1st PAGBA Quarterly Meeting and Seminar

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1st PAGBA Quarterly Meeting and Seminar Public
Financial Management Reforms Towards Inclusive
Development
Secretary Florencio B. Abad Department of Budget
and Management
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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 authors interpretations
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2010-2012 Restoring Public Trust
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Opening Salvo Zero-Based Budgeting
Ang anumang pagbabago ay magmumula sa pagsiguro
natin na magwawakas na ang pagiging maluho at
pagwawaldas.
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Commitment to Fiscal Consolidation
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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

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Delivering the Dividends of Reform

• Increased Share of Social, Econ Services

Source of Basic Data DBM
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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 Q1Q2
  in NHIP closing rural health unit gap

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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

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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

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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

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Leveraging Technology

• Government Integrated Financial Management
  Information System
• Philippine Government Electronic Procurement
  System
• Government Manpower Information System and
  National Payroll System
• Cashless Purchase Cards

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PH Newest Aspiring Tiger
Inquirer Front Page
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Challenge for 2013-2016 Inclusive Development
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Wealth Power in the Hands of a Few
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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

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PAGBA as Key Advocate of Reform
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1st PAGBA Quarterly Meeting and Seminar Public
Financial Management Reforms Towards Inclusive
Development
Secretary Florencio B. Abad Department of Budget
and Management