set for the payment of
taxes and amnesties were given to businesses. In particular, a participant has
mentioned how COVID-19 has affected their collection of fees and charges to
businesses:
“So, when it comes to fiscal management, there is a difficulty in

collecting fees and charges, right? That is the Number 1 challenge!...
We provided extension of deadlines… on businesses… through an
ordinance… We also provided amnesty for real property tax. How
many times did we extend to give way to our taxpayers that even if it
is already beyond the deadline, they can still pay without penalty or
surcharges because these are a very big amount for our people…”
Participant A
Furthermore, the same participant highlighted that the income of the City was
lessened during the peak of the pandemic because some economic activities were
stopped or postponed. The participant stated that the City was unable to conduct
auctions for real properties and inspections for businesses were temporarily put to rest:
“We did not conduct a public auction, this auction, on real

property, for those delinquent properties. So far, only that–there are
no inspections… for businesses were done… those are during the
peak of the Covid-19.”
Participant A
Another participant mentioned that they did a budgetary constraint, as a
response to the needs of the City to combat the pandemic. Moreover, the participant
mentioned that it is a challenge because these priorities were not done before:
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“The thing is, before [the pandemic] you were not spending money
for that, like you are going to implement a lockdown and everything.
You were not spending money [before the pandemic] on barangays
in order to feed them because they are on a quarantine. We did not
have those.”
Participant F
In addition, a participant emphasized that the main problem is the lack of fiscal
resources since Covid-19 was unforeseen, therefore the LGU did not prepare such an
emergency fund to respond to the effects of the pandemic. Although there are
emergency funds, it is not as big as what is needed to fully sustain the pandemic:
“We really have a big problem regarding the Covid-19 in terms of our
fiscal resources, our money/funds because we did not prepare, that
when we have a Covid, we should prepare. We just used the
emergency fund that is already there in CDRRMO. It is 5%, I think”
Participant C
He further said that plans were made by the Iloilo City LGU irregardless of the
lack of funds to implement the plans. But, it has not come to the point that they
borrowed money from any person or institution because there were volunteers from
private sectors both from local, national, and international who provided monetary
donations:
“... We have continued planning, even if there is no money. But, the

Mayor is a risk taker. If he needs to borrow money to save the City,
he will. But we did not end up in that situation. This is because when
the business community saw [the struggle], they helped. If you will
think about it, it came from Ilonggos around the world, they sent
help to the Mayor.”
Participant C
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Another problem that time was the low revenue, especially those coming from
the business sectors because businesses were not doing well since people are afraid of
going out of their homes for a possibility of being infected by the virus:
“During the pandemic, what was also challenging for us is the

prevailing fear of the people of going out, of patronizing businesses,
and these affect our businesses. People are scared [to go out] and
buy. There is too much fear…”
Participant E
In line with this, there were also businesses who were forced to close because
their income cannot sustain their operations, a situation which further led to the low
amount of taxes and fiscal resources for the City to utilize:
“The problem [on fiscal management] only arose during 2021

because, of course, the basis [of the IRA] is the income of the City in
the previous year [2021]. So, [during 2020] there are lockdowns
which resulted in lower tax collection and businesses are down. That
is, perhaps, the problem with regards to budgeting.”
Participant D
3.2 Workforce Limitations
During the peak of the COVID-1 pandemic, the workforce has been shaken
tremendously. This led to unstable human resources, especially to the Iloilo City LGU.
Remote setup was practiced and utilization of online platforms were implemented. A
participant mentioned that it poses difficulty and is a challenge on their operations to
plan, budget, and respond to the crisis:
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“One is certainly, at that time, [we are] very strict regarding face-to-
face, so we had to rely on zoom meetings. I think the most
challenging part there is that sometimes [in] the zoom meetings, the
internet is very slow. This poses a problem for us and you know… we
cannot interact well during the zoom meetings, and it’s almost a one
way communication.”
Participant E
Furthermore, a participant highlighted that during the peak of the COVID-19
pandemic, the Iloilo City Government are not able to send personnels to give out
summons to delinquent businesses:
“We cannot send out personnels to deliver the summons. Summons

