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President Ferdinand Marcos Jr. has endorsed the five-year Public Financial Management (PFM) Reforms Roadmap, a transformative initiative aimed at modernising the government’s financial operations through digitalisation and improved systems. Covering 2024 to 2028, the roadmap marks a critical shift in how the Philippine government manages public resources, ensuring greater efficiency, transparency, and accountability in delivering services to Filipinos.
The roadmap focuses on modernising financial management through digital solutions, streamlining operations, and providing real-time data for decision-making. Key initiatives include adopting the Budget and Treasury Management System (BTMS) and the Unified Accounts Code Structure (UACS) to replace outdated processes and improve financial reporting and cash management for efficient resource allocation.
President Marcos emphasised the importance of digitalisation in public financial management, noting its necessity for informed decision-making today. He highlighted that digital systems will improve service delivery, from faster disaster relief to better healthcare, by enabling accurate tracking and management of public funds. By adopting these technologies, the government aims to enhance transparency and ensure public spending is directed toward impactful projects.
One of the key aspects of the PFM Reforms Roadmap is the alignment of planning and budgeting across all levels of government. Digital platforms will facilitate coordination between local, regional, and national units, ensuring that development efforts are cohesive and well-synchronised.
This alignment is critical for more effective resource allocation and the timely execution of government projects, particularly in sectors like healthcare, education, and infrastructure. The improved coordination will also allow for quicker responses in times of crisis, such as natural disasters, ensuring that funds are available when they are needed most.
The roadmap also includes significant reforms in disaster risk reduction and management (DRRM), with plans to modernise cash management systems to ensure that funds are readily available during emergencies. Automating these processes will enable the government to respond swiftly to disasters, reducing the time it takes to provide relief to affected communities. The digitalisation of financial management systems will ensure that funds are tracked and managed more efficiently, allowing for quicker and more effective disaster response.
To support the adoption of these digital systems, the roadmap includes the establishment of a Public Financial Management Institute, which will focus on training government employees in modern financial management technologies. This capacity development initiative is crucial for building a digital-ready workforce capable of managing advanced systems and ensuring that the reforms are implemented effectively.
The institute will provide specialised training programmes aimed at equipping public sector workers with the skills they need to navigate digital financial platforms and optimise their use for public service delivery.
Additionally, the roadmap aims to standardise internal audit practices across government agencies by implementing digital audit systems. These systems will enhance accountability and transparency in the use of public funds, ensuring that all expenditures are thoroughly monitored and evaluated.
The government’s commitment to digitalisation in financial management is expected to reduce bureaucratic delays, eliminate inefficiencies, and foster a more transparent and accountable system of governance.
The PFM Reforms Roadmap, developed under Executive Order No. 29 and supported by key agencies such as the Department of Budget and Management (DBM) and the Department of Information and Communications Technology (DICT), reflects the administration’s vision of building a modern, digitally empowered government. By embracing digital financial management, the Philippine government is positioning itself to deliver better services to its citizens, improve resource allocation, and ultimately, drive socio-economic development.
The roadmap is a critical step toward realising the vision of “Bagong Pilipinas” (New Philippines), where digital systems and coordinated collaboration form the foundation of public financial management, ensuring that the government serves the Filipino people more efficiently and effectively.
