The Philippines has demonstrated significant progress in strengthening transparency, accountability, and efficiency in public financial management (PFM), according to the latest Basic Public Expenditure and Financial Accountability (PEFA) Assessment Report, officially launched on June 10, 2025.
The assessment, conducted from October 2024 to April 2025 by the PFM Committee, with support from development partners—including the Asian Development Bank, Agence Française de Développement, The Global Fund, UNDP, UNICEF, the UN Regional Coordinator in the Philippines, the World Bank, and the International Fund for Agricultural Development—highlighted the country’s progress across key areas of PFM performance.
At the launch event, Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, Chairperson of the PFM Committee Principals, led the full disclosure of three PEFA reports: the Basic PEFA++, the Disaster Resilient and Responsive PFM, and the Child-Responsive PFM.
Covering the period from 2021 to October 31, 2024, the PEFA assessment provided an objective evaluation of the Philippines’ PFM systems against global benchmarks. Impressively, 20 out of 31 performance indicators were rated above the basic level, demonstrating alignment with international good practices.
Key Highlights:
- Improved budget reliability and transparency in public finances.
- Higher quality and accessibility of key budget documents, such as the People’s Budget series.
- Enhanced service delivery performance information, ensuring resources are directed where most needed.
- Implementation of the country’s first Medium-Term Fiscal Framework (MTFF), promoting fiscal discipline and long-term strategic planning.
“Aggregate expenditure outturn is improving, which means that the Philippines today has more reliable budgets compared to previous years. This is one of the most critical areas of progress. Congratulations to the government for the work done in this regard,” said Srinivas Gurazada, Head of the PEFA Secretariat.
The Philippines was also praised for making budget documents more accessible and citizen-friendly. These efforts are seen as pivotal in strengthening public trust and fostering civic participation.
“By making key budget documents more accessible, such as through the People’s Budget, the government is helping ordinary Filipinos better understand how public funds are allocated and spent,” said Secretary Pangandaman. “These reforms not only build public trust but also empower citizens to actively participate in ensuring responsible public spending.”
The International Budget Partnership previously named the Philippines the most fiscally transparent country in Asia, a distinction reaffirmed by the latest PEFA findings.
The assessment further commended the Philippine government for launching the MTFF, which incorporates macroeconomic forecasting, fiscal risk analysis, and medium-term expenditure planning to ensure more predictable and transparent budgeting. This strategic approach enables more targeted investments in critical areas such as education, healthcare, and infrastructure.
Established in 2001, the PEFA framework is the global standard for evaluating public financial management systems. Its evidence-based methodology offers insights into system strengths, gaps, and reform opportunities.
“Let all of these serve as our guide toward building a Bagong Pilipinas—with a PFM system grounded in efficiency, transparency, and accountability, in fulfillment of our Agenda for Prosperity,” Secretary Pangandaman concluded.
