Assalamu alaikum wa Raḥmatullahi wa Barakatuh.

I am pleased to share that our country launched the Public Expenditure and Financial Accountability (PEFA) Assessment Reports on June 10, 2025.

For those unfamiliar with this diagnostic tool, the PEFA program provides a framework for assessing and reporting on the strengths and weaknesses of public financial management (PFM), using quantitative indicators to measure performance.

In adherence to President Ferdinand R. Marcos Jr.'s Executive Order No. 29, dated June 2023, directing us, in the PFM Committee, to digitalize and streamline PFM processes through the full adoption of the Integrated Financial Management Information System, and with support from development partners, including the 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, we conducted the PEFA assessment from October 2024 to April 2025, covering the period from 2021 to Oct. 31, 2024, to gain a comprehensive and objective evaluation of the country’s PFM systems and processes vis-à-vis international standards and best practices.

Through its multi-framework and multi-stakeholder approach, the assessment resulted in five reports, with the primary PEFA assessment supplemented by a gender-, climate- and child-responsive PFM framework, and an assessment of disaster resilience and responsiveness. This provides a nearly 360-degree view of our PFM landscape to identify gaps and create a path toward meaningful progress.

The results of this assessment will serve as a critical input for the PFM Reforms Roadmap 2024-2028 midterm review and action planning for us to achieve the Philippine Development Plan 2023–2028, particularly in the areas of fiscal management, good governance, and bureaucratic efficiency.

I also concur with the joint statement of our development partners that one of the most significant outcomes of this exercise is fostering deeper collaboration and co-ownership across the government’s PFM community and among development partners, laying a strong foundation for continued joint action and collaboration.

The Basic PEFA Assessment measures the overall improvement of our PFM since the 2016 assessment. It is structured around seven pillars—the core functions of PFM — namely: Budget reliability; Transparency of public finances; Management of assets and liabilities; Policy-based fiscal strategy and budgeting; Predictability and control in budget execution; Accounting and reporting; and External scrutiny and audit. These pillars are assessed using 31 high-level indicators, providing a comprehensive overview of the performance and institutional soundness of a country's PFM system.

And I am proud to share that 20 out of 31 indicators in our main PEFA assessment were rated above the basic level and aligned with international good practices. Further, the PEFA Secretariat acknowledged the Philippines' significant progress in improving transparency and accountability in PFM.

Key findings highlighted notable improvements in budget reliability and transparency of public finances, with the PEFA Secretariat commending the Philippine government’s commitment. As PEFA Head Secretariat Srinivas Gurazada emphasized during the launch, “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.”

We received high praise for the quality and openness of our key budget documents, underscoring our efforts to make PFM more transparent, accountable, and citizen-friendly. By making key budget documents more accessible, 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. This reinforces the International Budget Partnership's recognition of our country as the most fiscally transparent country in Asia.

The PEFA Secretariat further highlighted 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 our government’s first-ever Medium-Term Fiscal Framework, 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, ultimately ensuring that government funds are spent where they are needed most.

Thus, I would like to extend my deepest appreciation to everyone who journeyed with us since the conceptualization of the 2024 PEFA Assessment.

Beyond budget, the PEFA Assessment Reports do not mark the conclusion of our journey, but the beginning of a new era for a brighter, stronger PFM system that truly serves the Filipino people. Guided by this assessment, I enjoin our partners and stakeholders to take part in this journey toward a sound, systematic, transparent, and accountable PFM in the country, for us to achieve the vision of a Bagong Pilipinas and fulfill our Agenda for Prosperity.