[are] number one, eh. So there are demands from us to the…
deliquent[s]. We cannot send out our personnels because we need to
avoid [close contacts]... to contain the COVID.”
Participant A
3. Prioritization of Fiscal Resources into COVID-19 Responses
The Local Government Code of 1991 mandates that LGUs shall formulate sound
financial plans, and local budgets shall be based on functions, activities, and projects, in
terms of expected results (Section 305 [a], LGC of 1991). Included under this theme
are the methods and approach that the city government adopted leading the city to be
recognized for their best fiscal management practices during the pandemic.
Hence, it is worth noting, as mentioned by all participants, that Iloilo City has
realigned its funds to supplement activities needed for COVID 19 response and all funds
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for unnecessary projects or least important things were immediately put into use for the
aforementioned purpose. Particularly, Participant D enumerated the things which are
given the most importance:
“All unnecessary programs [and] activities were stopped and the

budget was realigned with the COVID response because we need a
lot of human resources for health, [we need] a lot of vaccinators.
And we realigned the budget to put up modular hospitals, this is not
something to be taken lightly because we need to procure materials,
equipment, and also to hire nurses [and] doctors for that [modular
hospital]. This is why the budget for COVID response must be
prioritized.”
Participant D
Hence, participants are in agreement that the focus now is centered to prioritize
the protection of life against the virus through funding the most needed services,
materials and equipment by sacrificing the funds for non-essential PPAs (projects,
programs and activities). By this, participants mean the things that bears the least
priority during the emergence of the pandemic an example was stated by Participant C,
he said:
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La Paz, Iloilo City
“The mayor mandated that there should be no unnecessary travel,

training and seminars in the city because his priority is for the COVID
19 [response]. So, all travels [activities] of department heads,
tourism [entertainment, recreation, tour activities], and everything
were ceased and the funds for these were realigned to that [COVID
19 response]. The things [budget] for training was transferred and
added into the budget of the City Health Office and… other excess
funds which were appropriated was realigned to that [COVID 19
Response].”
Participant C
He also added that the departments of city hall were given only enough budget
to keep their operations working:
“The only budget that was left for the City Hall Office was the
minimal fund to keep all the office operations working, all the rest
were allotted for the COVID 19 response.”
Participant C
3.1. Tightening of the Belt: Adaptation of Austerity Measures
Participant E strongly believes that one of the most effective fiscal measures that
the city government adopted was the austerity measures. In concurrence with the other
participants, Participant E mentioned that this measure includes non-essential activities
of the said LGU like travels for training and sports events were avoided. He even
supported his claim as he recalls that “ the local chief executive issued an executive
order (EO) mandating that all departments must observe the said austerity measures.”
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In addition to that, aside from the realignment of budget from non-essential
PPAs, all excess funds for projects and infrastructures were also separated and were
allotted for the response for the pandemic and these were done through an EO as well:
““…the excess [fund] from the projects was separated, the excess
[fund] from the infrastructures was separated, the projects which
were identified as least important—all [funds] were realigned and
everything was done through an executive order and was passed by
the Sanguniang [Panlungsod] to be used for the COVID-19
Response.”
Participant C
The best fiscal practices of the city government, according to Participant C, is the
prioritization of the direction for pandemic response and spending of money based on
what is really needed. While Participant B even stressed that tight budgeting was
indeed considered. A participant also pointed out, when asked about the budget
allocation, that “…the utilization [of funds] must be used as it is” suggesting that the
funds must be used according to its certain purpose.
Also, another participant mentions the concept of zero-based budgeting method
—a budgeting process that allocates funding based on program efficiency and necessity
rather than budget history (Ibrahim, 2018). His statement posts a significant similarity
to the assertion of other participants by saying that:
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“Well, what we call zero-budgeting—making sure that we live within

