Effort should be made to bring national agencies on board as supporters of LGU activities. An important problem is related to the shared resources that are supposed to go to LGUs. Inflation cuts into the shared revenues before they are delivered, shared revenue from natural resource exploitation is rarely forthcoming, and administrative decisions can cut the shared revenue to meet national objectives. Commitment should be made to deliver to LGUs the revenue that is mandated for them by the Code. Many LGUs are not able to meet devolved expenditure responsibilities and create new expenditures out of the shared revenue.
Provinces are particularly hard pressed to meet expenditure responsibilities.
Very few LGUs have exploited their own sources of revenue. Yet, all face hard budget constraints. Ultimately, allocative efficiency will be improved for those jurisdictions that improve upon revenue generation through local taxes such as the property and business taxes.