I’ve said it time and again, digitalization is our way forward. Among other efforts of the DBM for digitalization, we are working towards the development and implementation of the Budget and Treasury Management System.

The key objective of the BTMS is to achieve the future state of Public Financial Management where all spending agencies would capture government transactions at source using the BTMS as the sole accounting and fiscal reporting system. Our efforts towards digitalization of our procurement system are complementary initiatives.

Moreover, we will also explore reforms in our procurement processes. In fact, Executive Director Weng Ruiz and Atty. Dennis Santiago and I met with the World Bank Country Director Diop on the sidelines of the IMF-World Bank Annual Meetings at Washington DC two weeks ago to discuss technical assistance in this aspect.

With a complete digital ecosystem, we will strengthen the integrity of our processes, diminish human discretion, expedite inter-agency coordination, and ensure the efficient delivery of public services.

^[1] https://www.un.org/ecosoc/sites/www.un.org.ecosoc/files/files/en/qcpr/2018-sg-report-adv.pdf

To DBM Undersecretary and Association of Government Accountants of the Philippines or AGAP Inc. National President Tina Rose Marie Canda, PAO Chief Persida Acosta, our esteemed guests and resource speakers, officers and members of AGAP, and of course, to our participants—our public servants performing accounting, budgeting, auditing, cashiering, and other allied financial functions—good day and I am delighted to be with you today for the Annual National Convention Seminar of AGAP Inc.

I just arrived last Monday night from Washington D.C. where I joined the country’s economic managers in presenting the Philippines’ economic plans at the International Monetary Fund and World Bank Annual Meetings but I made sure to travel immediately here today. I would not miss the honor of being with all of you.

With its more than 50 years of service as an institution, AGAP has thrived through the many changes in our society. I truly admire how it grew from its six founding members in 1950, who dreamed of promoting the interests of government accountants, to an organization of more than 10,000 members from national government agencies, local government units, and government-owned or controlled corporations.

Last week, I joined the country’s economic managers in presenting the Philippines’ economic plans at the International Monetary Fund and World Bank Annual Meetings, and engaged with US-based business and financial communities at the Philippine Embassy in Washington, D.C. for a roundtable discussion on the Philippines’ strong economic recovery and robust outlook.

As I presented the country’s expenditure program, I shared how the Administration is working hard towards economic transformation that would be felt by every individual, family, and business in the Philippines as guided by our 8-point socioeconomic agenda: food security, improved transportation, affordable and clean energy, health care, social services, safe face-to-face education, bureaucratic efficiency, and sound fiscal management.

While the economic managers and their respective institutions are hard at work towards this end, this would not be possible without your help—our dear accountants and government financial managers, and the whole of AGAP Inc. who help carry out our pursuit of bureaucratic efficiency and sound fiscal management.

As we all know, the Department of Budget and Management (DBM) operates with the help of interrelated public financial management functions. Accounting is a critical dimension of this, along with budgeting, auditing, cash management, procurement, revenue generation, and public reporting on public sector financial operations.

As such, your insights, analyses, perspectives, and advice empower us, government leaders and managers, to make important decisions on the use of public resources to ultimately serve the public’s interest.

So all of you here today play this crucial role in the realization of our mission to lead public expenditure management and ensure the equitable, prudent, transparent and accountable allocation and use of public funds.

And we are grateful to organizations such as AGAP Inc. for uniting and capacitating our accountants and government financial managers, and for regularly convening and providing a venue to discuss updates and key strategies to keep up with our fast-changing times.

Indeed, AGAP Inc. has come a long way since its inception in 1950. And we are delighted to learn that your theme for this year’s convention resonates with one of our priority budget reforms that is crucial in our pursuit of bureaucratic efficiency and sound fiscal management—digital transformation.

In support of the Administration’s thrust for a lean, efficient, and responsive government workforce, the FY 2023 Proposed National Budget will facilitate the transformation and digitalization of the government to streamline the bureaucracy.

Digital Transformation of the Bureaucracy

We will pursue investments in information and communications technology to transform and digitalize government processes, records, and databases through e-governance.