the needs, we avoided the unnecessary expenses and our money
that was programmed to be implemented was indeed implemented
for the intended uses. Let’s say, nothing was wasted [because] the
mayor monitors [the spending] to make sure that they get used.”
Participant E
3.2. Prudence in Spending and in Actions
Participant B highlighted that their department has issued a recommendation to
the city mayor applying prudent spending. According to her it does not imply the idea of
penny-pinching but to prioritize only those of which are absolutely necessary:
“We issued before a recommendation to the mayor that we apply

prudent spending of resources which means [we spend] only for
what is necessary. It’s not about stinginess but [to spend] only for
those that is absolutely necessary. Of course, during that time, there
was no… no travel [activities] because of the lockdown so we can
save [money] from our travelling expenses and training expenses
because there was no face-to-face [activity].
Participant B
In addition, Participant D & G emphasized that all decisions made everyday are
based on scientific data. According to them, they have updated the number of cases
daily and meet among the COVID Team to discuss the cases one-by-one. They said,
“through this we were able to easily identify the source of infection and contacts
leading to a systematic implementation of isolation and treatment.”
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Moreover, Participant D described how and why they came up with a vaccination
strategy. He said that they have paired up with the University of the Philippines,
EpiMetrics, National Resilience Council (NRC) to set up a vaccination priority based on
recorded data—allowing them to identify which barangay needs to be vaccinated first to
mitigate the spread of virus. He emphasized that:
“Our implementation [of vaccination] is data-driven and not just

