MANILA, Dec. 11 (Xinhua) -- The Asian Development Bank (ADB) on Wednesday approved a 500-million-U.S. dollar policy-based loan to help the Philippines pursue its public financial management (PFM) reform agenda and ensure quality public services for the Filipino people.
The Public Financial Management Reform Program (Subprogram 1) promises to improve national budget frameworks, empower local governments, and establish a PFM system in the Bangsamoro Autonomous Region in Muslim Mindanao in the southern Philippines.
The ADB said the new program promotes the fair and practical devolution of public services under the archipelago's Mandanas ruling and fosters local investments in climate resilience and disaster preparedness.
The Mandanas ruling mandates that all national taxes and other taxes and fees collected by the national government be considered in computing revenue allotments to local government units.
The program also vows to support the Bangsamoro government's PFM systems, including local governance, budgeting, and revenue frameworks.
As part of the program, the ADB, the Public Expenditure and Financial Accountability (PEFA) Secretariat, and other development partners will conduct the PEFA Assessment to guide the country's PFM reform pathway. ■