Php 12.47 billion of the national budget was proposed to be provided for our ICT and digitalization programs and projects. This includes the improvement of revenue collection through digitalization, with the DOF receiving an allocation of Php 3.56 billion.

Moreover, the DICT was allocated Php 4.72 billion for its ICT Systems and Infostructure Development, Management, and Advisory Program, which includes funding for the implementation of the National Government Data Center Infrastructure and the National Government Portal to connect government departments and improve its accessibility.

The National Broadband Plan, aimed to improve overall internet speed and affordability in the country, is allocated Php 1.50 billion.

Digitalization of the Public Financial Management System

On our end at DBM, we are working towards the enactment of the Budget Modernization Bill, an overarching priority legislation of the Legislative-Executive Development Advisory Council (LEDAC) that will catalyze reforms in the budget process. It aims to improve the timeliness and efficiency of the implementation of government programs and projects.

The Bill covers the development and implementation of the Budget and Treasury Management System or BTMS. As a centralized database, it will:

• facilitate the generation of vital information of government financial transactions;
• enable real-time mapping of transactions, from purchase to payment; and
• allow expedient and accurate financial management, improved data governance, and enhanced oversight control.

The key objective of the BTMS is to achieve the future state of Public Financial Management where all spending agencies would capture government transactions at source using the BTMS as the sole accounting and fiscal reporting system.

We are likewise pushing for the gradual implementation of the Cash Budgeting System or CBS under Executive Order (EO) No. 91, s. 2019 to ensure timely and efficient implementation of government programs. It is expected that the CBS will be fully implemented by 2025.

Digitalization is our way forward. I cannot overemphasize how the digitalization of our public financial management systems will strengthen the integrity of our systems, diminish human discretion, expedite inter-agency coordination, and ensure the efficient delivery of public services. And speaking with all of you today, I am assured that we are not alone in this journey.

We hope that with your discussions in the coming days: the implications of digital transformation in public sector audit; the benefits and implications of financial inclusion; strengthening electronic process in procurement; the latest digitization efforts of oversight agencies such as the Bureau of the Treasury and the Bureau of Internal Revenue; and even the IT Infrastructure Roadmap of the DICT—you will strengthen your resolve to take part in implementing reforms while working towards good governance, transparency, and accountability.

In the same way, we at the DBM, support you, our government financial managers, as you continue to grow in your field and navigate the challenges brought about by forces both within and outside our control.

Before I end, let me take this opportunity to thank the leadership of Undersecretary Tina Rose Marie Canda—who has not only been a beacon at the DBM but I’m sure at AGAP Inc. also. I understand she is the first non-accountant head of AGAP Inc. I think this is not only a good reflection of Usec. Tina’s competence, but also of DBM’s value as an institution working within public financial management in the country.

It’s been a win-win to have Usec. Tina with the DBM and with AGAP Inc. It’s a bit early to say this, but the DBM and I will miss her dearly. Rest assured that we’ll work to keep her legacy, both in the DBM and AGAP Inc., live on.

That said, let’s continue to work together so that our digitalization efforts will not only translate to bureaucratic efficiency, but ultimately, to achieving our agenda for economic prosperity—one that is felt by every Filipino whom we are all sworn to serve with commitment and integrity.

Congratulations, AGAP Inc. and mabuhay tayong lahat!

Organized by the Bangko Sentral ng Pilipinas’ Investor Relations Group (BSP-IRG) and the Philippine Embassy and Philippine Trade and Investment Center in Washington, D.C., in cooperation with the Department of Finance (DOF)

Ambassador Romualdez, ladies and gentlemen, good afternoon to all of you.

First, I would like to thank the Philippine Embassy and the Philippine Trade and Investment Center for inviting us to share our insights on the Philippine economic outlook, the proposed Fiscal Year 2023 National Budget, as well as the important updates on the structural reform initiatives by the Marcos Jr. administration in pursuit of our Agenda for Prosperity.

Let me just share a common observation that we’ve seen the past days during our road shows, trade shows, and infra roadshows: optimism about the Philippine economy. This is not without basis. Businesses, consumers, and the government all agree that the Philippines is on track towards a strong recovery.

