The document discusses reforms and innovations in government budgeting in the Philippines. It outlines the Public Financial Management (PFM) Reform Program which aims to improve transparency, accountability, and financial management processes through the Government Integrated Financial Management Information System (GIFMIS) and other key projects. The objectives of PFM reforms by 2016 are also summarized, which include real-time budget monitoring, consolidated financial reporting, and improved cash management.
5. QUOTATION
“Budgeting has only one rule: Do not go over
budget.”
― Leslie Tayne, Life & Debt: A Fresh
Approach to Achieving Financial Wellness
6. OBJECTIVE:
Find the meaning of the different
acronym in budgeting.
Define budget reform.
Determine the different reforms and
innovations in government budgeting.
GILDA
GALANGUE
7. ACRONYM IN BUDGETING
PFM Public Financial Management
PEPA
BTr
GIFMIS
M&E
Bureau of the Treasury
Government Integrated Financial Management Information System
Monitoring and Evaluation
Philippine Government Electronic Procurement System
Public Expenditure and Financial Accountability
PhilGEPS
8. BUDGET REFORM - making the
national budget more responsive to
local needs
9. Public Financial Management (PFM)
The reform agenda is laid out in
the Philippine Public Financial
Management Reform
Roadmap: Towards Improved
Accountability and Transparency
2011-2015.
PFM is an essential part of the
government’s plans to improve
transparency, accountability, public
institutions and participatory
governance in pursuit of more
inclusive growth and poverty
alleviation.
GILDA
GALANGUE
REFERENCE: http://pfmp.org.ph/index.php/pfm-101
10. What is PFM all about?
PFM deals with all aspects of
resource mobilization and
expenditure management in
government. It is about the way
the government raises its
income, in the form of
taxes, customs duties and other
revenues, and manages its
expenditures to deliver essential
services to its citizens such
as education, healthcare and
other social programs, roads
and infrastructure, rule of law
and security, and other areas
that improve the lives of the
citizens.
GILDA
GALANGUE
REFERENCE: http://pfmp.org.ph/index.php/pfm-101
11. Why is PFM so important to the Philippines?
A sound PFM system helps
reduce the opportunity for
misuse of funds. It also
aids decision-makers in
the government to perform
their functions and decide
where to allocate funds that
will do the greatest good.
More importantly, it helps
inform the citizen where
and how the public funds
are actually being spent.
GILDA
GALANGUE
REFERENCE: http://pfmp.org.ph/index.php/pfm-101
12. How do we measure PFM performance in the Philippines?
One of the most common tools
for measuring PFM
performance is the Public
Expenditure and Financial
Accountability (PEFA)
assessment. The PFM
Performance Measurement
Framework (or PEFA
Framework) was developed as
a contribution to the collective
efforts of many international
stakeholders to assess and
develop essential PFM
systems.
GILDA
GALANGUE
REFERENCE: http://pfmp.org.ph/index.php/pfm-101
13. Public Financial Management (PFM) Reform
Program
Philippine PFM
Reform Roadmap:
Towards Improved
Accountability and
Transparency
(2011-2016)
14. Public Financial Management (PFM) Reform
Program
Philippine PFM
Reform Roadmap:
Towards Improved
Accountability and
Transparency
(2011-2016)
A comprehensive
map that seeks to
clarify, simplify,
improve and
harmonize the
government’s
financial
management
processes and
information systems.