whoever you want to vaccinate.”
Participant D
Integration of Theory in relation to the Themes
Principle of Transparency, Accountability, and Predictability
The Iloilo City Government was recognized by Bureau of Local Government Finance
(BLGF) for Best Fiscal Management Practice in responding to the pandemic. An award
given for the efficient use of funds and resources at the height of COVID-19 crisis. As
reflected in the results from the data, aside from the leadership of the mayor, one of
the prominent features described by the key informants is the correct and efficient way
of allocating funds from what was deemed unnecessary and insignificant (from that
time being) projects to be of use for the COVID response; in other words, a strong
financial management practice.
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The financial management system underpins good government and good business. It
does so by ensuring that (internal and external) stakeholders can understand and
control how well an organization plans for and uses financial resources. In practice, this
means that the right information is provided at the right time to the right people (the
supply side) and that the information provided is then considered and used in
understanding and controlling the organization (the demand side). In the case of Iloilo
City, it reflected four major practices that were the factors for its success: budget
management, financial controls, value management, and governance and
accountability.
Budget management means managing the sources of funding and expenditure, and
allocating those resources in line with organizational priorities and their cost
effectiveness. Effective budget management happens when funding and expenditures
are in line with strategic priorities and based on a clear understanding of performance
expectations. Iloilo city displayed effective budget management as it prioritized the
COVID response projects and most of the funds were allocated specifically for that.
Financial controls mean rules, processes, and procedures that address risks and assure
that financial resources are being recorded and used in the right way, for the right
purpose, and at the right time. Value management is the process of measuring,
prioritizing and allocating financial resources based on the expected cost-effectiveness
or value for money (VFM) to be derived. This occurs within public entities and
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throughout the whole of government (the "system" level). It includes those practices
referred to as "strategic financial management" and makes transparent how well
financial costs are transformed into services, outputs, and outcomes.
Governance and accountability mean roles, responsibilities, delegations, and decision-
making structures through which strong financial management can be introduced,
practiced, and overseen. All of the aforementioned factors were integrated in the
performance of Iloilo City during the pandemic, as supported by the results of the
study.
Furthermore, this study corresponds to the Philippines’ Public Financial Management
(PFM) Reform Program which aims to improve efficiency, accountability and
transparency in public fund use in order to ensure the direct, immediate, substantial
and economical delivery of public services especially to the poor.
As stated in the theoretical perspective of the study, the principle of transparency,
accountability and predictability which was lay-outed by Al-Hemiary(2010) would be
some of the expected functions of the local governments to promote good governance.
During the gathering of data, the researchers found out that the principles were deeply
implemented by the city government and became their common goal, during the surge
of the pandemic in their best practice for fiscal management.
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First, fiscal transparency is of the utmost importance when responding to the
pandemic, as explained in a recent note by the Fiscal Affairs Department of the
International Monetary Fund, which stressed the importance of proactive disclosure,
accountability and democratic legitimacy. Transparency in the decision-making process
promotes honesty, integrity and competence, and discourages wrongdoing.
Transparency refers to the availability of information to the general public and clarity
about government rules, regulations, and decisions. The researchers found out that the
city government’s transparency made people trust the local government. With the
transparent processing of funds, projects, and initiatives, the locals and the community
became trusting to the city government that private sectors, NGOs and private
individuals would directly donate to the city government, without hesitation, in support
for the city government to combat the threats of the pandemic. One of the major
objective of transparency in the city government, as mentioned by some of the
participants, is it reduces uncertainty and can help inhibit corruption among public
officials, thus, made private institutions, the public and NGOs, non-hesitant to the city
government officials and supported them, financially, or in any way they can.
Second, accountable local government according to the findings of the study
starts with a responsive and committed local executive. This principle make public
officials answerable for government behavior and responsive to the entity from which
they derive their authority. According to some of the participants of the research study,
the leadership of the city mayor became one of the major factors why the Iloilo city was
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successful in its fiscal management during the surge of the pandemic. They believed
that the mayor did all the efforts to lead and guide them in the fight against the
pandemic, and in such a way, was awarded as one of the successful cities in the
country with the best fiscal management practices. As seen in the responses of the city
government to the pandemic, the government has made its way to answer to the needs
and priorities of the city and has accounted for every decision they are making for the
people. In effect, the constituents of the city government appreciated and applauded
the LGUs mission and achievement to successfully respond and allocate resources in the
fight against the pandemic.
Lastly, according to the findings, the participants highlighted one of the major
factors why the city government has been successful in their fiscal management during
the COVID-19, that is they already have plans, budget and resources which they
prepared even before the pandemic and that there have been new regulating rules to
suppress the effects. The importance of regulating rules and policies to limit mobility of
