---

Distinguished representatives of civil society; 

Partners from the business community;  

Colleagues in government and fellow reformers;  

A pleasant day to everyone.  

Assalamu alaikum wa Raḥmatullahi wa Barakatuh.  

It is my great honor to welcome you to our pioneer dialogue between representatives from the Development Budget Coordination Committee or DBCC and Civil Society Organizations (CSOs). Titled “Macroeconomic Insights for National Action: An Economic Dialogue with Civil Society”, this is a historic milestone in our journey toward a more open and inclusive governance. 

Just to introduce why we are doing this, if you remember, we had the very first Asia and the Pacific Regional Meeting held last February. It was attended by a thousand participants, and we had more than 50 side events, together with the private sector and business groups.  

One of the first meetings that I attended was the one with the Makati Business Club (MBC), and it was discussed there that it is their dream that when we discuss the macroeconomic targets of the national government, especially in the DBCC, if it’s possible to include the civil society and other private organizations to also take part in it. During that meeting, I said yes. So, this was a commitment at that time. Now, here we are, and we thank you for attending.  

You know, the knowledge in terms of the macroeconomic prospects and targets of the national government, while we have the tools and all the best minds here, I think some areas may be left behind. There are some areas that need your input. So, that’s why we have you here. Hopefully, this will be a lively discussion today because we have two hours to discuss. I hope the numbers that we’re going to show you will meet your expectations.  

For the first time, the country’s Economic Team is engaging civil society organizations in a dedicated roundtable to discuss our medium-term macroeconomic and fiscal priorities. And we are proud to hold this historic event during the #OpenGovWeek2025, a fitting moment to reaffirm our shared commitment to transparency, accountability, and citizen participation.  

Before we officially begin, allow me to emphasize why it matters that all of us here are part of this conversation, particularly in relation to the work of the DBCC. 

As you may know, this inter-agency committee, chaired by yours truly as Budget Secretary and now co-chaired by the Secretary of the Department of Economy, Planning, and Development or DEPDev, plays a critical role in setting the macroeconomic assumptions and fiscal targets that guide the preparation of our national budget.   

This means that whether we expand access to education, improve public health systems, accelerate infrastructure development, or invest in climate resilience, all of this depends on the fiscal space and the limitations determined by the DBCC’s targets.  

In this regard, while in the past, CSO consultations were only done at the Regional Development Council (RDC) level and with implementing agencies, as PH-OGP Chair, I believe that there is great value in employing citizen engagement at this time of the budget process, before the budget hearings in Congress. We welcome the voice that civil society brings and welcome your insights for these technical but crucial conversations. 

Sustaining the Country’s  Strong Macroeconomic Fundamentals  

Let me now share some updates on the broader macroeconomic and fiscal landscape of the country. 

I want to emphasize at the onset that the Philippine economy is doing well. We expanded, albeit moderately, by 5.4 percent in the first quarter of 2025, thanks to strong domestic demand and accelerated government spending.  

Inflation, which the government is usually unfairly blamed for when it is in fact a pressing global issue, has been impressively managed by our economic managers through the leadership also of Bangko Sentral ng Pilipinas (BSP). As proof, you will see that for April 2025, it settled at 1.4 percent, not only well within our target range but notably the lowest inflation rate recorded since November 2019.  

Employment, on the other hand, also remains robust, with a rate of 96.1 percent. This translates to over 48 million Filipinos in the workforce. With a median age of just 25 years old, we have the youngest, most dynamic, and highly skilled workforce—not just in the ASEAN but in the world.   

On the fiscal front, the truth is that we have been exercising exemplary fiscal discipline, so much so that we earned an upgrade from S&P Global last November 2024, revising the Philippines’ credit outlook from “stable” to “positive.” And this is just one among a series of high credit rating affirmations last year.  