GILDA
GALANGUE
http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
15. Public Financial Management (PFM) Reform
Program
Authorizes the PFM
Committee composed of
the Commission on Audit
(COA), Department of
Budget and Management
(DBM),
Department of Finance
(DOF) and Bureau of the
Treasury (BTr)
To oversee and
coordinate the
integration and
automation of
government
financial systems,
and the
implementation of
the PFM roadmap
http://pfm.gov.ph/ckfinder/userfiles/fi
les/PFM%20Program%20Brief.pdf
GILDA
GALANGUE
16. OBJECTIVES
By 2016, it is
envisioned that the
core Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
1. Real-time on-line
monitoring and
control of
budgetary accounts
and their direct links
to cash
disbursements for
more effective
financial control
and accountability;
GILDA
GALANGUE
http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
17. OBJECTIVES
By 2016, it is
envisioned that the
core Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
2. Consolidated financial
management
reporting requirements
using harmonized
budgetary,
treasury and accounting
classification with
standardized definitions
for fiscal terminologies;
GILDA
GALANGUE
http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
18. OBJECTIVES
By 2016, it is
envisioned that the
core Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
3. A single treasury
account that provides BTr a
more effective way of cash
management, a more
economical system for cash
disbursements, and
enables it to reconcile bank
balances and remove
revenue and expenditure
floats;
GILDA
GALANGUE http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
19. OBJECTIVES
By 2016, it is envisioned
that the core
Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
4. A predictable and
streamlined allotment
and
cash release program
throughout the year to
support
the operations of
implementing agencies
based on
reliable cash forecasting
and programming by
DBM
and the BTr;
GILDA
GALANGUE
http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
20. OBJECTIVES
By 2016, it is
envisioned that the
core Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
5. Regular in-year reports on
the status of
budget execution, and timely
year-end audit reports
of agency financial and physical
operations which
will be used in the budget
preparation process, the
congressional debate on agency
budgets and
performance, and the public’s
participation in the
budget process; and http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
GILDA
GALANGUE
21. OBJECTIVES
By 2016, it is envisioned
that the core
Government
Integrated Financial
Management
Information
System (GIFMIS)) will
be functioning to
provide
decision makers with
the following benefits:
6. Systematic recording
and reporting of all
liabilities of government
entities including
guaranteed and contingent
liabilities to enable
national government to
manage its financial
exposure.
http://pfm.gov.ph/ckfinder/userfiles/fil
es/PFM%20Program%20Brief.pdf
GILDA
GALANGUE
28. As in the last five years, the Aquino Administration for 2016, will focus
on the following
priority objectives:
1) Pursuit of good governance
and anti-corruption measures
(building constituencies for
reform, strengthening
planning, (M&E) and public
financial management
systems, streamlining
frontline and bureaucratic
processes , and implementing
the LGU and ARMM reform
programs) to create a better
environment to attract
investments and quality jobs.
REFERENCE: NATIONAL BUDGET MEMORANDUM
#124 , MARCH 2015
29. As in the last five years, the Aquino Administration for 2016, will focus
on the following
priority objectives:
2) Making growth
inclusive (expansion of
the 4Ps, universal health
care, K to 12 Basic
Education Program, and
housing for informal
settlers) in order to raise
the quality of the
Filipino workforce;
REFERENCE: NATIONAL BUDGET MEMORANDUM
#124 , MARCH 2015
30. As in the last five years, the Aquino Administration for 2016, will focus
on the following
priority objectives:
3) Creating more and
better jobs and
livelihood by sustaining
the growth momentum
(strategic infrastructure
development,
strengthening tourism
and agricultural
development, and
reviving industrial
development);
GILDA
GALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM
#124 , MARCH 2015
31. As in the last five years, the Aquino Administration for 2016, will focus
on the following
priority objectives:
4) Managing disaster
risks (implementing
climate change
adaptation measures and
risk reduction and
management programs)
in order to prevent the
loss of lives , properties
and livelihood;
GILDA
GALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM
#124 , MARCH 2015
32. As in the last five years, the Aquino Administration for 2016, will focus
on the following
priority objectives:
5) Establishing an
enabling environment of
just and lasting peace
and the rule of law to
promote and implement
peace agreements and
modernize the military
and police.