But we are all aware of the continued external challenges to recovery and economic transformation. Hence, we have prepared and designed our policies and programs to address these concerns.

The Medium-Term Fiscal Framework was previously presented by Secretary Diokno. Thus, the proposed budget for 2023 is consistent with the MTFF.

The 2023 Budget, which was recently been approved by our Lower House and will now be deliberated on by our Senate, has been designed to meet our Agenda for Prosperity.

The proposed budget for next year will amount to Php 5.268 trillion or roughly USD 92 billion, which is Php 244.4 billion or 4.9 percent higher than this year’s budget, and is equivalent to 22.2 percent of GDP.

To achieve these goals in the MTFF, the Marcos Jr. Administration also crafted an 8-Point Socioeconomic Agenda. On the part of the Department of Budget (DBM), the Fiscal Year 2023 Proposed Budget is tailor-fit according to the 8-point socioeconomic agenda and these priorities.

Social and human development expenditures, together with the aggressive increases in agricultural spending, corner 34.3 percent of the proposed national budget. Adding the remaining hard and soft infrastructure spending also gives room for the government to allocate at least 40 percent of its budget for these priority sectors.

To ensure constant food supply and food security, at least Php 160.7 billion or USD 2.72 billion or 3.1 percent has been allocated for direct intervention more for logistics and wider agricultural road networks.

Specific to the Agriculture sector, we gave an unprecedented boost of 39.2% year on year and allocated Php 184.1 billion or USD 3.12 billion.

Focused as well on economic growth, we will also build on the gains of the Build, Build, Build program, now we call Build, Better, More program—BBM.

Spending for the program is within the target and consistent with the MTFF—5 to 6 percent of the GDP from now until 2028.

Towards this end, we have increased the budget for Infrastructure Development. In particular, transportation allocation increased by 120.4 percent, from Php 75.8 billion or USD 1.28 billion in 2022 to Php 167.1 billion or USD 2.83 billion in 2023. We are working hard to achieve the Philippines’ first subway, as well as more busways for the commuting public.

The government will also invest heavily in expanding and improving the digital infrastructure in the country, to ensure a digitally enabled workforce and leverage on world-class and smart social infrastructures.

In fact, for 2023, some Php 12.47 billion or USD 218.77 million of the budget will be provided for information and communications technology, digitalization programs, and projects of the government. This includes allocation for the digital transformation programs of the Department of Finance (DOF) and its attached agencies, namely Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC), which are expected to improve the revenue collection in the country.

Towards economic transformation, we are committed to investing in our people through major social and human development expenditures.

Education, a constitutionally mandated priority in the Philippines, receives the highest budgetary allocation with Php 852.8 billion or USD 14.47 billion or 15.8 percent of the proposed FY 2023 budget.

We have also allocated some 9.7 percent or at least Php 512.26 billion or USD8.69 billion for Social Protection to ensure that no one would be left behind. With this budget, we continue to provide social assistance, especially in times of crisis such as natural disasters and we aim to address malnutrition, especially among children.

Finally, following our lessons learned from the COVID-19 pandemic, we have given the Health sector at least Php 298.97 billion or USD 5.075 billion or 5.7 percent of the budget to ensure the capability to prevent and withstand sickness and malnutrition.

We aim to strengthen the health workforce and, in line with the socioeconomic agenda for inclusivity, to provide health care and health facilities in the farthest regions of the country that are often neglected.

Alongside all of these budgetary allocations, we have a budget reform agenda. Foremost is the digitalization of the economy with the roll-out of the Budget and Treasury Management System or the BTMS in all agencies. We will likewise enhance bureaucratic efficiency through institutionalization of our Cash Budgeting System.

Through these efforts and initiatives, we aspire to provide every Filipino a fighting chance to manage life’s uncertainties and achieve their full potential.

We are working hard towards economic transformation that would be felt by every individual, family, and business in the Philippines.

We hope you will join us in our journey towards economic transformation by investing in the Philippines. On our part, we are providing our investors with a conducive regulatory environment to make your time and investments in the Philippines worthwhile.

Let us all be partners in pursuit of economic transformation and our agenda for prosperity.

Maraming salamat at Mabuhay!