This presentation was made by Clarito MAGSINO, Philippines, at the 13th Annual Meeting of OECD-Asian Senior Budget Officials held in Bangkok, Thailand, on 14-15 December 2017

1. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
Budget Reform Program
By: Assistant Secretary Clarito Alejandro D. Magsino
Department of Budget and Management
Manila, Philippines

2. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
1. The Budget Reform
OBJECTIVE
Fully execute the Budget to
deliver goods and services
which promotes Growth
and reduces Poverty
Target: Economic Growth of
7 to 8% per annum
Target: Reduction of Poverty
from 21.6% to 14%
SPENDING POLICY OF THE DUTERTE ADMINISTRATION
• Double Infrastructure Spending
• Increase Social Sector Spending
Infrastructure Spending Social Sector Spending
5.3% of GDP in 2017 8.5% of GDP in 2017
7.4% of GDP in 2022 9.2% of GDP in 2022
P8.4 Trillion in 6 years P10.33 Trillion in 6 years
UNDERSPENDING IN THE LAST THREE YEARS
2014 - P302.7B or 13.3 % of budget
2015 - P328.3B or 12.8 % of budget
2016 - P96.3B or 3.6 % of budget

3. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
2. The Budget Reform Program Coverage
TSA- Treasury Single Account
BTMS- Budget and Treasury Management System

4. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
3. Transition to Annual Cash based Appropriation
Multiyear obligations
Continuing
appropriations
Multiyear contracts tied
to continuing
appropriations
One year Obligations supported by
one year cash appropriations
One year
appropriations
Multiyear contracts tied to annual
cash appropriation
Current System New System

5. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
4. How will the transition to Annual Cash based Appropriation look
like
Current System New System
Obligation based Appropriation Annual Cash Appropriation
Y-1
12-month
Y-2
12-month
Y-1
12-month
Y-2
12-month
Y-1
12-month
Y-2
12-month
Y-1
12-month
Y-1
12-month
Y-1
12-month
000Y-2
3-
month
Jan 1 Dec 31 / Jan 1 Dec 31
Jan 1 Dec 31 / Jan 1 Dec 31
Jan 1 Dec 31 / Jan 1
Jan 1 Dec 31 / Jan 1
Inspection/ Verification ( Current System) Inspection/ Verification ( New System)
Payment ( Current System) Payment ( New System)
Payment can
even go beyond 2
years
Extended
Payment
Period
Discipline based on a one-year cash plan (the budget is an annual PLAN)
Obligations are Intentions, Cash Disbursed are actions

6. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
5. How is the Transition being implemented

7. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
6. Update on the BRP Implementation *
THREAD DETAILS STATUS
Multi-year contract
procedures under
the MYOA/ MYCA
A provision in the multi-year contract will be added to reiterate that
there will be no guarantee of appropriation/s in the succeeding years
budget especially with the implementation of the Annual Cash
Appropriation
Extended Payment
Period
Approved by DBM Secretary Diokno. A brief introduction on EPP will
be included in the Budget Call
Cash Management DBM Letter Circular No. 2017-14 on Cash Management Reforms was
issued last December 4, 2017, requiring Club of 10 agencies , BTr, and
DBM to submit Cash Planning Report (CPR)
Workshop for top ten Spending Agencies on how to do the CPR
Inventory of Accounts Payables and the obligations not yet due and
demandable shall be collected to have an estimation of the cash
requirements from 2018-2020
*As of December 7, 2017Done In Progress

8. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
6. Update on the BRP Implementation *
THREAD DETAILS STATUS
Disbursement
Monitoring/
Reporting
On going discussion on the preparation of Monthly Monitoring
Report among BTB, FPRB, ICT Group, and BTr
Circulars Circular on the call for the Inventory of Accounts Payable
*As of December 7, 2017Done In Progress

9. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
7. In Summary Effects of Annual Cash Appropriation to Key Players
STAKEHOLDER EFFECTS
Congress and President Agencies more accountable
Budget more transparent in cash terms; simpler to track
Agencies Better Management
Timely Implementation
Contractors and
Suppliers
Faster and greater certainty of payment

10. Republic of the Philippines
DEPARTMENT OF BUDGET AND MANAGEMENT
THANK YOU!