GILDA
GALANGUE
REFERENCE: NATIONAL BUDGET MEMORANDUM
#124 , MARCH 2015
33. Reforms for Effective Public Expenditure
Presentation of
Secretary Abad
For the
Philippine
Development
Forum - Plenary
Presentation
February 4, 2012
1.Effective public
expenditure by
ensuring spending
on the right
priorities, spending
efficiently,
effectively, and with
maximum impact.
GILDA
GALANGUE
34. Presentation of
Secretary Abad
For the
Philippine
Development
Forum - Plenary
Presentation
February 4,
2012
2.On budgetary
prioritization, the
core framework:
the Aquino Social
Contract with the
Filipino People.
Reforms for Effective Public Expenditure
GILDA
GALANGUE
35. Reforms for Effective Public Expenditure
Presentation of
Secretary Abad
For the Philippine
Development
Forum - Plenary
Presentation
February 4, 2012
3. Introduced the
Zero-Base Budgeting
approach to eliminate
inefficient,
ineffective, and
irrelevant programs
and projects, and to
re-channel funds to
priority social
programs.
36. Presentation of
Secretary Abad
For the
Philippine
Development
Forum - Plenary
Presentation
February 4,
2012
4. Introduced
reforms to ensure
the fast and
efficient
implementation of
the budget and
delivery of priority
programs and
projects.
Reforms for Effective Public Expenditure
GILDA
GALANGUE
37. 4. Introduced reforms
A. Policy for the
disaggregation of
lump-sum funds into
specific programs
and projects. Lump-
sum funds have not
only begotten
anomalies but have
also slowed down
budget execution.
B. Introduced
innovations to
speed
up the
procurement
process.
GILDA
GALANGUE
38. C. Deployed Account
Management Teams
in key departments
to address
bottlenecks in the
implementation of
programs and
projects.
D. All appropriations
will have a life span
of one year. This
improves the
predictability of
budget execution
and government
operations, as carry-
over budgets will
now become a thing
of the past.
4. Introduced reforms
GILDA
GALANGUE
39. Presentation of
Secretary Abad
For the
Philippine
Development
Forum - Plenary
Presentation
February 4,
2012
5. Ensure that each
peso spent will
lead to measurable
results via stronger
performance
management and
performance
budgeting.
Reforms for Effective Public Expenditure
GILDA
GALANGUE
40. Presentation of
Secretary Abad
For the
Philippine
Development
Forum - Plenary
Presentation
February 4,
2012
6.On the financial
side, implement
the roadmap for
Public Financial
Management
Reforms together
with DoF-BTr and
CoA.
Reforms for Effective Public Expenditure
GILDA
GALANGUE
41. Technological innovations
Technological innovations are
also being pursued not only to
introduce more efficiency and
speed in budget execution and to
ensure quality delivery of
programs and projects, but also
to improve transparency. For
instance, in procurement, the
work of expanding the
Philippine Government
Electronic Procurement System
(PhilGEPS) launched an
electronic payment facility for
the Virtual Store in PhilGEPS.
GILDA
GALANGUE
REFERENCE :Pursuing the Aquino
Administration’s Agenda for
Empowerment Through Public
Expenditure Management
Reform
Florencio B. Abad
42. Technological innovations
PhilGEPS is also about to pilot an
online bidding system. Moreover,
the DBM, together with the
Commission on Audit (CoA) and the
Department of Finance-Bureau of
Treasury (DoF-BTr), is in the midst
of developing a Government
Integrated Financial Management
Information System (GIFMIS). This
System, envisioned for completion
by 2016, will automate and
streamline the processing and flow
of funds and information among the
Public Financial Management
oversight agencies and, eventually,
among the implementing agencies.
GILDA
GALANGUE
REFERENCE :Pursuing the Aquino
Administration’s Agenda for
Empowerment Through Public
Expenditure Management Reform
Florencio B. Abad
43. 2013-2016: Pursuing Inclusive and Sustained Growth
and Irreversibility of Reform
Economy’s strength continues to come largely from
the services sector. Indeed, this sector, particularly
BPO, needs to be sustained. However, it is those
from the educated middle class who are able to
leverage on opportunities in this sector.
