MANILA, Philippines - The Aquino government's reforms in budget management has been praised by the International Monetary Fund (IMF).
In a statement, the Department of Budget and Management (DBM) said the IMF's Public Financial Management blog cited the Philippines as a pioneer in performance budgeting for its 2014 "Performance Informed Budget" (PIB).
The IMF-PFM blog called the PIB as "the single most important budgeting innovation in years."
"For the first time, an agency’s budget is now presented alongside its performance targets and outcomes. In contrast to the traditional line-item budgeting approach adopted in previous budgets, the PIB pushes for increased agency accountability by presenting a performance-oriented and results-based budget," Budget Secretary Florencio Abad said.
Under the new PIB structure, Abad said an agency's budget already identifies specific major final outputs and performance indicators within its budget. For instance, this may include the number of classrooms to be constructed by DepEd or number of roads and bridges to be constructed by the Department of Public Works and Highways,
“We are committed to driving and institutionalizing reforms such as these, which will push government to spend public funds as efficiently as possible. There is immense public clamor now for more transparency and accountability in public expenditure, and the PIB is a timely and significant measure that will allow us to facilitate exactly that. More important, however, the PIB is designed precisely to benefit citizens through the improved delivery of public goods and services across the country,” he said.