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PUBLIC FISCAL MANAGEMENT

December 14, 2014

Lecturer: ANNA C. BOCAR, MBA, LL.B. DBA

Topics to share:
1. Public Fiscal Management, define
2. Reasons why PFM so important to the Philippines
3. Results of a sound PFM system
4. The partners in PFM reform in the Philippines
5. How PFM performance is measured?

Learning Objectives :
1. To understand the what, why, who, and how
of Public Fiscal Management

Introduction
The success of the reforms in the country
depend on the three pillars which a democratic
governance anchored on. These are the principles
of :
1. transparency,
2. accountability and the
3. active and informed participation of
a nations citizenry

Introduction

In the Philippines, the campaign slogan of


President Benigno Simeon Aquino III was
Kung Walang Korupt, Walang Mahirap
(No corruption, No poverty).

What is the instrument to realize the


slogan?
* The principal tool is the

Philippine National Budget.

Introduction
basic education

budgetary
allocation

poverty

What are to
be reformed?
universal health
coverage

public-private
partnerships
agriculture

Introduction

How does this reform be prepared?


Answer: Through a program
called
Public Fiscal Management

Public Fiscal Management

What is Public Fiscal Management all about?


PFM is an essential part of the
governments plans to improve transparency,

accountability, public institutions and


participatory governance in pursuit of more
inclusive growth and poverty alleviation.

Public Fiscal Management

resource mobilization

the way the government


raises its income, in the form
of taxes, customs duties and
other revenues,

expenditure management
to deliver essential services to its citizens
such as education, healthcare and other
social programs, roads and
infrastructure, rule of law and security,
and other areas that improve the lives of
the citizens.

Public Fiscal Management

PFM is seen as a set of inter-related systems and processes,


including organizational and political cultures, rather than as
a stand-alone activity.

means

In practice, PFM refers to the


by which
government addresses the performance of its systems in
budget preparation and execution, financial controls including
procurement, accounting and treasury management, fiscal
reporting, internal and external audit, debt management, and
other aspects related to the budgetary process.

Civil society has also become an important contributor to


sound and robust PFM systems.

Why is PFM so important to the Philippines?


Reasons:

1. Essential function of every government and


governance process
2. Greater expectations and rising aspirations of
Filipinos
3. Peoples awareness
4. Reduce the opportunity for misuse of funds

Why is PFM so important to the Philippines?


Reasons:
5. It also aids decision-makers in in the performance
of their functions and decide where to allocate funds
6. It helps inform the citizen where and how the public
funds are actually being spent
7. Helps to improve the delivery of public services
8. Influences and helps in the reduction of poverty in
the country

One of the results of a sound PFM system

more transparent, efficient and


accountable government
which enables for a better delivery of
services to the citizens

Who are the main partners


in PFM reform in the Philippines?
The central government agencies who are
responsible for the country's economic growth and financial aspects
are the lead actors in PFM reform in the Philippines.
These agencies are the
Department of Budget and Management (DBM),
Department of Finance (DOF) and its Bureaus, particularly the
Bureau of Treasury (BTr),
Bureau of Internal Revenue (BIR) and
Bureau of Customs (BOC), and the
Commission on Audit (COA), with engagement of the
National Economic and Development Authority (NEDA) and
Office of the President

Who are the main partners


in PFM reform in the Philippines?

All public bodies and public officials


at all levels of government, whether it is the
largest department of the government
An elected member of the Congress, or the
smallest of Barangays.

Who are the main partners


in PFM reform in the Philippines?

International development
partners like:
Australia - one of the largest
bilateral donors to the Philippines

Who are the main partners


in PFM reform in the Philippines?

Other development partners


like:
Asian Development Bank (ADB)
International Monetary Fund (IMF)
World Bank
European Union

How do we measure PFM performance in the Philippines?

Assessment. One of the most common


tools for measuring PFM performance is the
Public Expenditure and Financial Accountability (PEFA).
The PFM Performance Measurement Framework
(or PEFA Framework) was developed as a

contribution to the collective efforts of


many international stakeholders
to assess and develop essential PFM systems.

Thank You