The Public Financial Management Committee (PFMC), comprised of principals from the Department of Budget and Management (DBM), the Department of Finance (DOF), and the Commission on Audit (COA), has made significant strides toward achieving the Marcos Jr. administration’s socioeconomic goals of bureaucratic efficiency and sound fiscal management.
During the PFMC meeting held today, 19 December 2022, Budget Secretary Amenah F. Pangandaman reiterated the DBM’s continued thrust in using digital technology to pursue Public Financial Management Reform agenda, as well as the milestones reached by the Committee.
“I am happy to share that just yesterday, the Public Financial Management Committee comprised of the DBM, the DOF, and COA, approved the adoption of the IFMIS (Integrated Financial Management Information Systems), drafted an Executive Order in line with the implementation of the IFMIS, and adopted the Administration’s Draft of the proposed Progressive Budgeting for Better and Modernized (PBBM) Governance Act,” Secretary Pangandaman said.
The Budget Secretary noted that the adoption of the IFMIS will enhance the Budget and Treasury Management System (BTMS) to resolve issues; promote the use and enhancement of the New Government Accounting System or eNGAS and eBudget; and allow for a decentralized and localized development of financial solutions/systems subject to centralized guidelines.
The BTMS is a centralized database that will facilitate the generation of vital information on 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.
“Through this digital transformation program and the development of a convergent hub, we will be able to have real time and consolidated reports, achieve efficiency of government systems, ease of doing business and sustainability of systems, and establish conditions that would help reduce corruption and poverty incidence,” Secretary Pangandaman said.
In line with this, the Committee has also drafted a proposed Executive Order to update EO No. 55. The proposed EO will direct all departments, agencies and instrumentalities including GOCCs to adopt and implement IFMIS in the processing of government financial transactions and reinstate the role of the PFM Committee in the development and implementation of the PFM Reform Roadmap to expedite the development of IFMIS.
“With the transition to the full adoption of IFMIS, we hope to secure the digital transformation objectives in our 8-Point Socioeconomic Agenda and achieve not only transparency and accountability, but also bureaucratic efficiency, sustainability and, ultimately, economic growth through proper use of technology,” the Budget Secretary explained.
Lastly, the PFM Committee also adopted the Administration’s Draft of the proposed PBBM Governance Act. The initiative seeks to institutionalize PFM principles for best practices in cash budgeting.
“All these will move us closer to our socioeconomic goals of bureaucratic efficiency and sound fiscal management,” Secretary Pangandaman said.