The Asian Development Bank (ADB) has approved a USD500 million policy-based loan aimed at advancing the country’s public financial management (PFM) reforms and ensuring better public services for Filipinos.
The loan, which supports the government’s Public Financial Management Reform Program (Subprogram 1), is designed to strengthen the national budget framework, enhance local government capabilities, and establish a robust PFM system in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM).
“This new program signifies the Philippine government’s commitment to building an open government founded on the principles of efficiency, transparency, accountability, and good governance,” said ADB Philippines country director Pavit Ramachandran. “Not only will this program improve the efficiency and transparency of public funds, but it will also encourage private sector participation in public services, strengthen climate resilience, and improve preparedness for the Filipino people.”
The initiative is expected to foster a more efficient allocation of resources, bolster public sector capacity, and promote accountability, all of which are key to the country’s sustainable development and long-term economic growth.
