The Asian Development Bank (ADB) has backed the Philippine government’s updated roadmap to overhaul how public funds are planned, spent, and monitored, saying stronger public financial management (PFM) systems are key to improving public services, strengthening resilience, as well as guarding against corruption.

Launched at the ADB’s headquarters in Manila on Thursday, June 25, the Updated Public Financial Management (PFM) Reforms Roadmap 2024-2028 Midterm Review and Reform Action Plan outlines priorities, assigns agency responsibilities, as well as sets measurable targets for managing public resources. The reforms seek to channel more government funds toward health care, education, infrastructure, and social protection.

“The Philippines is taking the hard work of public financial reform head-on,” ADB president Masato Kanda said.

“By grounding reform in evidence, broad participation, and clear accountability, the government is showing how every peso can work harder for the Filipino people. The ADB is proud to support this leadership as the country turns an ambitious reform agenda into better services, stronger resilience, and improved lives,” he added.

The ADB, which has served as the lead development partner for the reforms of its host country since 2023, said the updated roadmap marks a shift from planning to implementation through stronger coordination among government agencies, clearly assigned responsibilities, adequate technical and financial resources, as well as data systems to monitor progress and address emerging risks.

The reform effort is led by the Philippines’ PFM Committee, composed of the Department of Budget and Management (DBM), the Department of Finance (DOF), and the Commission on Audit (COA).

Kanda said strong PFM has become increasingly important as governments navigate a more uncertain global environment.

“PFM is not just a technical exercise. It is the foundation for effective government. It determines whether limited resources reach the areas where they can have the greatest impact,” he said.

“PFM is also a frontline defense against corruption. The ADB maintains a zero-tolerance approach to corruption. We are working with our developing member countries (DMCs) to plug leaks in public finance and build robust systems. Stronger institutions, tighter controls, and clearer accountability help ensure that development finance delivers real impact for the people who need it most,” he added.

The reform process began in 2023 with a nationwide self-assessment involving more than 1,100 PFM practitioners, government officials, local government units (LGUs), civil society organizations (CSOs), and development partners. The PFM Committee approved the assessment in June 2024 before submitting it to President Ferdinand R. Marcos Jr. in September that year.

The government subsequently completed a public expenditure and financial accountability (PEFA) assessment in 2025, alongside reviews of how public spending addresses climate change, gender equality, disaster resilience, as well as children’s needs. The ADB said the findings identified strengths and remaining gaps, providing the basis for updating the roadmap as well as its accompanying action plan.

“What makes this moment truly significant is the shift we are seeing. We are leaving behind fragmented reform efforts in favor of a whole-of-government approach. We are turning individual projects into strong, functioning country systems,” Kanda said.

He added that the roadmap could also serve as “a practical model for governments across Asia and the Pacific, offering them a replicable path to reform.”

While the roadmap has now been formally launched, the ADB emphasized that successful implementation will depend on sustained leadership, adequate funding, clear accountability, and continued follow-through to translate the reforms into better public services as well as stronger public trust.

“The priority now is clear: turn this plan into action and ensure those actions deliver real results,” Kanda said.