IMF cites Phl for budget management

MANILA, Philippines - The International Monetary Fund (IMF) has cited the Philippines for its reforms in budget management.

In a statement, the Department of Budget and Management (DBM) said the IMF’s Public Financial Management blog has noted the country’s proposed P2.268-trillion national budget for 2014 as a pioneer in performance-based budgeting.

This is dubbed by the government as Performance Informed Budged (PIB), a reform introduced in February 2013 that focuses on achieving outputs alongside the implementation of the national budget.

“For the first time, an agency’s budget is now presented alongside its performance targets and outcomes. In contrast to the traditional line-item budgeting approach adopted in previous budgets, the PIB pushes for increased agency accountability by presenting a performance-oriented and results-based budget,” Budget Secretary Florencio Abad said in a statement.

“Under the new PIB structure, an agency’s budget already identifies specific major final outputs and performance indicators within its budget. This may be expressed in the number of classrooms to be constructed by DepEd (Department of Education), for example, or the number of conditional cash transfer beneficiaries served by DSWD, as well as the number of roads and bridges to be constructed by DPWH, to name a few,” Abad continued.

The DBM also noted the PIB goes hand in hand with other efforts of government agencies in attaining good governance, peace and rule of law, poverty reduction, integrity of environment, and inclusive growth.

“We are committed to driving and institutionalizing reforms such as these, which will push government to spend public funds as efficiently as possible. There is immense public clamor now for more transparency and accountability in public expenditure, and the PIB is a timely and significant measure that will allow us to facilitate exactly that. More important, however, the PIB is designed precisely to benefit citizens through the improved delivery of public goods and services across the country,” Abad said.