THE government’s new roadmap for public financial management is expected to improve how national and local governments utilize their funds, in the process aiding the Philippines in reaching an ‘A’ credit rating, the Department of Budget and Management (DBM) said.
“This is one of our budget reforms (towards achieving) governance and bureaucratic efficiency,” Budget Secretary Amenah F. Pangandaman told reporters on the sidelines of the roadmap launch on Tuesday. She called the plan’s objectives “crucial components on the road to ‘A.’”
The government aims to achieve an ‘A’-level rating before the end of the Marcos administration in 2028.
In a Senate hearing last month, Bangko Sentral ng Pilipinas Governor Eli M. Remolona, Jr. cited good governance as one of the things credit rating agencies look for when assessing a country’s creditworthiness. The other two are macroeconomic stability and fiscal sustainability.
A higher credit rating would help lower borrowing costs and attract foreign investment.
The Public Financial Management (PFM) Roadmap 2024-2028 is expected to encourage good governance, serving as a blueprint for agencies in spending their budgets.
“We are committed to synchronize planning and budgeting at our local, regional, and national levels as well as streamlining our institutional frameworks to reduce the time spent on bureaucratic processes,” President Ferdinand R. Marcos, Jr. said in a speech.
“With this roadmap, we give a clear mandate of ensuring that the money entrusted to us by the people serves a purpose that truly matters, that will make a difference,” he added.
The roadmap addresses 11 strategic focus areas: planning and budgeting linkages; cash management; public asset management; accounting and auditing; PFM capacity development; and the digital PFM.
Other key areas covered in the roadmap include PFM policy and legal framework; public procurement; disaster risk reduction and management; PFM for local government units; and monitoring and evaluation for public expenditure.
Agencies have begun implementing the 11 PFM principles, with technical working groups already formed, according to Ms. Pangandaman.
Government agencies responsible for cash management policies and processes will revisit the Monthly Disbursement Program schedule and modernize payment systems for public expenditures, Mr. Marcos said. — Beatriz Marie D. Cruz
