Australia commits P1.3B for local fund mgt program

MANILA, Philippines - The Aquino administration and the Australian government have entered into a long-term partnership to improve the efficiency and transparency of public fund use in the Philippines.

Australian Ambassador to the Philippines Rod Smith said the Australian government supports government efforts to modernize its public financial management system.

 “A more effective and open budget process in the Philippines is essential to combat corruption and direct public spending to where the development needs are greatest. Initiatives such as the Zero-Based Budgeting and Open Government Partnership already signal the Administration’s unwavering commitment,” Smith said.

As such, Australia has committed P1.3 billion to implement the Philippines-Australia Public Financial Management (PFM) Program from 2011-2016.

Smith said the program would prioritize practical budgeting and expenditure reforms.

 “It will help those responsible for managing public funds to do their jobs efficiently, effectively and most importantly, in an accountable way so that Filipinos benefit from improved delivery of goods and services,” he said.

For the project, the Australian government is partnering with the Department of Budget and Management, the Department of Finance-Bureau of Treasury and the Commission on Audit to craft out institutional roadmaps.

Budget and Management Secretary Florencio Abad, for his part, welcomed the project.

 “This comprehensive PFM reform agenda aims to clarify, simplify, improve and harmonize the financial management processes and information systems in the Philippines during the Aquino administration. This will help the Philippine government ensure that each and every peso spent counts in empowering the poor and the marginalized,” he said.

Australia and the Philippines have been partners in development cooperation for over 50.

The partnership with the Philippines is one of Australia’s largest, with more than P20 billion in official development assistance over the last five years.

According to the Budget Department, Australia’s current annual aid to the Philippines is estimated at P5.5 billion - placing Australia among the top grant donors to the Philippines.