Philippine Public Financial Management

📣 Call for Comments

Do visit https://bit.ly/3BYKDl0

Executive Order No. 170, entitled “Adoption of Digital Payments for Government Disbursements and Collections”, was signed by President Rodrigo Roa Duterte on 12 May 2022.

The Executive Order directs all government departments, agencies, and instrumentalities of the government, including state universities and colleges, and government-owned or controlled corporations, to adopt digital payments for their respective collections and disbursements.

For greater transparency and inclusivity, the public is enjoined to comment on and provide inputs to the draft Implementing Rules and Regulations (IRR), prepared by the Technical Working Group (TWG) on the Adoption of Digital Payments, on or before 24 𝘼𝙪𝙜𝙪𝙨𝙩 2022 by visiting https://bit.ly/3BYKDl0

Comments and inputs can also be sent through the following e-mail addresses:
[email protected]
[email protected]

Links to downloadable files:
EO No. 170: https://bit.ly/3QgdB46
Draft IRR: https://bit.ly/3dg1FAS

DBM Assures Timely Submission of the FY 2022 NEP to Congress

Following the submission of the proposed FY 2022 National Budget to the Office of the President last July 26, 2021, the Department of Budget and Management (DBM) commits to finalize the FY 2022 National Expenditure Program (NEP) and other related budget documents for printing, in time for its submission to both houses of Congress on or before the 30-day Constitutional deadline.

The proposed budget for next year amounts to P5.024 Trillion, which is equivalent to 22.8 percent of the Gross Domestic Product and is higher by 11.5 percent than this year’s national budget.

Carrying the theme, “Sustaining the Legacy of Real Change for Future Generations”, the proposed FY 2022 national budget underwent several budget consultations with agencies and was carefully crafted to sustain the government’s COVID-19 response efforts including the procurement of COVID-19 testing kits, continuous hiring of human resources for health, establishment of the Virology Institute of the Philippines, and the continuous implementation of health programs in accordance with the Universal Health Care Act. In addition, funds for the procurement of the COVID-19 booster shots will also be allocated under the Unprogrammed Appropriations.

Other priority programs to be supported under this proposed fiscal package include budgetary support for the provision of Universal Access to Quality Tertiary Education, continuous conduct of the National ID System, and provision of assistance to disadvantaged Local Government Units. The government will also boost economic recovery and provide a modernized public transport system by continuously investing in the Build, Build, Build Program which is expected to create jobs and catalyze business activities all over the country.

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To help the country recover from the dire impacts of the COVID-19 pandemic, the 2021 National Budget supports government efforts towards strengthening the health system, upgrading to a digital government, and expanding livelihood opportunities and social protection programs.

Check out our reader-friendly publications to learn more about the 2021 National Budget:

2021 People's Enacted Budget:https://dbm.gov.ph/images/pdffiles/2021-Peoples-Proposed-Budget.pdf
2021 Budget-at-a-Glance Briefer:https://dbm.gov.ph/images/pdffiles/2021-Budget-at-a-Glance-Enacted-English.pdf

PRRD signs the P4.506 Trillion National Budget for FY 2021

President Rodrigo Roa Duterte today signed into law the PhP4.506 trillion Fiscal Year (FY) 2021 General Appropriations Act (GAA), which is the third full cash budget of the Duterte Administration and serves as the government’s financial blueprint to recovery in response to the COVID-19 pandemic. The PhP4.506 trillion budget, which is equivalent to 21.8 percent of gross domestic product, is the country’s largest to date, larger by 10 percent than the FY 2020 budget.

Carrying the theme “Reset, Rebound, and Recover: Investing for Resiliency and Sustainability”, the FY 2021 national budget will help the nation reset by addressing the pandemic, rebound by boosting infrastructure development and by generating job opportunities, and rebuild by assisting communities adapt to the post-pandemic life.

By Sector

The social services sector accounts for the largest bulk of the FY 2021 budget, with PhP1,668.0 billion, equivalent to 37.0 percent of the national budget. The economic services sector, which includes the Administration’s flagship Build, Build, Build program, will receive the second highest allocation with PhP1,323.1 billion or 29.4 percent of the budget. Meanwhile, the General Public Services sector will be allocated with PhP747.8 billion (16.6 percent), Debt Burden with PhP560.2 billion (12.4 percent), and Defense with PhP206.8 billion (4.6 percent).

