To the Asian Institute of Management (AIM), headed by Dr. Jikyeong Kang;
The Bangsamoro Parliament members and Committee on Accounts Chairperson Khalid M. Hadji Abdullah;
And to all the participants of this program, members of the academe, ladies and gentlemen:
Good morning!
Assalamu alaikum wa Raḥmatullahi wa Barakatuh.
First, I would like to express my heartfelt gratitude to AIM’s School of Executive Education and Lifelong Learning (SEELL) for developing this capacity-building program on financial governance and budget formulation. This event attests to your commitment not only to empowering our public servants in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) but also to driving our nation’s inclusive development.
This is especially meaningful to me as a daughter of Mindanao, whose dream is to see a BARMM that is thriving and a Mindanao that shines as a land of promise.
That is why I have been working very hard not only as Budget Secretary but also as Co-Chair of the Intergovernmental Relations Body or IGRB which was created to strengthen the BARMM’s institutions and support its complete transition to autonomy.
I am proud to report that we are now reaping the positive outcomes of our sustained coordination and strong collaboration.
Some of our most recent developments are detailed in the third IGRB progress report, which we presented and turned over to President Ferdinand R. Marcos Jr. last July 2024, just in time for the sixth anniversary of the signing of the Bangsamoro Organic Law.
To name a few, we have activated and operationalized all seven IGR mechanisms, which will provide platforms for strengthened partnership between BARMM and the national government and shall serve as the basis for all laws and policies enacted by the Bangsamoro Transition Authority (BTA) Parliament.
One of these mechanisms is the Intergovernmental Fiscal Policy Board, which has approved the guidelines on Official Development Assistance (ODA) loans for BARMM, authorizing the region to contract loans, in cash or in kind, from foreign governments and multilateral institutions or organizations. We view this milestone as a vital step towards making BARMM an investment destination like the rest of the Philippines.
In December, we completed the IGRB Manual of Operations, just four months after PBBM’s instruction to expedite its finalization. This document further guides the region’s socioeconomic transformation and the continued implementation of the Bangsamoro Organic Law during the transition period and beyond.
Alhamdulillah for these accomplishments—a testament to our enduring commitment to peace and development, which inspires us to work even harder for our people!
In line with this, I commend the Bangsamoro Parliament members present here today for participating in this three-day program, demonstrating your dedication to enacting a resilient and inclusive budget for BARMM.
As Budget and Management Secretary, it is my honor to share with you the guiding principles behind the reforms that we have been implementing to uphold a National Budget that truly fulfils the needs and aspirations of the Filipino people.
First, at the DBM, we ensure that every peso is spent for its intended purpose and for the benefit of the people. Even if there are people who are constantly trying to cast doubt on the government, I assure you that at the DBM, we are simply focused on our work and our mission to serve the people. I am very proud of our dedicated DBM officials and staff—we have here Undersecretary Margaux Salcedo whom you also know—they are the true public servants.
As a concrete example, when I started as Budget Secretary, I was met with calls by Congress to abolish the Procurement Service of the DBM, which they were blaming for corruption in government. My response to that was to say no to abolition because we need a good procurement system. Instead, I initiated a procurement reform.
Since public procurement accounts for an average of 13 to 20 percent of every country’s GDP, procurement is necessary although it has also been prone to corruption.
So the DBM, with our Procurement Service and our Government Procurement Policy Board, initiated the crafting of amendments to the decades-old Government Procurement Reform Act.
I am happy to share that in less than two years, because of our hardworking teams and through our close collaboration with Congress, this was signed into law in July of last year—a DBM legacy under this Administration.
This has been hailed as the largest anti-corruption measure in the country’s recent history. Among its many anti-corruption mechanisms, it prevents conflicts of interest through the mandatory declaration of Beneficial Ownership Information, increases efficiency through an accessible eMarketplace or a digital app similar to Lazada and Shopee where you can just add to cart, and streamlines processes using Standard Procurement Forms, all of which enhance public service delivery.
Before, we all go through competitive bidding. But now, we introduced a lot of new mechanisms to make procurement work better. So maybe, through the SEELL of AIM, you can also offer a Procurement course, together with the PFM courses that we offer in DBM.
Second, at the DBM, we ensure that the way we manage our public funds is attuned to the changing times.
