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An Analysis of the National Government Expenditures for Personal Services


Over the years (2014- 2021), the national government (NG) spends an average of 28.8% of its annual budget to personal services (PS). With limited fiscal space to finance the flagship programs/projects of NG, it is important to examine how the government spends for personal services and how else it can free up resources and strategically reallocate public funds. An analysis of the PS spending can also provide a baseline as NG embarks on rightsizing the bureaucracy and mainstreams e-governance with the digitalization of government processes. This budget brief analyzes expenditures for PS at various levels (e.g. sectoral), and discusses key issues such as dealing with unfilled positions and reforming the MUP pension system.


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