the people, work and school so that the pandemic could not grow and increase its
infection, have made way for the city government to mitigate its effects. They
mentioned that the mayor’s vision and predictable character in promotion for good
governance made results during the pandemic since the local government was ready
and prepared for the surge of the pandemic.
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Chapter 5
SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS
This chapter of the study contains the following: (1) Summary of the study; (2)
Summary of the findings; (3) Conclusion and; (4) Recommendations
SUMMARY OF THE STUDY
The main objective of the research study was to determine and identify the best
fiscal management practices of Iloilo City amidst the COVID-19 pandemic through the
three (3) research questions listed as follows:
1. How did the LGU of Iloilo City respond to the COVID-19 pandemic in terms of
fiscal management?
2. What are the issues and challenges faced by the LGU in the fiscal
management division of Iloilo City during the COVID-19 pandemic?
Research Question 1 identified the efforts and actions of the city government in
terms of responding to the rising effects of the pandemic vis-à-vis managing the fiscal
resources. Results of the study also identified how this affected the plans and priorities
of the LGU in terms of budgeting. In addition, participants were able to point out the
strengths of Iloilo city’s LGU and its application and the factors that contributed to the
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success during the pandemic. Research Question 2 identified and described the
challenges in the fiscal management and how the Iloilo city government handled the
problems. Finally, Research Question 3 enumerated and described the best fiscal
management practices of Iloilo city which drew attention and garnered an award for the
city’s efficient budget allocation amidst the COVID-19 pandemic.
Summary of Findings
The findings of this study are based on the interpretation and analysis of data
obtained through the process of semi-structured interviews of seven participants. From
the data collected, the researchers were able to identify three themes that emerged
from the answers of the participants.
As asserted by all participants, the LGU of Iloilo City made a success in
responding against COVID-19, aside from receiving various awards and recognitions, a
participant even highlighted that LGUs from other regions are visiting to benchmark and
to learn from the city government especially on how they have handled the pandemic.
To answer the research question one (1), the LGU of Iloilo City responded to the
COVID-19 pandemic through good local leadership. There were various efforts taken;
however, participants believed that all these endeavors were properly led, initiated and
motivated by the local chief executive. The participants repeatedly emphasized that the
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leadership of the mayor is one of the strengths of the city. They described him as a risk
taker, committed, strong and has the culture of excellence and success.
In terms of fiscal management, data collected indicates that one of the factors
that influenced the good leadership of the mayor was his political background. A
participant emphasized that the mayor once became the president of the League of the
Cities of the Philippines and he also became a congressman thus, he is knowledgeable
on how budgeting in the national government works. Hence, the mayor is committed to
look for ways on how to find sources for the pandemic response and to have an
efficient allocation of budget and funds. In addition, findings also show that good local
leadership has reached and influenced the roots—the barangay. A participant quoted
that barangay captains were mobilized and became vaccine managers in their
respective communities. Participants believed that barangay captains are well in place—
they acted accordingly and there was unity despite the political differences.
With regards to unity, according to the collected data, unity among departments,
among the constituents and between public and private sectors has paved the way for
the city government to effectively manage and utilize the funds. According to two
participants, the preventive measures and response implemented by the city
government were indeed effective—the creation of an emergency response team
composed of members from various departments, medical practitioners, lawyers,
rescuers, and barangay officials among others. In fact, a participant enunciated that the
successful coordination among various departments was because they have adopted
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the cluster approach. Cluster approach aims to strengthen system-wide preparedness
and technical capacity to respond to humanitarian emergencies, provide clear
leadership and accountability in the main areas of humanitarian response (OCHA
Services, 2020) and this approach distributed the task not only to the health sector
instead the entire departments was in cooperation in doing COVID-19 response.
Moreover, the participation of the Ilonggos was also cited by one participant, he
pointed out that the resilience and bayanihan spirit of the residents, especially, their
support and belief in the leadership of the mayor were part of the strengths of the city
government in combating the global crisis. He even described Ilonggos as very
intelligent and well-discerning hence, they have confidence and trust in the leadership
of the LGU. Therefore, these resulted in a good rapport between the city government
and among its constituents.
The way that the city government manages their version of “flattening the curve”
has made an impression nationally and internationally. These efforts were given a
spotlight during the interview and the participants were even proud to share the
reasons behind the recognitions they have garnered. First, a participant recalled that
the local chief executive made an immediate response, such as calling for a meeting
among the health experts and other departments to discuss possible threats. He also
pointed out that the office of the Accounting, Treasurer and Budget was ordered to
study and separate funds, then he made realignments through an executive order
mandating that a certain budget will be used for COVID-19 response. Next, during the
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peak of the global crisis, aside from the allocation of budget in procuring vaccines, the
city government had utilized the general fund for barangay COVID-19 response and SEF
for student assistance. In addition to this, a budget was allocated for contract tracing
