Philippine budget is more transparent according to development partners

THE Philippines has shown significant progress in improving transparency and accountability in public financial management (PFM).

This was one of the results revealed in the latest Basic Public Expenditure and Financial Accountability (PEFA) Assessment Report. The assessment was conducted by the PFM Committee from October to April 2025, with support from development partners — including Asian Development Bank, Agence Française de Développement, The Global Fund, UN Development Programme, United Nations Children's Fund, UN Regional Coordinator in the Philippines, World Bank, and International Fund for Agricultural Development — who acknowledged the country's improvements across key areas of PFM performance.

Department of Budget and Management Secretary Amenah Pangandaman says that reforms not only build public trust but also empower citizens to actively participate in ensuring that government resources are used effectively and responsibly as it shows the country’s progress toward transparency. PHOTO FROM DBM

Department of Budget and Management (DBM) Secretary Amenah Pangandaman, Chairman of the PFM Committee Principals, allowed the full disclosure of the assessment reports on the Basic PEFA++, together with the Disaster Resilient and Responsive PFM and Child-responsive PFM, which were officially launched in Pasay City on June 10, 2025.

Conducted in 2024, the PEFA assessment offers a comprehensive and objective evaluation of a country's PFM systems and reforms between 2021 and Oct. 31, 2024 against global benchmarks.

Notably, 20 out of 31 performance indicators in the main PEFA assessment were rated above the basic level and aligned with international good practices.

Key findings highlight notable improvements in budget reliability and transparency of public finances, with the PEFA Secretariat commending the Philippine government's commitment.

The Philippines also received high praise for the quality and openness of its key budget documents, underscoring the Philippine government's ongoing efforts to make PFM more transparent, accountable, and citizen-friendly.

Established in 2001 by seven development partners, the PEFA framework is the global standard for evaluating the performance of PFM systems. Its evidence-based approach provides valuable insights into strengths, gaps, and opportunities for reform.