Top 10 Departments

Consistent with the provisions of the Constitution, the education sector shall continue to receive the largest portion of the national budget to the tune of PhP751.7 billion, or 16.7 percent of the FY 2021 budget. The Department of Public Works and Highways (DPWH) and the Department of Interior and Local Government (DILG) will follow suit with PhP695.7 billion (15.4 percent) and PhP249.3 billion (5.5 percent), respectively. The Department of Health (DOH), being the primary government arm in responding to the COVID-19 pandemic, will receive PhP210.2 billion which is 19.6 percent higher than its FY 2020 budget. This is followed by the Department of National Defense (DND) with PhP205.8 billion, Department of Social Welfare and Development (DSWD) with PhP176.9 billion, Department of Transportation (DOTr) with PhP87.9 billion, Department of Agriculture (DA) with PhP71.0 billion, The Judiciary with PhP45.3 billion, and the Department of Labor and Employment (DOLE) with PhP37.1 billion.

Banner Programs and Projects for FY 2021

Reset: Addressing the COVID-19 Pandemic
The FY 2021 GAA will prioritize health-related COVID-19 response programs to address the continuing threat of the pandemic.

To achieve the mission in providing health care for all, budgetary support is provided for the National Health Insurance Program (PhP71.4 billion) to subsidize the health insurance premiums of thirteen (13) million indigent families and seven (7) million senior citizens. Meanwhile, the Human Resources for Health Program is allotted PhP16.6 billion for the deployment of doctors, nurses and other health workers to disadvantaged communities and national hospitals.

To ensure the safety of our health workers, PhP4.7 billion is allocated for the procurement of more than two (2) million sets of personal protective equipment for hospitals, laboratories and regional swab centers. An additional budget of PhP1.0 billion is appropriated for the procurement of 861,720 GeneExpert cartridges to supplement the fast and accurate testing of COVID-19 cases. Around PhP7.8 billion is allocated for the repair, upgrading, completion, and new construction of Barangay Health Stations, Rural Health Units, and Polyclinics; upgrading of hospital equipment, laboratories and quarantine facilities in different regions; provision of medical transport in different regions; and monitoring of Health Facilities Enhancement Program (HFEP) projects.

Some PhP283 million is also allotted for the establishment of the Virology Science and Technology Institute of the Philippines which aims to undertake studies on novel, emerging and re-emerging viruses. To improve health data systems, PhP51.56 million is allotted for disease surveillance and monitoring of COVID-19 and other similar respiratory infections.

More importantly, some PhP2.5 billion is allocated under the DOH budget and a further PhP70.0 billion is provided under the FY 2021 Unprogrammed Appropriations for COVID-19 vaccine procurement and logistics. Unprogrammed Appropriations may be tapped when any of the following exists: (1) excess revenue collections; (2) new revenue sources; and (3) approved loans for foreign-assisted projects.

Rebound: Reviving Infrastructure Development

Meanwhile, the FY 2021 will also stimulate economic rebound through the revival of infrastructure development, mainly through the Build, Build, Build Program which is expected to generate 1.1 million direct and indirect jobs and catalyze business activities all over the country.

For infrastructure projects under the DPWH, some PhP317.7 billion will be implemented for its core programs, particularly, the Asset Preservation Program (PhP66.0 billion), Network Development Program (PhP124.5 billion), Bridge Program (Ph25.4 billion) and Flood Management Program (PhP101.8 billion). Funding support for the DOTr’s Rail Transport Program (PhP47.7 billion), Land Public Transportation Program (PhP12.64 billion), and Maritime Infrastructure Program (PhP562.41 million) is also provided next year.

Recover: Adapting to the New Normal

The FY 2021 budget shall also prioritize the transition and adaptation of various sectors to the new normal. For the education sector, the priorities of the Administration have been reshaped to adopt flexible and blended learning options. Hence, PhP17.02 billion billion is allotted for the implementation of the Basic Education Learning Continuity Program (BE-LCP) to include the development, reproduction and delivery of learning resources while PhP5.9 billion is allotted for the expansion of DepEd’s Computerization Program which aims to procure multimedia packages for public schools nationwide.

The national budget next year will also prioritize government programs that help improve the productivity of the agriculture and fishery sector such as the irrigation services activities of the National Irrigation Authority (PhP31.7 billion), the National Rice Program (PhP15.5 billion), the National Fisheries Program (PhP3.9 billion) and the Rice Competitive Enhancement Program (PhP10.0 billion).

To help local businesses and MSMEs recover, PhP20.4 billion is allotted for the DOLE’s Livelihood and Emergency Employment Program which will cater to displaced formal and informal workers, while some PhP2.4 billion is provided for the DTI’s MSME Development Program. Moreover, the Training for Work Scholarship Program (PhP4.1 billion) and the Tulong Trabaho Scholarship Program (PhP1.0 billion) will also be prioritized to promote digital upskilling and retraining of workers.