and construction of molecular laboratories for swab testing—this was implemented for
free. It is also worth noting that the issues about the limited resources were resolved
through the help of the private sectors. It was seen that regardless of the lack of funds,
the city government still prepared and planned for COVID-19 response. In fact, one
participant proudly emphasized that the LGU never had an option to borrow money
from any other institution. The mayor called on the private sectors and they have
directly partnered with the city government to mitigate the effects of the virus. Others
even volunteered because the city government made an impression of transparency
and accountability thus, people who see this trusted the leadership and management of
the LGU. They have boldly participated in looking after the community, as described by
one participant. For the challenge regarding technology, it was only later on this year
that the city government launched an e-payment system—E-BPLS to resolve issues in
minimizing face-to-face contact while ensuring that collection of business taxes is
ongoing.
Moving forward, with regards to research question number two (2), the findings
of the study identified the challenges faced by the city government not only in the fiscal
aspect but also to the activities of the LGU. First, all participants are in agreement that
they had a hard time collecting taxes though they had adopted measures such giving
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deadlines and extensions without penalties. Second, the revenue of the city government
had decreased because operations of economic activities were ceased and/or
postponed. Third, a participant mentioned about doing budgetary constraints in
response to the needs of the City to fight against the pandemic. The participant
mentioned that they were then spending money implementing lockdowns and to feed
people who were under quarantine. The priorities had changed when the pandemic
entered the borders of the city and the LGU had to adopt measures and activities which
were different from the usual programs and activities of the city government. In relation
to this, the fourth challenge, as mentioned by another participant, was the lack of fiscal
resources while they only had the emergency fund from the CDRRMO when the virus
entered the city. While in terms of human resources, a participant stated that the city
government cannot send out personnel to deliver summons to delinquent businesses
and some participants expressed their difficulty in doing their duties via screens or via
online platforms. The challenge in planning, budgeting and in responding to the crisis
was doubled and, according to participants, during meetings, they cannot exchange
ideas properly and it was almost a one-way communication because of the internet
connection issues.
To answer research question number three (3), the best fiscal management
practices were proudly discussed by the participants. A significant result shows that
these were accompanied by the political leadership of the city mayor—defined as the
most contributing factor in the success of Iloilo City, unity among the departments of
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the LGU having one great goal, and a rational and clear vision towards the priority.
The Local Government Code of 1991 mandates that LGUs shall formulate sound
financial plans, and local budgets shall be based on functions, activities, and projects, in
terms of expected results (Section 305[a], LGC of 1991). As a result, Iloilo City came up
with their priorities in leading their fiscal management. The budget was realigned and
allocated to supplement activities needed for pandemic response, some participants
enumerated the things which were given the most importance: hiring of additional
medical practitioners; procurement of vaccines, PPEs, equipment, etc.; construction of
modular hospitals and molecular laboratories; and assistance to communities under
lockdown and/or quarantine. While funds for non-essential PPAs or least important
things were immediately put into use for the aforementioned purpose, examples are
cited by some participants: travel, training, seminars and sports events. These things
were defined to bear the least priority during the emergence of the pandemic.
Iloilo City has a clear direction towards its priority, the most essential and
necessary as described by most of the participants—life protection. Thus, other PPAs
were set aside and the budget was realigned and allocated to mitigate the virus. In
fact, according to one participant, the only budget that was left for the City Hall Office
was the minimal fund to keep all the office operations working, all the rest were allotted
for the COVID 19 response.
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One of the most effective fiscal measures that the city government adopted was
the austerity measures. The local chief executive even issued an executive order (EO)
mandating that all departments must observe the said austerity measures. The excess
funds for projects and infrastructures were separated and allotted for the response for
the pandemic then tight-budgeting and zero-budgeting was applied wherein
departments were made to utilize funds according to which it was programmed or
intended to be implemented. This shows that it is not only the leader who is committed
to the priorities of the city government, the departments of the LGU are als motivated
and dedicated to what they are doing. They have been prudent both in spending and in
actions. In fact, it was the initiative of one department to recommend adopting prudent
spending of their budget. While all decisions made were backed up with data and the
city government even came up with a vaccination strategy, a participant mentioned that
they have partnered with prominent institutions—UP, EpiMetrix and NCR. With these
being done, the LGU was able to avoid wastage of money and funds were used
according to its certain purpose, and emphasis to the part where no one could question
the decisions the city government has made because everything was driven by data.
CONCLUSIONS
The conclusions of the findings on the case study of the best fiscal practices of
Iloilo city during the pandemic were based on the findings from the semi-structured
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interviews and analysis of secondary data. Based on the salient findings of the study,
the following conclusions and inferences were derived:
According to the seven key informants, Iloilo City’s response to COVID-19
pandemic was deemed effective and successful overall. From the analysis of the results,
three themes were formed that described the best fiscal practices of Iloilo city: Good
