Department of Finance seeks addition of accountability measures in government cash transfer plan

MANILA, Philippines - The Department of Finance (DOF) is looking at enhancing the government’s Conditional Cash Transfer (CCT) program by putting in place accountability measures.

This and other measures to help the Philippines survive the global financial turmoil are among the initiatives the government is looking at for the 2009 Philippines Development Forum (PDF).

In a working paper on this year’s PDF scheduled in June, government officials said the CCT program should be applauded and supported by donors.

“It is important that the scale up of these programs features a strong focus on reliable targeting mechanisms, accountability measures and strong supply side program to ensure quality basic education and health services are available to the most disadvantaged. This priority needs to be further strengthened by a strong focus on results and the measurement of performance, rather than on inputs, such as long lists of studies, measures, and regulations,” said the PDF technical working group which includes the Finance department.

The PDF should also be looking into ways on how to address the government’s swelling budget deficit and job losses arising from the worldwide financial meltdown.

The government is looking at keeping the deficit ceiling at P177 billion this year, revised from an earlier program of P102 billion due to the need to spend more in the wake of the global crisis.

In the first two months of the year, the budget deficit already hit P67 billion, or more than double the P32.9 billion posted in the same period last year.

The PDF working group also stressed the need to work towards the achievement of Millennium Development Goals of eradicating extreme poverty and hunger, achieving universal primary education, eradicating child mortality, improving maternal health and combating AIDS are less likely to be achieved in these times given the external environment.

However, the group noted the need for government to raise revenues to be able to have funds for social services and poverty alleviation.

“Furthermore, in an environment of resource constraint and increasing needs, it will be increasingly important to strengthen the focus on Public Financial Management including effective use of existing government and donor resources and budget execution,” the PDF working group said.

Finally, the working group also stressed the need to improve the investment climate in the Philippines to help the country attract more businessmen and working capital.

The PDF is a yearly gathering of government officials, the donor community and members of civil society aimed at resolving perennial social concerns and the achievement of the so-called Millennium Development Goals.