OGP Asia and the Pacific Regional Meeting (Side Event)
February 5, 2025 | 9:00 AM
Grand Hyatt Manila
To our esteemed host, Makati Business Club (MBC);
Distinguished business leaders and members of the business community;
My colleagues in the National Government;
To all advocates and champions of open government and good governance;
A pleasant morning to all.
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
First, I thank the MBC, a member of the Philippine Open Government Partnership (PH-OGP) Steering Committee for organizing this event on the sidelines of our OGP Asia and the Pacific Regional Meeting 2025.
By fostering dialogue between the government and the private sector on budget transparency, open governance, and policy reforms, you not only support our cause: you are our partners in our Agenda for Prosperity. Now, more than ever, we understand that true leadership is not defined by the position you hold but by your ability to empower people toward a shared goal of collaboration and good governance.
Fiscal Transparency
As the Chair of the Philippine Open Government Partnership (PH-OGP), the Department of Budget (DBM) has been keen on being an example of transparency and accountability. Our budget documents are uploaded as close to real-time as possible on our website and even laymanized to make this more accessible to the general public.
This is why today, the Philippines is the most fiscally transparent country not just in Southeast Asia but in the entire Asia based on the latest Open Budget Survey (OBS) conducted by the International Budget Partnership—the only independent and fact-based international survey on open budgets—which recognized our timely and comprehensive publication of key budget documents, including pre-budget statement, proposed and enacted budgets, in-year and mid-year reports, and the People’s Budget series.
FY 2025 National Budget
Our commitment also stems from the understanding that having this information is crucial for the business sector as it allows you to identify growth opportunities, mitigate risks, and contribute to national development goals. With this in mind, let me discuss our priorities under the Fiscal Year 2025 National Budget.
The 2025 National Budget amounts to Php 6.326 trillion, equivalent to roughly 22.0 percent of GDP. It is higher by 9.7 percent compared to last year’s budget and will propel economic and social transformation by prioritizing programs and projects aligned with the Philippine Development Plan (PDP) 2023-2028.
The Social Services sector—which includes education, health, and social protection—received the highest budget allocation, with Php 2.030 trillion, or 32.1 percent of the total national budget.
As mandated by the Philippine Constitution, education remains our top priority, with an allocation of Php 1.041 trillion or 16.5 percent of the national budget. The amount is well within the 15 to 20 percent range set by the UNESCO 2030 Education Framework for Action for education expenditures. We will also promote quality healthcare with some Php 274.4 billion and strengthen social protection with Php 283.7 billion.
Infrastructure Development
Meanwhile, the Economic Services sector received the second highest allocation, with Php 1.968 trillion, or 31.1 percent of the national budget. This allotment will also fund the Agriculture and Agrarian Reform sector with Php 247.79 billion to support the administration’s vision of making agriculture the primary source of our food security, although the bulk of the budget for the Economic sector will go to Infrastructure development, which also remains our top priority, that is within 5.0 to 6.0 percent of GDP allocated annually for infrastructure spending.
For this year, some Php 1.644 trillion or 5.7 percent of the GDP will support the Build-Better-More Infrastructure Program, which will drive the development of road networks, bridges, railways, and other critical transport systems that will facilitate connectivity and economic activity across the country.
We will also build social infrastructure, such as school buildings, hospitals and health centers, water supply, and irrigation systems, to help boost inclusive economic growth.
Over the medium term, we will build 186 infrastructure flagship projects (IFPs) with estimated high returns on investments and sizable socioeconomic impact.
Public-Private Partnerships
To fund these critical infrastructure projects, we are leveraging innovative financing mechanisms, including strategic co-investments with the private sector through Public-Private Partnerships or PPPs.
And I am happy to share that private sector participation is now made faster and easier with the new PPP Code.
In fact, we have successfully awarded five (5) PPP airport projects in 2024, including the country’s main international airport—the Ninoy Aquino International Airport—and airports in Laguindingan, Dumaguete, Siargao, and Bohol.
Moreover, we are developing the Luzon Economic Corridor—a transformative hub for commerce, industry, and logistics. This will help drive regional development and fuel economic growth.
Climate Change Expenditures
While all these point to a promising and thriving economy, we also recognize the importance of taking the green path toward a future-proof and sustainable economy.
Hence, our climate change expenditures for FY 2025 will more than double to Php 1.156 trillion from Php 457.4 billion in 2024, the highest increase since we started tracking our climate expenditures since 2015. Among our top priorities will be investing in sustainable energy and climate-smart industries and services, which will substantially increase by over 2,000 percent as we build the foundations of a sustainable economy.