This is good news because it means we are viewed internationally as an economy that is performing well. And because of this, creditors allow us to borrow at even lower costs, which translates to more meaningful investments in key sectors. This is also why we are targeting to achieve an “A” credit rating, and as long as we continue to work hard and together, I am confident that in our Road to “A,” the destination is getting near.  

I am also proud to report, in case you haven’t heard, that the Philippines was recently removed from the grey list of the Financial Action Task Force (FATF)—an achievement that will further boost investor confidence and increase foreign direct investments.  

So, as you can see, our economy has been improving. And it will keep improving as we continue to work hard towards much-needed reforms. Let me cite some of these reforms. 

Digitalization Reforms  

First, digitalization. Foremost, we are determined to fully digitalize and harmonize our Public Financial Management (PFM) systems and policies, not just to improve government efficiency, but to strengthen the public’s right to know and participate. 

Central to this effort is the PFM Reforms Roadmap 2024 to 2028, our blueprint for the full digitalization of PFM processes through the adoption of the Integrated Financial Management Information System (IFMIS) across all government agencies. We turned over this Roadmap to our President in September and successfully launched it a month after with the help of the Asian Development Bank (ADB).  

Just recently—again with the support of ADB and our development partners—we brought together Technical Working Groups (TWG) and PFM Committee Task Teams from different agencies for a mid-term review of our progress. These discussions focused on 11 strategic focus areas, such as Planning and Budgeting Linkage, Cash Management, Public Asset Management, Capacity Development, Digital PFM, and Public Procurement, among others, along with new monitoring and reporting mechanisms to ensure that progress is both measurable and meaningful. 

Similarly, we have already launched the Budget and Treasury Management System, or BTMS, which connects existing separate systems into a central, real-time monitoring hub for government transactions.  

We are also reviving Project DIME, or the Digital Information for Monitoring and Evaluation Project, a game-changing initiative that utilizes existing technologies such as satellites, drones, and geotagging to compare fund utilization with actual project completion status. This empowers us to verify development on the ground, particularly in remote areas, and opens new channels for citizen engagement and feedback because it has a feedback mechanism as well. 

Just yesterday, during one of the sessions for the Open Gov Week, we took another meaningful step by signing a Memorandum of Understanding with UP-NOAH, or Nationwide Operational Assessment of Hazards for Project DIME. Through this partnership, we will integrate disaster risk reduction and climate resilience features into our monitoring tools, ensuring that public investments are not only effective but also built to withstand natural hazards. 

Program Convergence Budgeting 

Meanwhile, to address the overlap and redundancy of government programs, we are strengthening our efforts on Program Convergence Budgeting (PCB). For those who might not be familiar, PCB enables government agencies to work together, ensuring consistency in program targets, beneficiaries, focus areas, implementation timelines, and resource requirements, guided by a unified Master Plan or roadmap. 

For the Proposed FY 2026 National Budget, we have identified 13 PCB programs—including a new one led by DBM: the PCB on PFM Systems. By continuously working closely with our partners, we will ensure that all PFM systems and policies are digitalized and harmonized, guided by the PFM Reforms Roadmap.  

Not only that, we also established a Program Convergence Budgeting Steering Committee (PCB-SC)—chaired by DEPDev Secretary Arsenio M. Balisacan and co-chaired by yours truly—as the oversight body that will ensure the coordinated and synergized implementation of all PCB programs.  

Climate Resilience Reforms  

Towards sustainability, we are taking bold steps to ensure that our national budget reflects the growing need for climate action. Hence, our climate change expenditures more than doubled to Php 1.156 trillion this year—the largest increase since we began tracking these expenditures in 2015. 

And in line with President Ferdinand R. Marcos Jr.'s vision for green governance, the DBM is proud to be the first national agency to create a Sustainability Committee and appoint a Chief Sustainability Officer, just last week, to ensure that we’re not just crafting green policies, but also running a green institution.  

Procurement Reforms   

But I am most proud of a reform that has been my advocacy since my first day as Budget Secretary: the New Government Procurement Act (NGPA)—now hailed as the biggest anti-corruption measure in the country’s recent history. This landmark legislation not only modernizes our procurement system but also institutionalizes the values of transparency, efficiency, and public accountability.  

