Governance and Fiscal Management:

The Philippine Context

THELMA C. MANUEL
OIC-Director, Governance Staff
National Economic and Development Authority
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Subregional Policy Dialogue on Economic and Social Survey of Asia and the Pacific 2017:
Governance and Fiscal Management

“Good governance, that is, having a government that is

able to make and enforce rules and to deliver services
efficiently and effectively, is critical to achieving the
2030 Agenda for Sustainable Development.”

ECONOMIC AND SOCIAL SURVEY OF ASIA AND THE PACIFIC 2017

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Survey 2017: Analytical Framework of improving
governance for better fiscal management

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GOOD GOVERNANCE REFORMS THAT HAVE
CONTRIBUTED IN THE PHILIPPINES’
ECONOMIC DEVELOPMENT
(2010-2016)

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BOTTOM-UP to open the audit processes to
citizens and CSOs intended to
to improve transparency
and citizen’s

BUDGETING PROGRAM improve effectiveness and

efficiency in the use of public
empowerment through
greater access to
information. The Portal
resources

to promote participatory

OPEN DATA PORTAL

was launched as the

CITIZENS PARTICIPATORY
AUDIT (CPA)
central platform for the
publication or disclosure of
planning and budgeting government data.

processes at the national

and local level through
the genuine involvement
of grassroots
organizations and
communities

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 to promote participatory
planning and budgeting
CITIZENS to improve transparency
and citizen’s empowerment
processes at the national through greater access to
and local level through
the genuine involvement
PARTICIPATORY AUDIT information. The Portal
was launched as the
BUDGETING PROGRAM
BOTTOM-UP

central platform for the

OPEN DATA PORTAL

of grassroots
organizations and
communities to open the audit processes publication or disclosure of
government data.

to citizens and CSOs;

intended to improve
effectiveness and efficiency
in the use of public
resources

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 to promote participatory
planning and budgeting
processes at the national
to open the audit
processes to citizens OPEN DATA PORTAL
and CSOs intended to
to improve transparency
and local level through
improve effectiveness
BOTTOM-UP
BUDGETING PROGRAM

the genuine involvement

and efficiency in the

PARTICIPATORY AUDIT
CITIZENS
of grassroots
and citizen’s empowerment
use of public
organizations and
resources
communities

through greater access to

information. The Portal was
launched as the central
platform for the publication
or disclosure of government
data.

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Coverage of Report Card The Governance Commission
for GOCCs (GCG) was created in
The Inter-Agency Anti-
Corruption Coordinating
Survey, a critical 2012 to fight corruption in
government owned and
Council was established to
institutionalize transparent,
component of Anti-Red controlled corporations and
improve the quality of
management.
accountable, and
participatory governance.

Tape Act of 2007, was

expanded from 50
frontline agencies in
2010 to 1,109 agencies in
2016.

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Coverage of Report Card
Survey, a critical
The Governance The Inter-Agency Anti-
Corruption Coordinating
component of Anti-Red
Tape Act of 2007, was
Commission for GOCCs Council was established to
institutionalize transparent,
expanded from 50
frontline agencies in 2010 (GCG) was created in 2012 accountable, and
participatory governance.
to 1,109 agencies in 2016.
to fight corruption in
government owned and
controlled corporations and
improve the quality of
management.

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Coverage of Report
Card Survey, a critical
The Governance The Inter-Agency Anti-
Corruption Coordinating
Commission for
component of Anti- GOCCs (GCG) was
Red Tape Act of 2007, created in 2012 to

Council was established to

was expanded from 50 fight corruption in
frontline agencies in government owned
2010 to 1,109 and controlled
agencies in 2016. corporations and
improve the quality
institutionalize transparent,
of management.
accountable, and participatory
governance.

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Local Government Units (LGUs) garnered 74 percent compliance with
respect to public financial management (PFM) standards in the 1st
quarter of 2016, surpassing the End-Of-Plan target of 65 percent.

Incentive-based initiatives, such as the Seal of Good Local Governance and

the Performance Challenge Fund, proved very effective in positively
influencing the performance of LGUs

Citizen feedback on the kind and quality of services rendered by the city
and municipal governments were gathered through the Citizens’
Satisfaction Index System in 163 LGUs, exceeding the target of 153.

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SIGNIFICANT LEGISLATIVE MEASURES
• GOCC Governance Act of 2011 – aims to curb excesses in the sector
and to ensure that GOCCs are managed in a transparent,
responsible, and accountable manner; and with the utmost degree
of professionalism and effectiveness

• Ex Parte Application of Court Order – grants the Anti-Money

Laundering Council authority to undertake ex parte inquiry into
suspicious financial transactions after securing court approval
without the need to inform the suspects

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SIGNIFICANT LEGISLATIVE MEASURES
• Amended the Anti-Money Laundering Act– includes the list of
covered institutions and transactions

• Terrorist Financing Suspension Act of 2012 – defines the crime of

terrorism financing

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PHILIPPINES’ STRATEGIES TO IMPROVE
GOVERNANCE FOR BETTER FISCAL
MANAGEMENT

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 PHILIPPINE DEVELOPMENT PLAN 2017-2022 OVERALL
STRATEGIC FRAMEWORK
MATATAG, MAGINHAWA AT PANATAG NA BUHAY
2040

INCLUSIVE GROWTH, HIGH-TRUST AND RESILIENT SOCIETY, GLOBALLY-COMPETITIVE KNOWLEDGE ECONOMY

2022

MALASAKIT PAGBABAGO PATULOY NA PAG-UNLAD

Technology
Clean and efficient governance Expansion Increase in access Innovation
adoption

Administration of justice STRATEGIC TRADE AND FISCAL POLICY, MACROECONOMIC STABILITY, COMPETITION

Philippine culture and values Human capital Vulnerability Demographic dividend

development reduction

Strategic infrastructure Safety and Ecological integrity,

Peace and security development resilience clean environment
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Governance strategies to improve fiscal management

Sustain existing participatory governance initiatives

such as the Citizen Participatory Audit

Enhance the income and asset declaration system of public

officials by improving the system of filing and analyzing
Statements of Assets, Liabilities, and Net Worth (SALN)

Complete the Budget and Treasury Management

System and the Single Treasury Account

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Governance strategies to improve fiscal management

Intensify LGU fiscal monitoring and performance

evaluation through standardized reporting tools
and metrics

Formulate and implement expenditure management reforms

that will improve government agency budget utilization and
address underspending (i.e. streamlining the release of
funds, development of integrated and user-friendly financial
management systems)

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Governance strategies to improve fiscal management
Legislative Measures:

Budget Comprehensive
Reform bill Tax Reform bill

E-Government Freedom of
bill Information bill

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Governance and Fiscal
Management:
The Philippine Context

THELMA C. MANUEL
OIC-Director, Governance Staff
National Economic and Development
Authority
20