Digital Transformation
To position the Philippines as a prime investment destination, we are developing not just public infrastructure but also digital infrastructure. Hence, we have allocated Php 68.9 billion to support the government’s digital transformation.
As reflected in the highest allocations of our national budget, we remain steadfast in our commitment to developing and protecting the capabilities of individuals and families, transforming production sectors to generate more quality jobs and produce competitive products, and fostering an enabling environment for inclusive growth.
New Government Procurement Act
To truly achieve our Agenda for Prosperity, the government introduced game-changing reforms, including the New Government Procurement Act (NGPA).
As we all know, public procurement is one of the governance aspects most prone to corruption, not just in the Philippines but across the globe. So, even before joining the Department of Budget and Management (DBM), I knew how important it was to update our 20-year-old Government Procurement Reform Act. A World Bank report even states that better procurement strategies and policies could save 26 to 29 percent of a government’s total procurement spending.
I am honored to share that the NGPA signed by President Ferdinand R. Marcos Jr. in July 2024 is now hailed as the biggest anti-corruption measure in the country’s recent history. And I am happy to share that the Implementing Rules and Regulations (IRR) of the NGPA have already been approved just yesterday!
Through the NGPA, we have launched an electronic Marketplace—an online platform where agencies may directly procure supplies and equipment from competent and reputable suppliers.
In the true spirit of Open Government, we have likewise introduced open contracting; hence, data and documents will be disclosed at all stages of procurement, from planning to contract implementation.
Not only that, we will also introduce a participatory procurement process where the public can serve as observers during procurement proceedings.
We will also level the playing field by providing equal opportunities to our MSMEs, especially social enterprises and women-led businesses, to participate in procurement activities.
Open Governance
The business sector has always been a vital part of Open Government and is an indispensable partner in advancing transparent, accountable, and participatory governance worldwide. In the Philippines, MBC is actively building private sector support for the passage of the Freedom of Information (FOI) Law and local FOI ordinances.
These are precisely what we need to expedite the passage and implementation of our reforms. After all, the public and private sectors may operate in different ways, but we share the same goal: to create more and better jobs, accelerate economic growth, and improve the lives of Filipinos.
So, let me share with you the Government's accomplishments and initiatives rooted in the principles of Open Government Partnership (OGP).
First, I am proud to share that for the first time, under the PBBM Administration, we have institutionalized the PH-OGP through Executive Order No. 31, s. 2023. This means that the Open Government values of transparency, accountability, citizen participation, and digitalization are now embedded in government programs and policies.
As I mentioned earlier, we are now the most fiscally transparent country in the whole of Asia. In line with this, the DBM has been recognized by the Presidential Communications Office as a Champion of Information Integrity for our efforts to combat misinformation, disinformation, and fake news through our proactive publication on various platforms.
We are also strengthening public participation in the budget process, ensuring that citizens have a meaningful role in shaping policies and driving the nation’s progress. In October 2023, we launched the OGPinas! Nationwide Advocacy Campaign, in collaboration with the Department of the Interior and Local Government (DILG) and the Philippine Information Agency (PIA). To date, we have already engaged more than 4,000 Filipinos nationwide, involving them in our open government initiatives.
We are also giving life to OGP through participatory budgeting. In February, we launched the Support and Assistance Fund to Participatory Budgeting in collaboration with the DILG. Through this, 75 municipalities will have access to safely managed and resilient water supply and sanitation services and climate-smart evacuation centers. And what is so special about this program is that the municipalities will be identified with the help of Civil Society Organizations, reflecting our commitment to remaining the number one country in Southeast Asia in terms of public participation.
Through these reforms, we have been globally recognized as a leader in open governance, which has allowed us a seat in the OGP Global Steering Committee and given us an opportunity to host this Asia and the Pacific Regional Meeting, which we hope will be the most dynamic, fruitful, insightful, and memorable OGP Regional Summit!
Closing
But as we all know, our journey in advancing good and open governance can only continue to succeed through a collaborative, whole-of-society approach.
So let us work together to foster a Bagong Pilipinas that is open to collaboration, where the private sector plays a pivotal role in providing quality jobs, improving our economy, and achieving our Agenda for Prosperity. May our dialogue today pave the way for a more transparent, accountable, and inclusive government that we all aspire for.
Thank you again to MBC. Mabuhay ang OGP!
Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.
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