With this in mind, we developed the Public Financial Management (PFM) Reforms Roadmap 2024-2028—the country’s blueprint for modernizing and harmonizing our PFM processes. In line with Executive Order No. 29, s. 2023, this roadmap will expedite the adoption of the Integrated Financial Management Information System (IFMIS), digitalizing all government agencies.
A crucial part of this is the Budget and Treasury Management System or what we call BTMS, which was launched last December 2024. It connects existing separate systems into a central, real-time monitoring hub for government transactions.
What happens now is that agencies submit their quarterly report manually, and sometimes, they don’t meet the deadline. It is difficult for us to do policy work if we don’t have the data. So with this, once all the agencies are connected, all of us, not just the DBM, can look at the website and see the balances, transactions, saan napunta ang pera, at sino ang gumamit ng pera ng ating gobyerno.
We also revived Project DIME, or the Digital Information for Monitoring and Evaluation Project, which will also help curb corruption as it utilizes satellite and drone technology to help verify the progress of big-ticket infrastructure projects, particularly in remote areas; prevent misallocation of funds; and ensure that every peso contributes to real impact.
What’s also nice with this system is that the public can also register through this portal and send their comments. We need the active participation of the general public, including the CSOs and NGOs, to help us monitor the projects.
Third, at the DBM we are committed to having a budget that is transparent and accessible to the public.
In fact, we are currently number one not just in Southeast Asia but in the entire Asia in budget transparency based on the latest Open Budget Survey. We are also number one in Southeast Asia for public participation.
This is due to our timely and comprehensive publication of all key budget documents. We also strive to make the budget more understandable by the public through our People’s Budget series.
On this note, I would also like to commend the Bangsamoro Government for publishing its Bangsamoro Budget Magazine, known as Al Mizaniyyah, which aligns with our commitment to strengthening budget openness and citizen engagement.
Finally, at the DBM, we make it a point to listen—to the people and to all the experts.
Just last June, we launched the Public Expenditure and Financial Accountability (PEFA) Assessment Reports, which evaluated the status of our PFM system.
I am proud to share that for the first time, we also conducted assessments not only on public financial management but also on the budget’s gender-responsiveness, climate- responsiveness, and even child-responsiveness, and disaster resilience.
The data showed that indeed, our country has a robust PFM system. But also, we remain committed to utilizing the findings to further transform our PFM landscape into one that is more relevant and accountable to every Filipino.
Indeed, we have made significant progress in ensuring that the budgets we enact every year are both resilient and inclusive.
For FY 2025, we have allocated a total of Php 94.4 billion to support peace and development in BARMM. This includes the Php 83.4 billion Annual Block Grant, which is the share of the Bangsamoro government in the national internal revenue tax collections, supporting the region in exercising its powers and functions.
This amount also provides for the Special Development Fund, amounting to Php 5.0 billion, which supports the rebuilding, rehabilitation, and development of conflict-affected communities.
Meanwhile, some Php 5.9 billion is appropriated for the shares of BARMM in taxes, fees, and charges under Section 10, Article XII of R. A. No. 11054 or the Bangsamoro Organic Law.
As you can see, BARMM is a priority in our Agenda for Prosperity.
And I hope that the lessons I shared about our PFM and governance reforms inspire the Bangsamoro Government to raise the bar and design a strategic budget for BARMM.
Remember, in Bagong Pilipinas, our budget is more than just a financial plan—it is a powerful tool for transformation. So, over the next few days, I encourage you to fully engage in the learning sessions that will help shape the future of the region.
From organizing an effective PFM system to exploring leadership calls and prototypes for change, this program will equip you with the knowledge and skills to craft a budget that reflects the aspirations of a united, self-governing, and progressive Bangsamoro.
Rest assured that the National Government, PBBM, and the DBM stand with you on this journey towards resilience and inclusivity. So, let us continue to build on our progress, fulfill our promises, and ensure that our actions lead to lasting, meaningful change for the Bangsamoro and the entire nation.
Mabuhay ang Bagong BARMM at ang Bagong Pilipinas!
Wabillahi Tawfiq Wal Hidaya, Wasalamu alaikum wa rahmatullahi wa Barakatuhu.
END
References:
[2] https://www.dbm.gov.ph/wp-content/uploads/GAA/GAA2025/VolumeIB/ALGU/F.pdf
