Philippines Development Forum SUSTAINING FISCAL PROGRESS

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Philippines Development Forum(SUSTAINING FISCAL
PROGRESS)

• Increasing High Quality Spending

UNDERSECRETARY LAURA B. PASCUA Department of
Budget and Management 08 March 2007
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Increasing High Quality Spending

• Cascading and Embedding MTEF and OPIF
• Widening the Implementation of the
  Rationalization Program
• Introducing Performance Contracts to GOCCs
• Widening the Advocacy of the Procurement Program
• Passage of the Govt Classification and
  Compensation Act

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A. Cascading and Embedding Medium-Term
Expenditure Framework (MTEF) and Organizational
Performance Indicator Framework (OPIF)

• Adding more depth to the Paper on Budget Strategy
  for presentation to Cabinet
• Adoption of improved guidelines and templates for
  Forward Estimates (FEs)
• Briefing of spending agencies on MTEF and FEs
• Enhancing harmonization of planning and budgeting
• Cascading of OPIF to bureaus and attached
  agencies of the 20 pilot departments and
  introduction to OEOs
• Streamlining of fund releases to support agency
  operations targets
• Strengthening of internal control systems

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B. Widening the Implementation of Rationalization
Program (EO 366 dated 04 October 2004)

• 79 government entities or 71 (19 Depts, 28
  OEOs/Other Agencies, 33 GOCCs) submitted their
  Plans to DBM
• 12 Plans already approved OP, OVP, CESB, CSC,
  HUDCC, PCSDS, Philracom, LWUA, NHMFC, PDA, PIDS,
  TLRC
• Generated P 266M PS savings and abolished 2,065
  positions or 34.7 decline (from 5,950 to 3,885
  positions) in 12 agencies

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B. Widening the Implementation of Rationalization
Program (EO 366 dated 04 October 2004)

• Observed Benefits
• Strengthening of key functions
• Modernization of agency administrative support
• Implement devolution under Local Government Code
• Issues in Program Implementation
• Underestimation of time period needed by agencies
  to submit Plans to DBM
• Changes in leadership lead to Plan submission
  extensions
• Numerous requests on the filling of
  positions/hiring of personnel
• Underestimation of time for DBM to evaluate Plans

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B. Widening the Implementation of Rationalization
Program (EO 366 dated 04 October 2004)

• Prioritization in evaluation/approval of
  submitted Plans consider multi year phasing for
  select agencies
• Provide assistance to Depts/Agencies/ GOCCs yet
  to submit Plans
• Implementation of impact mitigation strategies
• Show of political will in Program implementation

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C. Institute performance contracting for GOCCs to
improve financial viability

• Effort to be started/piloted in National Food
  Authority
• Introduction of performance of targets to be
  pursued in two (2) more GOCCs in 2007

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D. Widening the Advocacy for Procurement Reforms

• Institutionalization of Procurement Reform
  Program to different levels of govt
• Improvement and harmonization of GOP and devt
  partners procurement guidelines
• Enhancement of Philippine Government-Electronic
  Procurement System
• Development of Procurement Monitoring System
• Implementation of professionalization program for
  procurement personnel in govt
• Implementation of Strategic Communication Plan
  for Procurement

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E. Passage of Govt. Compensation and
Classification Act(GCCA)

• GCA advocates a new compensation system anchored
  on the following principles
• Internal Equity
• External Equity
• Performance-based
• Easy to administer
• Bill will be refiled in both Houses of Congress
  in July 2007
• Budget required for full implementation (for
  civilian personnel)-P80 billion for
  implementation in 5 years

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THANK YOU !
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Increasing High Quality Spending

• D. Enhancing DBM IT Systems for Greater
  Transparency
• Operationalization of Govt Disbursement
  Reporting System
• Development of eLAMP System for tracking of GOP
  commitments under Policy Development Loan
• Formulation of BPMS Systems Audit and Enhancement
  Plan for MTEF and OPIF
• Conduct of study of interoperability of eBudget
  System with other oversight systems