Through this new law, we have established an electronic Marketplace or e-marketplace—a public sector version of Lazada and Shopee where agencies can “add to cart” and directly procure supplies and equipment from competent and reputable suppliers.  I am happy to share that in the first quarter alone, 86 motor vehicle orders worth approximately Php 80 million have already been processed, with 15 units delivered to agencies. We’re also expanding this to include cloud computing services and software licenses.  

To streamline transactions even further, we’ve issued guidelines for the nationwide rollout of the Government Purchase Card—an alternative payment solution for procuring goods and services that cuts red tape and speeds up procurement.  

To further solidify our commitment to delivering a world-class procurement system, just last month, we had the honor of hosting the East Asia and the Pacific International Public Procurement Conference, where we led the signing of the first-ever Statement of Cooperation on Public Procurement in the region, alongside our counterparts and the World Bank. 

In the true spirit of open government, we have likewise introduced open contracting, making procurement data and documents publicly available at every stage—from planning to bidding, up to contract implementation. 

Not only that, we have also introduced a participatory procurement process where the public can serve as observers during procurement proceedings. 

As Chairperson of the Philippine Open Government Partnership (PH-OGP), I am proud that our procurement reforms reflect the very spirit of open government. We are not just buying better— we are building a procurement system that people can trust, that delivers real value, and that invites civil society as an equal partner in reform. 

Open Governance Initiatives 

Finally, we have been working hard on ensuring fiscal transparency, and I am proud to share that for the first time since the founding of the OGP in 2011, it was under the PBBM Administration that the PH-OGP has been institutionalized— through Executive Order No. 31, s. 2023. This only proves that open government is not just a promise—it is now part of our national policy. And we thank our President for his commitment to having an open, transparent, and accountable government.  

This milestone reflects a broader transformation that is already underway. You may have not seen this in the news but in fact, the Philippines has been recognized by the International Budget Partnership as the most fiscally transparent country not just in Southeast Asia but in all of Asia, boosted by our timely and comprehensive publication of key budget documents that are open for public review and scrutiny.  

We’ve also seen significant progress in press freedom. In 2025, the Philippines climbed to its highest-ever ranking in the World Press Freedom Index, reaching the 116th spot—an 18-point jump from 2024. 

We hope to increase this ranking even more as we push for an enabling law that will truly uphold the people’s constitutional right to information, and as OGP Chair, I have been pushing to have an FOI Law passed. We hope that this bill will have some progress this year and in the coming new Congress. Insha Allah.    

That is why, since April 2025, the PH-OGP, in partnership with the Presidential Communications Office (PCO), has conducted a series of stakeholder consultations to chart the next steps for the Freedom of Information (FOI) Bill to be a legislative priority. Participants included representatives from your organizations—the civil society, the academe, and the business community. Together, let us make our call for the passage of the FOI Bill in the 20th Congress louder and clearer. 

Last February—some of you may recall because you were there—we proudly hosted the OGP Asia and the Pacific Regional Meeting, bringing together over 1,000 reformers from more than 40 countries to exchange ideas, share best practices, and reaffirm our shared mission of building an open government. This is where we heard a strong call from civil society for deeper collaboration with the country’s economic managers.  

I was there, I heard you, and so today, we are here. 

So, in closing, we are eager for this exchange of perspectives on our country’s macroeconomic and fiscal priorities. The insights and recommendations we gather today will be presented to the DBCC and other relevant bodies—a concrete step in creating a pathway toward a shared Agenda for Prosperity. 

In this Bagong Pilipinas where we are blessed to have a government that seeks to listen in order to better perform and deliver, from the bottom of my heart as both DBCC and OGP Chair, maraming maraming salamat po sa ating mga Partners in Prosperity.  

Thank you very much.  

Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhuh.  

 

END