DEVELOPING THE RESOURCE MOBILIZATION PLAN

SUPPORT TO THE LOCAL GOVERNMENT UNITS

FOR MORE EFFECTIVE AND ACCOUNTABLE PUBLIC FINANCIAL MANAGEMENT (LGU PFM 2 PROJECT)

This project is funded by the European Union and implemented by the Government of the Philippines

DEFINITION

RESOURCE MOBILIZATION PLAN

is the LGUs portion of the Financing Plan of the Local Development Investment Program (LDIP) which will be financed out of its own-sources revenues, its lawfully mandated regular share in national income and resources, and the use of alternative financing modalities such as credit financing, issuance of debt, BOT and its variations, and Joint Venture Schemes.

STEP ONE

PROPONENT:

BLGF

CLIENT:

LOCAL TREASURER

ACTION: Generation and Dissemination of eSRE Fiscal Capacity Model Medium-Term Forecasts for Own Source Revenues and the Internal Revenue Allotment.

PURPOSE: To provide the Local Treasurer with Medium-Term Forecasts that he/she can use or evaluate for his/her submission in the formulation of the LDIP.

TIMING: No later than April 30 of every year.

INITIAL MULTI-YEAR FORECASTS FOR THE RESOURCE MOBILIZATION PLAN

OUTPUT OF STEP ONE:

STEP TWO

PROPONENT:

LOCAL TREASURER

CLIENT:

LOCAL FINANCE COMMITTEE

ACTIVITY: Preparation of Medium-Term Forecasts of Own-Source Revenues and IRA in the Partial Resource Mobilization Plan.

PURPOSE: To come up with revenue forecasts or available resources that will be used to cover COE, Contractual Obligations and PPAs in LDIP

TIMING: No later than the 1^st week of May

PARTIAL RESOURCE MOBILIZATION PLAN

(OWN-SOURCE REVENUES AND EXTERNAL TRANSFERS ONLY)

OUTPUT OF STEP TWO:

Resource Mobilization Plan, 20__ to 20__

LGU Name ______________

PARTIAL RESOURCE MOBILIZATION PLAN

(OWN-SOURCE REVENUES AND EXTERNAL TRANSFERS ONLY)

OUTPUT OF STEP TWO:

PARTIAL RESOURCE MOBILIZATION PLAN

(OWN-SOURCE REVENUES AND EXTERNAL TRANSFERS ONLY)

OUTPUT OF STEP TWO:

STEP THREE

PROPONENT:

LOCAL TREASURER

CLIENT:

LOCAL FINANCE COMMITTEE

ACTIVITY: Preparation of Summary of Debt and Non-Debt Contractual Obligations

PURPOSE: To account for all contractual expenditures in the medium term that will be needed to be covered by available resources before they can be used to fund PPAs in the LDIP.

TIMING: 1^st week of May

SUMMARY OF MEDIUM-TERM DEBT AND OTHER NON-DEBT CONTRACTUAL OBLIGATIONS

OUTPUT OF STEP THREE:

Summary of Medium-Term Debt and Other Non-Debt Contractual Obligations, 20__ - 20__

LGU Name ______________

Prepared by:

​

_____________________________ Date:

Provincial/City/Municipal Treasurer

STEP FOUR

PROPONENT:

LOCAL BUDGET OFFICER

CLIENT:

LOCAL FINANCE COMMITTEE

ACTIVITY: Generation and Preparation of Forward Estimates of Current Operating Expenses

PURPOSE: To generate the expenditures for PS, MOOE and CO that the need to be covered before applying resources to PPAs in the LDIP

TIMING: 1^st week of May

FORWARD ESTIMATES TABLE (PROPOSED)

OUTPUT OF STEP FOUR:

STEP FIVE

PROPONENT:

LOCAL FINANCE COMMITTEE

CLIENT:

LOCAL DEVELOPMENT COUNCIL

ACTIVITY: Preparation of New Development Investment Financing Potential.

PURPOSE: To provide the Local Development Council with the initial estimated amount of resources that can be used to finance the LDIP.

