Government allots P789 M for reforms in managing public finances

MANILA, Philippines - The government has set aside P789 million under the proposed 2016 national budget for the continuation of reforms in managing public finances.

The bulk or P727 million of the funds will be sourced from the proposed budget of the Department of Finance and Bureau of Treasury, while the remaining P62.2 million will come from the Department of Budget and Management.

President Aquino, in his budget message, said this allocation would allow for the implementation of technology platforms supporting public financial management (PFM) functions.

These include the Comprehensive Human Resource Information System, which was put up to manage the government’s human resource and payroll needs, and the Treasury Single Account Monitoring and Reporting System, which provides the BTr a consolidated view of its cash position.

At the same time, the budget will fund the sustained execution and management of policy reforms under the government’s PFM program.

The government has been implementing a PFM Reform Roadmap since 2011 through the Commission on Audit, the DOF and the DBM.

However, Aquino stressed the government still needs to build on these reforms and make them permanent through the passage of the Public Financial Accountability Act.

“These PFM reforms still need to be completed, scaled up, embedded, and fully practiced by agencies,” Aquino said.

“I therefore ask Congress to help us institutionalize these reforms by passing the Public Financial Accountability Act,” he said.

The International Monetary Fund last month called for the passage of this measure so the reforms in the budget process would be carried over to the next administrations.