Local Leadership, COVID-19 Pandemic and Its Effects, and Prioritization of Fiscal
Resources into COVID-19 Responses
As mentioned in the previous chapter, the findings highlighted the significant
factors that contributed the most to the success of the city in the aspect of fiscal
management during the pandemic. All seven participants emphasized the importance
and leadership of Iloilo city’s chief executive, Mayor Jerry Treñas, in his display of
excellence in leading the city’s COVID-19 response.
Based on the analysis, the participants enumerated the best fiscal practices of
Iloilo city which made the fiscal management effective and successful: the proper
budget allocation of funds to the COVID-19 response, the essence of unity among
departments, constituents, and the whole Iloilo City community, the data-driven basis
of the City’s LGUs in decision-making, and lastly, the cooperation of both the private
and public sector during the pandemic.
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RECOMMENDATIONS
The purpose of this qualitative case study is to identify the best fiscal practices of
Iloilo City during the COVID-19 pandemic. The findings of this research indicated that
Iloilo City has been practicing numerous measures to combat the COVID-19 pandemic.
In line with the above findings, the following recommendations are put forward:
1. Recommendations for Practice
This study highlights that it will be significant to the following: (1) the
Department of the Interior and Local Government (DILG); (2) the Local Government
Units (LGUs); (3) Iloilo City and its constituents; the Researchers; and the students. In
line with this, the Researchers has specified the recommendations for the following:
To the DILG
The Department of the Interior and Local Government, according to the
Official Gazette, is the executive department responsible for promoting peace
and order, ensuring public safety, and strengthening the capability of local
government units to effectively deliver basic services to the citizenry. This study
can introduce bases for policies to be passed by the DILG. They can use the
findings of this study regarding the successful response of Iloilo City and apply
these practices to other cities where it can be applicable. Moreover, the DILG,
together with other executive departments and bureaus, should provide
immediate assistance to LGUs in crisis such as these, especially when the
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problem is as big as a pandemic, that LGUs will find it difficult to combat alone.
To the LGUs
The Local Government Units, as the grassroot levels when it comes to the
delivery of basic services to the people, should always take into account the
importance of proactive measures. LGUs should be able to foresee the upcoming
problems and pass ordinances which would serve their local government and its
people. Moreover, LGUs should assess their capabilities in terms of (a) financial
resources; (b) human resources; and (c) Intellectual Property. These resources
are measures of success in pandemic response which were utilized by the Iloilo
City Government during the COVID-19 pandemic. Furthermore, transparency
builds trust. LGUs should practice transparency in all government spendings
because it fosters trust from their constituents and private or business sectors,
who would later become avenues for further a much greater success. This study
can be used as a basis for the creation of guidelines and policies with crisis
responses.
To Iloilo City and its Constituents
The study’s findings had listed the best practices of the Iloilo City when it
comes to managing their fiscal resources during the COVID-19 pandemic.
However, based on the Researchers’ interpretation of data, there are still areas
which need further improvement. The city, according to the results, still lacks
budget preparation allocated only for emergencies as huge as the pandemic.
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Although it is unforeseen, a crisis such as this should be given its portion so that
the city affected would not suffer from great loss in life and property due to
inadequate Quick Response Funds.
To the Students
This study might open new gaps and opportunities for students to conduct
related research regarding fiscal management, pandemic responses, and Iloilo
City’s best fiscal practices. The researchers recommend that students, as future
researchers, should look into the quantitative measures of the city and the actual
numbers of the changes in budget allocation, realignment of funds, and the
reprioritization that were done to respond to the threat of the virus.
2. Recommendations for Future Researches
The study findings have created opportunities for future researchers to conduct
further studies on the responses of other Highly Urbanized Cities regarding their
response to pandemic or other crisis which has direct implications on the fiscal
resources and its management.
The purpose of this study is only limited in identifying the best fiscal
management practices of Iloilo City during the COVID-19 pandemic. With regards to
this, another recommendation is being raised by the researchers for future studies.
Other researchers can possibly conduct studies on the responses of Iloilo City to other
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crises. Future researchers can compare their data with the findings of this study and
identify whether the responses and practices of the Iloilo City LGU are parallel or not.
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Appendix A. Instruments
1. What are the efforts and actions of the city government in responding to the
rising effects of the pandemic when it comes to managing the fiscal resources?
Does this affect the plans and priorities of the LGU when it comes to budgeting?
2. What do you think are the strengths of Iloilo City’s LGU? How did you apply it
during the pandemic? What are the things or factors that contributed the most in
the success of Iloilo city during the pandemic?
3. What are the challenges in the fiscal management that you encountered during
the pandemic? How did you handle these challenges?
4. How effective was the Mandanas Ruling in terms of allocating budget to the
LGUs during crises such as this pandemic?
5. Do you consider Iloilo City’s response to COVID 19 crises successful? Why?
- How did you contribute to this success?
7. What efforts did Iloilo City make that got them recognized and awarded for their
efficient budget allocation amidst the crisis of the COVID-19 Pandemic?
B. Letter to the Mayor
C. Letter to the Participants
D. Informed Consent Forms
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The Hustle Through a Hassle: A Case Study on the Best Fiscal Practices of