GILDA
GALANGUE
44. First, fiscal discipline: we are
on track to meeting our fiscal
consolidation goals,
particularly the target to bring
the deficit-to-GDP ratio down
to 2 percent by this year.
In ensuring allocative
efficiency, the Budget
priorities from this year to
2016 should reflect this
intention to further strengthen
the domestic economy.
Lastly, to support operational
efficiency, the Budget’s face
will change starting 2014,
literally and figuratively. Two
key developments move us to
this direction.
2013-2016: Pursuing Inclusive and Sustained Growth
and Irreversibility of Reform
GILDA
GALANGUE
REFERENCE :Pursuing the Aquino
Administration’s Agenda for
Empowerment Through Public
Expenditure Management
Reform
Florencio B. Abad
45. PROBLEMS
The Government’s economic managers believe that a
Medium-Term Expenditure Framework (MTEF), is the key
to achieving fiscal discipline, more strategic prioritization of
resources, and better operating efficiencies over the
medium term.
This explains problems and weaknesses that the
government hopes to address by installing the MTEF, also
called a multi-year budgeting system. It also enumerates
elements of the MTEF, explains anticipated benefits, and
outlines how the Government has been setting them in place
during the country’s ongoing budgeting process. Lastly, this
report mentions achievements that have already been
registered since the MTEF’s initial installation.
GILDA
GALANGUE
46. PROBLEMS
The problem with the Philippines’
current one-year budgeting system is
that it provides no mechanism for the
Government to control its budget and
expenditure beyond a two-year time
horizon. It provides no systematic way of
projecting or managing the expenditure
requirements of ongoing and new
programs of government agencies
GILDA
GALANGUE
47. PROBLEMS
One problem in many countries is that
responsibility has been devolved from
the central level to the district level, the
province level, or further down. A
number of countries are facing the
difficulties of human resource
development at the grassroots level.
These countries have worked to improve
governance through legal provisions.
GILDA
GALANGUE
48. ISSUES
Declining Global Peace Index (GPO Rank
from 130th in 2013 to 134th in 2014. Despite
the collective efforts to maintain a safe and
secure environment, the Philippines has
remained among the least peaceful countries
in the 2014 Global Peace Index Report of the
Institute for Economics and Peace. The slide
in rank was attributed to the persistence of
internal conflict, crime incidents, terrorism
and territorial dispute with China.
GILDA
LANGUE
49. ISSUES
Delay in the completion of the peace process
amidst recent developments. After 17 years of
negotiation, the Comprehensive Agreement of
Bangsamoro between the government and
Moro Islamic Liberation Front was signed in
March 2014. In anticipation of the enactment
of the Basic Bangsamoro Law (BBL), initial
funding support has been provided for socio-
economic programs and Annex on
Normalization of the Framework Agreement
on the Bangsamoro.
GILDA
LANGUE
50. ISSUES
Limited capacity of LGUs
and Regional Line
Agencies (RLAs) to
implement programs in
conflict-stricken and
vulnerable areas.GILDA
GLANGUE
51. Reaction
GILDA
GALANGUE
In line with the medium-term goal of digitizing the
bidding process, develop additional features of PhilGEPS
(The Philippine Government Electronic Procurement
System) within 360 days, particularly: a facility to enable
the online submission of bid documents; a module for
CSOs to monitor tenders online; an electronic fee
payment system; an expanded supplier registry; and a
module for agency posting of their annual procurement
plans.
52. Reaction
GILDA
GALANGUE
To better manage government manpower requirements
and improve accountability in the disbursement of funds
for personal services, the Government will complete its
Government Manpower Information System (GMIS) and
develop a central payroll system within 360 days, in
accordance with Executive Order No. 31 series of 2011.
Stakeholders said they knew that an effort to rid the
Government of ghost employees ,private software will be
able to handle the national payroll system .