TIMING: 2^nd week of May

NEW DEVELOPMENT INVESTMENT FINANCING POTENTIAL

OUTPUT OF STEP FIVE:

STEP SIX

PROPONENT:

LOCAL FINANCE COMMITTEE WITH LOCAL TREASURER AS LEAD

CLIENT:

LOCAL DEVELOPMENT COUNCIL

ACTIVITY: Preparation of Complete Resource Mobilization Plan based on Local Development Investment Program

PURPOSE: To link the LDIP to all potential sources of financing

TIMING: 3^rd week of May

ADDITIONAL MEDIUM-TERM FINANCING REQUIREMENTS, 20__ TO 20__

:

DRAFT COMPLETE RESOURCE MOBILIZATION PLAN

OUTPUT OF STEP SIX:

Resource Mobilization Plan, 20__ to 20__

LGU Name ______________

DRAFT COMPLETE RESOURCE MOBILIZATION PLAN

OUTPUT OF STEP SIX:

DRAFT COMPLETE RESOURCE MOBILIZATION PLAN

OUTPUT OF STEP SIX:

STEP SEVEN

PROPONENT:

LOCAL FINANCE COMMITTEE

CLIENT:

LOCAL DEVELOPMENT COUNCIL

ACTIVITY: Consultation with Local Development Council on Proposed Complete Resource Mobilization Plan

PURPOSE: To elicit comments and agreements among the members of the Local Development Council and Local Finance Committee on the final LDIP and RMP.

TIMING: 4^th week of May

PROCEEDINGS OR MINUTES OF LDC MEETING ON LDIP

OUTPUT OF STEP SEVEN:

Standard Proceedings or Documentation of Agreements Reached

STEP EIGHT

PROPONENT:

LOCAL FINANCE COMMITTEE WITH LOCAL TREASURER AS LEAD

CLIENT:

LOCAL DEVELOPMENT COUNCIL

ACTIVITY: Finalization of Complete Resource Mobilization Plan.

PURPOSE: Finalize the Resource Mobilization Plan based on final agreements with the Local Development Council.

TIMING: 1^st week of June

FINAL RESOURCE MOBILIZATION PLAN

OUTPUT FOR STEP EIGHT:

Resource Mobilization Plan, 20__ to 20__

LGU Name ______________

FINAL RESOURCE MOBILIZATION PLAN

OUTPUT FOR STEP EIGHT:

FINAL RESOURCE MOBILIZATION PLAN

OUTPUT FOR STEP EIGHT:

RESOURCE MOBILIZATION PLAN

Resource Mobilization Plan, 20__ to 20__

LGU Name ______________

RESOURCE MOBILIZATION PLAN

RESOURCE MOBILIZATION PLAN

COMPONENTS

• Column (1) lists the common sources of revenues and resources. These include own-source revenues such as income from real property tax, business taxes, fees and other charges and income from economic enterprises.

​

• Column (1) also includes statutory intergovernmental fiscal transfers or revenue transfers from the national government which are mandated by law and regularly or annual provided.

​

• These include the Internal Revenue Allotment or IRA and transfer from Special Shares such as the Tobacco Excise Tax and the share in income from natural resources and the share from the incremental E-VAT.

​

• Finally, resources also include other financing modalities such as credit financing, issuance of debt such as LGU bonds, and PPPs.

COMPONENTS

Column (2) lists the Objectives that must be attained to achieve the revenue or resource forecasts in Column (7).

​

For example, to achieve a set of annual forecasts over 6-years of real property tax collections in Column (7), the Objective could be a growth of 10% per year in the real property tax collection.

​

For other financial modalities, the medium-term forecasts for bank borrowings may be based on an Objective such as borrowing or securing loans of 2 million pesos per year or ensuring a borrowing capacity not exceeding a percentage of your regular income for the medium-term.

COMPONENTS

Column (3) lists the Strategies need to meet the Objectives.

​

These can include reviewing the local revenue code, updating market value after three years, and/or conducting tax information campaigns.

​

This could also include computerization of treasury operations such as business registration and tax collection. The strategies could even as simple as improving tax payer relations such as reducing the time for assessment and payment or even offering coffee to waiting tax payers.

COMPONENTS

Column (4) lists the Target Indicators associated with the Strategies.

​

For example, the review of the Local Revenue Code should result in the drafting and passage of an updated Local Revenue Code.

​

The computerization of the local treasury office should result in computers and a computerized system operational in the LGU after 1 year and a number of transactions eventually paperless.

COMPONENTS

Column (5) lists the Personnel in the Treasury Office who are directly responsible or who will take the lead in ensuring that the strategies are implemented and that the target indicators are achieved in a timely manner.

COMPONENTS

Column (6) lists the Resources need in terms of additional personnel, material and expenses required to implement the strategies and achieve the target indicators.

Column (7) are the revenue and resource forecasts that will be the basis for the inputs in Columns (2) to (6). How the forecasts will be generated will be discussed in later sections.

Bureau of Local Government Finance