The Philippines has been chosen as one of the convenors of the Global Initiative for Fiscal Transparency (GIFT), where it will be represented by the Department of Budget and Management (DBM), alongside Brazil, the United States, the World Bank and the International Monetary Fund.
“We are now seen as a country making strides in upholding transparency, accountability and civil engagement, especially in the financial transactions of the government,” Budget Secretary Florencio B. Abad told BusinessWorld in a phone interview.
The Philippines was selected during the 2nd Open Government Partnership (OGP) Conference in Brasilia last month.
The country is also one of the founders of the organization, together with Brazil, Indonesia, Mexico, Norway, South Africa, the United Kingdom and the United States.
The GIFT initiative aims to create a network of governments, international organizations and civil society groups, pushing for reforms in fiscal transparency, participation and accountability in the local, national and international level.
It upholds good governance in fiscal policy — taxing, borrowing, spending and investing public resources — access to information and public participation.
Mr. Abad said the DBM would be working on several projects in line with GIFT goals.
“Citizens should be able to engage even at the very beginning of the national budget preparation, such as in the creation of macroeconomic assumptions,” the Cabinet official said.
Currently, only the Development Budget Coordination Committee — a panel comprised of senior economic managers — drafts the country’s macroeconomic assumptions.
The projections on growth, revenues and expenditures set the foundation for the national budget, the deficit cap and priorities for the year.
“We also want to publish information on the government’s borrowing operations. What are these loans, their terms and their purpose?” Mr. Abad explained.
Revenue collections will also be bared so the public can identify what areas and entities contribute the most taxes and why.
“These projects will not only create greater trust, they will also inspire more investor confidence,” the Budget chief said.
The DBM has made significant strides in fiscal transparency under the Aquino administration. Most recently, it launched the 2012 People’s Budget — a publication that “simplifies, humanizes and visualizes” the national budget.
This is the second straight year that it has released a People’s Budget. The 2012 issue promises to be more accessible, since it will be published in English, Tagalog and Visayan, to be distributed across the country.
It also just rolled out the Budget ng Bayan Web site(www.budgetngbayan.com), which features basic information, an overview of the budget cycle, key principles in the 2012 national budget and its expenditure priorities.
The Budget ng Bayan is also linked to social networking Web sites such as Facebook and Twitter so users can post their comments, questions and complaints.
However, there have also been stumbling blocks. The People’s Participation in Budget Deliberations bill has stalled in Congress. The measure was approved by the House of Representatives last April, but it is still under discussion at the Senate today.
On a related note, the DBM showcased the Philippines’ progress on the budget reforms during the 2nd OGP Conference last month.
The bottom-up budgeting program, which requires selected government agencies to engage with the poorest municipalities in the country, has already been enacted for the preparation of the 2013 national budget.
An estimated 557 local government units out of a total 609 have already submitted their priority projects for next year, Mr. Abad said.
Government agencies must now allot 10% of their budget to fund these programs.
“No country has ever attempted bottom-up budgeting on a national scale,” he claimed.
The national payroll system, meanwhile, is already on a pilot run and it is set to be installed across all agencies by the yearend. Once implemented, the salaries of all public employees will no longer pass through government agencies.
The funds will be distributed by the Bureau of Treasury straight into state workers’ bank accounts, with contributions to the Government Service Insurance System automatically remitted.
Lastly, the purchase card system for the Armed Forces of the Philippines (AFP) will be bid out in May. Under the project, the AFP will use debit cards for all its procurement operations.
The cards will have a limit and can only be used for approved purchases.
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By: Diane Claire J. Jiao
Source: BusinessWorld, May 11, 2012
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