Finance Secretary Ralph G. Recto has welcomed the digitalization initiatives under the Philippine Public Financial Management (PFM) Reforms Roadmap 2024-2028 for a more efficient and effective government service delivery for Filipinos.

“I thank the ADB for helping the Philippine government in developing the PFM Roadmap. This will serve as the country’s strategic blueprint that will enable a fully digitalized, efficient, and transparent public financial management system, ensuring faster and more effective government services for the Filipino people,” he said.

On June 10, 2024, PFM Committee Principals Secretary Recto and Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman convened to discuss the progress of the Roadmap, as well as the updates on the Conduct of the Public Expenditure and Financial Accountability (PEFA+++) Assessment for the Philippines.

The meeting was held in collaboration with the Asian Development Bank (ADB) which provided technical assistance on the said initiatives.

Approved by the Principals during the meeting, the PFM Roadmap’s core reform focus areas include Planning and Budgeting Linkage; Cash Management; Public Asset Management; Accounting and Auditing; PFM Capacity Building; and Digital PFM.

To ensure that national and regional development priorities are aligned, the Roadmap focuses on enhancing information technology (IT) systems for planning and budgeting.

Implementing a modernized system for the release of payments is also emphasized to improve the accuracy of cash flow programming and cash releases.

On capacity development, the Roadmap suggests establishing a digital ecosystem for the management and rapid rollout of the Public Financial Management Competency Program (PFMCP) for the PFM workforce.

The creation of the digital PFM entails the development and implementation of the Budget Treasury and Management System (BTMS), which is an interoperable system that will be at the core of the government’s Integrated Financial Management Information System (IFMIS).

The digital PFM also requires sustaining the implementation of the eGovPay platform, which is a centralized payment gateway for government agencies.

In his opening remarks, ADB Philippine Country Director Pavit Ramachandran commended the Committee for the progress made for the Roadmap and the strong commitment demonstrated across government agencies to deliver a better PFM.

Director Ramachandran likewise expressed his eagerness for the focus on digitalization which cuts across the PFM reforms, and proposed looking into the digitalization in both tax mobilization and expenditure management efforts.

Meanwhile, the Principals also approved the inclusion of the Climate, Gender, and Disaster Assessment in the 2024 PEFA+++ evaluation, in addition to the PEFA Basic Framework.

The Conduct of PEFA+++ Assessment for the Philippines aims to provide the government with a comprehensive evaluation of the performance of PFM institutions, systems, and processes.

The results of the assessment are targeted to be published by the second quarter of 2025 and will serve as the basis for the mid-term review and updating of the PFM Reforms Roadmap 2024-2028 and the preparation of the PFM Reform Action Plan.

Executive Order No. 29, issued by President Ferdinand R. Marcos, Jr. on June 1, 2023, reinstated the functions of the PFM Committee in leading the Philippine PFM reform agenda, developing the PFM Reforms Roadmap, as well as the monitoring and reporting thereof to the Office of the President.

The PFM Committee is targeting the turnover of the Philippine PFM Reforms Roadmap 2024-2028 to the President this June.

PFM Committee Members and representatives also present during the meeting were DOF Chief-of-Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco, OIC Undersecretary Niño Raymond B. Alvina, Assistant Secretary Eufrocinio M. Bernabe, Jr., OIC Assistant Secretary Angelica I. Sarmiento; Director Lolita R. Verdadero; DBM Undersecretary Maria Francesca M. Del Rosario; Commission on Audit (COA) Assistant Commissioners Roy Ursal and Adela Dondonilla; and Bureau of the Treasury (BTr) Deputy Treasurer of the Philippines Eduardo Anthony G. Mariño III.

Also present as resource persons were National Economic and Development Authority (NEDA) Undersecretary Joseph J. Capuno, ADB Senior Economist Aekapol Chongvilaivan; ADB Financial Management Specialist Myra Evelyn P. Ravelo; and ADB Consultants Chaithanya Chava and Maria Theresa Quirino.