MANILA — Department of Budget and Management (DBM) Secretary Amenah “Mina” F. Pangandaman emphasized that the Public Financial Management (PFM) Reforms Roadmap 2024-2028 is vital to enhancing the government’s budgetary processes and boosting the country’s credit rating.
She made the statement during the handover of the PFM Reforms Roadmap 2024-2028 to President Ferdinand R. Marcos Jr. at the Malacañan Palace on 17 September 2024.
The Budget Secretary highlighted that while positive economic indicators, including employment rates, GDP growth, inflation, foreign direct investment (FDI), and foreign exchange (FOREX), are showing promising results, these “numbers” alone are not enough to secure an A credit rating. She stressed that bolstering governance frameworks is equally essential in achieving this goal.
“This [roadmap] is part of our governance and bureaucratic efficiency and reform, which is also one of the crucial components of our road to ‘A’ [credit rating]. Andyan na, ang gaganda na ng mga numbers. We just have to solidify that—employment rates, our GDP growth, inflation—everything. FDI, Forex… lahat. We have already put in place how to go about it,” Secretary Mina said.
She further explained that the roadmap addresses this governance aspect by promoting greater efficiency, transparency, and accountability in managing public funds. This, in turn, will help solidify the country’s economic gains and further augment the overall credibility and stability required to attain higher credit rating.
It can be recalled that in August 2024, Japan-based Rating and Information Inc. (R&I) upgraded the Philippines’ credit rating to A-, an improvement from the previous year’s BBB+ rating.
The roadmap outlines key activities that align planning, budgeting, and auditing processes across government agencies, ensuring more efficient public service delivery and fiscal responsibility. Sec. Pangandaman highlighted that 13 activities under the roadmap have already started, covering areas such as Planning and Budget Linkages, Cash Management, Public Asset Management, and Digital PFM.
“We’ve started rolling out ‘Digital PFM’ like the Budget and Treasury Management System (BTMS) in five major departments, including DOH, DSWD, NEDA, DOF, and DBM. This will accelerate budget processing, procurement, and implementation, improving our ability to meet our deficit-to-GDP targets,” Sec. Mina added.
The comprehensive PFM strategy also ensures a streamlined approach in disaster risk reduction and management (DRRM), procurement, and local government financial management, all major elements in building investor confidence and securing better credit standing for the country.
Another fundamental component is capacity development, with the DBM consistently delivering training to government personnel nationwide. Secretary Pangandaman noted, “[As for] capacity development, we’ve been doing it. We’ve trained from national to local government units, more than 7,000 across the country. And hopefully we’ll have our own PFM institute, which the President mentioned earlier, to make it more coherent.”
The PFM Reforms Roadmap 2024-2028 is aligned with the broader economic reform agenda, reinforcing the country’s macroeconomic stability. — PR
