The Anti-Red Tape Authority (ARTA) and the Department of Budget and Management (DBM) are moving to streamline government payment processes, aiming to ease long-standing cash flow problems that have delayed infrastructure projects and strained contractors doing business with the state.
During a meeting on July 17, ARTA Secretary Ernesto V. Perez and DBM Secretary Kim Robert C. De Leon advanced the Ease of Paying Credit (EOPC) initiative, a reform program designed to cut payment bottlenecks affecting government contractors, landowners covered by right-of-way acquisitions, and firms involved in major infrastructure and foreign-assisted projects.
The initiative targets one of the private sector’s persistent concerns. Delayed government payments can disrupt contractors’ cash flow, slow project execution and increase financing costs, ultimately affecting the pace of public infrastructure delivery.
Under existing procurement rules, contractors may suspend work if approved progress billing claims remain unpaid for more than 45 days after complete billing documents have been certified, provided notice requirements are met.
To institutionalize the reforms, De Leon said the DBM will designate a focal person to coordinate with ARTA and other government agencies in crafting a Joint Memorandum Circular that will standardize faster payment procedures across the bureaucracy.
Beyond speeding up disbursements, the agencies are also strengthening regulatory transparency through the Philippine Business Regulations Information System (PBRIS), a centralized digital platform that promotes good regulatory practices and greater public participation.
De Leon said transparency must go beyond simply publishing government information, stressing that meaningful engagement with civil society is essential to accountability and better governance.
Perez, meanwhile, said reducing payment delays is both an ease-of-doing-business reform and an economic imperative, as faster, more predictable government transactions can accelerate infrastructure implementation, improve public service delivery and enhance investor confidence.
The latest initiative signals a broader effort to make government not only a faster regulator, but also a more reliable client for businesses undertaking public projects.
