1st PAGBA Quarterly Meeting and Seminar
Public Financial Management Reforms
Towards Inclusive Development
Secretary Florencio B. Abad
Department of Budget and Management
Objectives of Effective PEM
PUBLIC EXPENDITURE MANAGEMENT
FISCAL
DISCIPLINE
ALLOCATIVE
EFFICIENCY
OPERATIONAL
EFFICIENCY
“SPENDING
WITHIN
MEANS”
“SPENDING ON
THE RIGHT
PRIORITIES”
“SPENDING
W/ MEASURABLE
RESULTS”
Schick (1998) and author’s interpretations
2010-2012: Restoring Public Trust
Opening Salvo: Zero-Based Budgeting
“Ang anumang pagbabago ay magmumula
sa pagsiguro natin na magwawakas na ang
pagiging maluho at pagwawaldas.”
Commitment to Fiscal Consolidation
Tighter Alignment with Priorities
• 2010: Zero-Based Budgeting
• 2011: Alignment of Budget with
5 Social Contract KRAs
–
–
–
–
–
Transparent, Accountable & Participatory Governance
Poverty Reduction and Empowerment of the Poor
Rapid, Inclusive and Sustained Economic Growth
Just and Lasting Peace and Rule of Law
Integrity of the Environment and Climate Change
Adaptation and Mitigation
• 2012: Program Budgeting Approach
Delivering the Dividends of Reform
Increased Share of Social, Econ Services
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
Social Service
Economic Service
Debt Service
Gen. Public Service
Defence
Net Lending
5.0%
0.0%
Source of Basic Data: DBM
Delivering the Dividends of Reform
Meaningful Social Services
• Pantawid Pamilyang Pilipino
– Expansion to cover 4.6M by 2015
– Supplants dependency ties w/ traditional patrons
• Closing the Gaps in Human Investments
– Supporting K-12 Basic Education Reform by
closing teacher, classroom, textbook gap
– Supporting Universal Healthcare by covering
Q1&Q2 in NHIP & closing rural health unit gap
Faster Budget Execution
• 2010: Disaggregation of Lump Sum Funds
• 2011: Procurement Innovations (Early
Procurement & Expansion of PhilGEPS)
• 2012: Account Management Teams
• 2013: One-Year Validity of Appropriations
Performance Budgeting
• 2011: Review of Organizational
Performance Indicator Framework
• 2011: Started Work on Results-Based
Performance Management System
• 2012: Performance-Based Incentive
System and Performance-Based Bonuses
Fiscal Transparency and Participation
• 2010: Government-CSO Principles of
Constructive Engagement
• 2011: Mandatory Disclosure Provisions
(2012: Transparency Seal)
• 2011: NGA-CSO Budget Partnerships
• 2011: Use of Technology for Transparency
(PDAF webpage, BudgetNgBayan.Com, etc.)
• 2012: Bottom-Up Budgeting
Leveraging Technology
• Government Integrated Financial
Management Information System
• Philippine Government Electronic
Procurement System
• Government Manpower Information
System and National Payroll System
• Cashless Purchase Cards
PH: “Newest Aspiring Tiger”
Inquirer Front Page
Challenge for 2013-2016:
Inclusive Development
Wealth & Power
in the Hands of a Few
PFM Reform in Support
of Inclusive Growth
• Fiscal Discipline: sustain trajectory of fiscal
consolidation, 2% deficit-to-GDP by 2013
• Allocative Efficiency: put horse before cart
through Budget Priority Framework
• Operational Efficiency: new face of budget:
– Budget as Release Document
– Performance-Informed Budget
• Deeper Fiscal Transparency & Participation
PAGBA as Key Advocate of Reform
1st PAGBA Quarterly Meeting and Seminar
Public Financial Management Reforms
Towards Inclusive Development
Secretary Florencio B. Abad
Department of Budget and Management