Iloilo City During the COVID-19 Pandemic

Prof. Shim Lester de Pio

Instructor of Research in Political Science

West Visayas State University-La Paz

of the requirements for the subject

Research in Political Science

Vhiera Marie L. Lometillo

Ma. Christine Joy G. Quistadio

Jea June P. Sorolla

Bachelor of Arts in Political Science 4A

exhaustively review the paper all throughout the process.(;)

to the direction of this paper.

throughout our academic pursuits.

to the success of this study.

Chapter one: Introduction

Background of the Study

Epistemological and Theoretical Perspective of the Study

The Principle of Accountability, Transparency, and Predictability

Paradigm of the Study

Statement of the Problem

Significance of the Study

Scope and Limitations

Chapter two: Review of Related Literature

Fiscal Management and Related Studies

Mandanas-Garcia Ruling, Decentralization, and Devolution

COVID-19 vis-a-vis Fiscal Management

Recognized Best Fiscal Management Practices in LGUs

Chapter three: Research Design and Methodology

Settings of the Study

Validity and Reliability of the Study

Chapter four: Results and Discussions

1. Good Local Leadership

1.1. Unity of Departments, Constituents, and Community

1.2. Private, Public, and Government Partnership

1.3. Fiscal Measures, Initiatives, and Practices Against COVID-19

2. COVID-19 Pandemic and its Effects

2.1. Shortage in Fiscal Resources

2.2. Workforce Limitations

3. Prioritization of Fiscal Resources into COVID-19 Responses

3.1. Tightening of the Belt: Adaptation of Austerity Measures

3.2 Prudence in Spending and in Actions

Integration of Theory in relation to the Themes

Principle of Transparency, Accountability, and Predictability

Chapter five: Summary, Conclusions, and Recommendations

Summary of the Study

1. Recommendations for Practice

2. Recommendations for Future Researches

constituents. The Iloilo City Government was recognized by Bureau of Local

main themes with corresponding sub-themes - Good Local Leadership, COVID-19

Keywords: COVID-19 Pandemic, Best Fiscal Practices, Iloilo City Government

INTRODUCTION TO THE STUDY

Study; (2) Epistemological and Theoretical Perspective of the Study; (3);Paradigm of

Terms; (7) Subjectivity Statement; and (8) Scope and Limitations.

Background of the Study

“Public spending is a story of some people spending other people’s money.”

management, which is interchangeably referred to as financial management, is the

governance are significantly influenced by the effectiveness of public financial

The development and application of fiscal policies as well as the promotion of

sensible fiscal policy. The unprecedented SARS-CoV-2 or Severe Acute Respiratory