1. 1 st PAGBA Quarterly Meeting and Seminar Public Financial Management Reforms Towards Inclusive Development Secretary Florencio B. Abad Department of Budget and Management

2. Objectives of Effective PEM FISCAL DISCIPLINE ALLOCATIVE EFFICIENCY OPERATIONAL EFFICIENCY “SPENDING WITHIN MEANS” “SPENDING WITHIN MEANS” “SPENDING ON THE RIGHT PRIORITIES” “SPENDING W/ MEASURABLE RESULTS” “SPENDING W/ MEASURABLE RESULTS” PUBLIC EXPENDITURE MANAGEMENT Schick (1998) and author’s interpretations

3. 2010-2012: Restoring Public Trust

4. Opening Salvo: Zero-Based Budgeting “Ang anumang pagbabago ay magmumula sa pagsiguro natin na magwawakas na ang pagiging maluho at pagwawaldas.”

5. Commitment to Fiscal Consolidation

6. Tighter Alignment with Priorities 2010: Zero-Based Budgeting 2011: Alignment of Budget with 5 Social Contract KRAs –Transparent, Accountable & Participatory Governance –Poverty Reduction and Empowerment of the Poor –Rapid, Inclusive and Sustained Economic Growth –Just and Lasting Peace and Rule of Law –Integrity of the Environment and Climate Change Adaptation and Mitigation 2012: Program Budgeting Approach

7. Delivering the Dividends of Reform Increased Share of Social, Econ Services Source of Basic Data: DBM

8. Delivering the Dividends of Reform Meaningful Social Services Pantawid Pamilyang Pilipino –Expansion to cover 4.6M by 2015 –Supplants dependency ties w/ traditional patrons Closing the Gaps in Human Investments –Supporting K-12 Basic Education Reform by closing teacher, classroom, textbook gap –Supporting Universal Healthcare by covering Q1&Q2 in NHIP & closing rural health unit gap

9. Faster Budget Execution 2010: Disaggregation of Lump Sum Funds 2011: Procurement Innovations (Early Procurement & Expansion of PhilGEPS) 2012: Account Management Teams 2013: One-Year Validity of Appropriations

10. Performance Budgeting 2011: Review of Organizational Performance Indicator Framework 2011: Started Work on Results-Based Performance Management System 2012: Performance-Based Incentive System and Performance-Based Bonuses

11. Fiscal Transparency and Participation 2010: Government-CSO Principles of Constructive Engagement 2011: Mandatory Disclosure Provisions (2012: Transparency Seal) 2011: NGA-CSO Budget Partnerships 2011: Use of Technology for Transparency (PDAF webpage, BudgetNgBayan.Com, etc.) 2012: Bottom-Up Budgeting

12. Leveraging Technology Government Integrated Financial Management Information System Philippine Government Electronic Procurement System Government Manpower Information System and National Payroll System Cashless Purchase Cards

13. PH: “Newest Aspiring Tiger” Inquirer Front Page

14. Challenge for 2013-2016: Inclusive Development

15. Wealth & Power in the Hands of a Few

16. PFM Reform in Support of Inclusive Growth Fiscal Discipline: sustain trajectory of fiscal consolidation, 2% deficit-to-GDP by 2013 Allocative Efficiency: put horse before cart through Budget Priority Framework Operational Efficiency: new face of budget: –Budget as Release Document –Performance-Informed Budget Deeper Fiscal Transparency & Participation

17. PAGBA as Key Advocate of Reform

18. 1 st PAGBA Quarterly Meeting and Seminar Public Financial Management Reforms Towards Inclusive Development Secretary Florencio B. Abad Department of Budget and Management