The government will continue to aid vulnerable groups by funding programs such as the Pantawid Pamilyang Pilipino Program (PhP106.8 billion), Social Pension for Indigent Senior Citizens (PhP23.5 billion), Sustainable Livelihood Program (PhP4.3 billion) and the Supplementary Feeding Program (PhP3.8 billion), among many others.

PhP4.3 billion shall also be provided for the implementation of and registration to the Philippine Identification System (PhilSys). This will be complemented at the local level through the Community Based Monitoring System, with a budget allocation of PhP85.0 million, which will assist the Local Government Units in improving their local residence registries.

The FY 2021 budget serves as the heftiest stimulus package for the economy, thus enabling public spending to stimulate economic recovery. It is based on the sound fiscal policy of spending within means, on the right priorities, and with measurable results under a regime of a transparent, accountable, and participatory governance.

The passage of the FY 2021 General Appropriations Bill in Congress was led by Eric Go Yap House Committee on Appropriations Chairperson Representative and Senate Committee on Finance Chairperson Senator Juan Edgardo “Sonny” M. Angara.

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Today, at 10:00 AM, how did the Philippines perform in the 2019 Open Budget Survey?

There has been growing evidence that the best way to improve the management of public finances is through budget systems that are transparent, open to public engagement and scrutiny, and that have robust oversight institutions and mechanisms. Launched in 2006 by the International Budget Partnership, the Open Budget Survey (OBS) is the world’s only independent, comparative, and fact-based research instrument to measure these essential aspects of governance and accountability: transparency, oversight and public participation.

The OBS is part of the International Budget Partnership’s Open Budget Initiative, a global research and advocacy program to promote public access to budget information and the adoption of inclusive and accountable budget systems. All people in a country should have access to relevant information on how public resources are raised and spent, opportunities to contribute to policy decisions that affect their livelihoods and futures, and assurance of robust budget oversight by independent well-informed legislatures and audit institutions.
A country's budget transparency score, reflected on the Open Budget Index, assesses the public's access to information on how the central government raises and spends public resources. A transparency score of 61 (out of 100) or higher indicates a country is likely publishing sufficient material to support informed public debate on the budget.

In this regard, the La Salle Institute of Governance, in partnership with the International Budget Partnership and Stratbase ADR Institute, organized a presentation of the “The 2019 Open Budget Survey: How did the Philippines Perform?”, which will be held on 9 October 2020, Friday, from 10:00 AM – 12:00 PM.
To join the discussion, kindly register here:
https://zoom.us/webinar/register/WN_ycWGyzu7TcWn0SS5YLqb1g

Check out this free webinar organized by GPPB-TSO for procuring entities set on September 30. Do register👍

𝐅𝐑𝐄𝐄 𝐖𝐄𝐁𝐈𝐍𝐀𝐑 𝐅𝐎𝐑 𝐏𝐑𝐎𝐂𝐔𝐑𝐈𝐍𝐆 𝐄𝐍𝐓𝐈𝐓𝐈𝐄𝐒!!

On 30 September 2020, from 1:30 – 4:00 PM, the GPPB-TSO will conduct a Webinar on 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐏𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐁𝐚𝐲𝐚𝐧𝐢𝐡𝐚𝐧 𝐭𝐨 𝐑𝐞𝐜𝐨𝐯𝐞𝐫 𝐚𝐬 𝐎𝐧𝐞 𝐀𝐜𝐭 via Zoom, and the same will be streamed live here in our Facebook account.

The Webinar will highlight the following latest issuances of GPPB:

1.) Rules on the Conduct of Procurement Activities under RA No. 11494 or the Bayanihan to Recover as One Act (Bayanihan 2); and
2.) Rules in the conduct of Procurement for Goods with Application of Domestic Preference Covered Under RA No. 11494 or the Bayanihan to Recover as One Act (Bayanihan 2)

Head on to our GPPB-TSO Online Training Management System to register!

Only participants who have successfully secured a slot to the webinar will receive the confirmation e-mail from GPPB-TSO.

See you on the webinar!

“The Department of Budget and Management commits to establish an effective, efficient, and participatory monitoring, validation, and reporting mechanism for government infrastructure programs and projects. The Digital Information for Monitoring and Evaluation (DIME) project is a game-changing initiative that utilizes existing technologies for monitoring and evaluation of government projects. Another ICT-mediated reform is the Budget and Treasury Management System (BTMS), a centralized database which records real-time information on financial transactions across government agencies.” -- Assistant Secretary Rolando U. Toledo of the Department of Budget and Management during the 18th Development Policy Research Month Virtual Kickoff Forum held on September 1, 2020

In case you missed the live feed of this event, you can still watch it here: https://www.facebook.com/PIDS.PH/videos/633932737534364