The Philippines has shown significant progress in improving transparency and accountability in public financial management (PFM).
This was one of the results revealed in the latest Basic Public Expenditure and Financial Accountability (PEFA) Assessment Report. The assessment was conducted by the PFM Committee from October to April 2025, with support from development partners—including Asian Development Bank, Agence Française de Développement, The Global Fund, UN Development Programme, United Nations Children’s Fund (UNICEF), UN Regional Coordinator in the Philippines, World Bank, and International Fund for Agricultural Development—who acknowledged the country’s improvements across key areas of PFM performance.
Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman, Chairperson of the PFM Committee Principals, allowed the full disclosure of the assessment reports on the Basic PEFA++, together with the Disaster Resilient and Responsive PFM and Child-Responsive PFM, which were officially launched on June 10, 2025, in Pasay City.
Conducted in 2024, the PEFA assessment offers a comprehensive and objective evaluation of a country’s PFM systems and reforms, between 2021 and October 31, 2024, against global benchmarks.
Notably, 20 out of 31 performance indicators in the main PEFA assessment were rated above the basic level and aligned with international good practices.
Key findings highlight notable improvements in budget reliability and transparency of public finances, with the PEFA Secretariat commending the Philippine government’s commitment.
“Aggregate expenditure outturn is improving, which means that the Philippines today has more reliable budgets compared to the past years. This is one of the most critical and important areas where progress was seen. Congratulations to the government for the work done in this regard,” PEFA Secretariat Head Srinivas Gurazada said during the launch.
The Philippines also received high praise for the quality and openness of its key budget documents, underscoring the Philippine government’s ongoing efforts to make PFM more transparent, accountable, and citizen-friendly.
“By making key budget documents more accessible—such as through the People’s Budget series—the government is helping ordinary Filipinos better understand how public funds are allocated and spent. These reforms not only build public trust but also empower citizens to actively participate in ensuring that government resources are used effectively and responsibly,” Secretary Pangandaman said.
The International Budget Partnership also previously recognized the Philippines as the most fiscally transparent country in Asia—a distinction reinforced by the latest PEFA assessment.
The PEFA Secretariat further noted improvements in service delivery performance information, a key element in ensuring that public resources directly benefit citizens: “PFM is for service delivery. And I’m so glad that performance information on service delivery is improving. This also means that the Philippine government is making very conscious efforts in ensuring that service delivery is aligned with public finances.”
The report also recognized the implementation of the government’s first-ever Medium-Term Fiscal Framework (MTFF), which integrates macroeconomic forecasting, risk analysis, and fiscal targets to strengthen the country’s fiscal discipline. This translates to more reliable and transparent fiscal strategies that promote better delivery of public services for the Filipino people, including education, healthcare, and infrastructure, ultimately ensuring that government funds are spent where they are needed most.
Established in 2001 by seven development partners, the PEFA framework is the global standard for evaluating the performance of PFM systems. Its evidence-based approach provides valuable insights into strengths, gaps, and opportunities for reform.
“Let all of these serve as our guide towards building a Bagong Pilipinas—with a PFM system grounded on efficiency, transparency, and accountability, in fulfillment of our Agenda for Prosperity,” Secretary Pangandaman ended.
Download the full PEFA Assessment Reports:
https://www.dbm.gov.ph/index.php/pefa-drr-pfm-and-child-responsive-pfm-assessment-reports
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