Authors: Maria João Kaizeler, Myra Evelyn P. Ravelo, and Raffy D. Amos (Asian Development Bank)
The Philippines’ landmark PEFA++, combined with the Disaster Resilient and Responsive PFM, and the Child-Responsive PFM assessments, shows that when reforms are driven by national leadership, inclusive dialogue, and innovation, even the most complex diagnostics can be turned into action. By listening to the needs of PFM practitioners, benchmarking against international practices, and embedding results in the PFM Reforms Roadmap 2024-2028, the Philippines has demonstrated that assessments are not ends in themselves, but catalysts for reform, providing oversight, insight, and foresight.
Context
The Philippines, one of ASEAN’s fastest growing economies, has placed public financial management (PFM) at the center of its reform agenda recognizing that robust PFM systems are key to inclusive growth, resilience, and citizen trust. With support from the Asian Development Bank (ADB), the government introduced a three-phased reform approach.
Read about the Three Phased PFM Reforms Approach here: Designing a Comprehensive Public Financial Management Reform Plan for the Philippines
In 2024, the Government of Philippines’s PFM Committee, composed of the Department of Budget and Management (DBM), Department of Finance (DOF), Bureau of Treasury (BoT), and Commission on Audit (COA), supported by ADB and in consultation with more than 1,100 local PFM practitioners, developed the PFM Reforms Roadmap 2024–2028. This Roadmap sets a clear vision for modernizing PFM systems to support economic transformation and disaster resilience.
Philippines PEFA++, DRR and ChPFM Assessments Process
To benchmark progress and align the Roadmap with international practices, the Philippines undertook a third PEFA assessment (following the 2010 and 2015 assessments). Carried out between May 2024 and March 2025, the PEFA assessment was enriched by the supplementary frameworks on Gender and Climate (collectively the 2025 PEFA++) and expanded with two additional tools: the World Bank’s Disaster Resilient and Responsive PFM Toolkit (DRR-PFM), and the newly developed UNICEF Child-Responsive PFM (ChPFM). The assessment was led by the PFM Committee, with the PFM Secretariat as the government’s focal point, and ADB as lead partner and assessment manager. More than 80 government practitioners and development partners - including UNICEF, UNDP, World Bank, AFD, IFAD, and the Global Fund – were part of the assessment team. Leveraging the use of technology for data gathering and monitoring, the entire process, from planning to validation and report finalization, was completed in a record nine months, securing PEFA Check in April 2025.
(Click the Images to Access the Reports)
Results
The PEFA++ provided an evidence-based statement of PFM performance, with the publication signaling the Philippines’ commitment to transparency and accountability. Importantly, the results highlighted progress in budget reliability, transparency, fiscal strategy, and asset management and also identified pending weaknesses in Philippine PFM systems and controls that continue to hamper efficiency and create risks of fund misuse - a clear call for urgent, sustained reform.
Equally important, the assessments identified critical areas for expanded reforms, such as revenue administration, legislative oversight, and results-based frameworks. Donor-government collaboration was also strengthened with development partners gaining deeper insights into the national context, while contributing to the joint analysis that will directly inform the midterm review and updating of the PFM Roadmap 2024–2028.
Most importantly, the PEFA++ underscored the explicit connection between diagnostics and impact. PFM work is not supposed to be an abstract technical exercise – it is about ensuring that every peso collected is raised fairly, managed transparently, and spent more efficiently for the benefit of Filipinos. By strengthening revenue administration, improving fiscal transparency, and aligning expenditure with national priorities, resources are directed to where they matter most: classrooms, hospitals, social protection, and investments in climate and disaster resilient infrastructure, among others.
The findings are being actively translated into action. Eleven technical working groups are reviewing reform focus areas, integrating PEFA results into the midterm review and updating of the PFM Reforms Roadmap 2024-2028, and designing a sequenced action plan to institutionalize reforms. The aim is to lock in gains, such as improved budget reliability and stronger fiscal discipline, while expanding reforms to areas still underdeveloped.
By embedding PEFA results into the reform cycle, the Philippines is showing how diagnostics become a living tool to guide priorities, strengthen institutions, and ultimately deliver better public services and a more secure future for its people.
Lessons learned
The Philippines’ PEFA++ shows that even the most ambitious PFM diagnostics can succeed when anchored in strong leadership and inclusive processes. Seven factors stand out:
Government leadership and transparency. Publishing the full reports was a strategic choice that built trust.
Continuity through a shared vision. Embedding the PEFA findings and recommendations into the PFM strategy roadmap linked diagnostics with reforms.
Multistakeholder collaboration. Government and development partners worked seamlessly, avoiding silos and reducing overlap and fragmentation.
Expanded diagnostics. Pioneering tools like ChPFM and DRR-PFM addressed emerging priorities, with the Philippines piloting the ChPFM worldwide.
Empowerment of PFM practitioners. Frontline PFM staff were treated as system “owners,” not just data providers, increasing ownership in the entire reform process.
Designation of a champion to drive the entire process. The Philippines’ PFM Committee acted as the hub and ensured smooth coordination and continuity.
Harnessing technology. The use of a digital platform for data collection and exchange of information significantly enhanced the efficiency of the assessment process.
This experience shows that the PEFA, when embedded in a national vision and managed inclusively, becomes more than a diagnostic - it becomes a platform for collective action. The Philippines’ pioneering use of PEFA supplementary frameworks demonstrates how PEFA tools can inspire strategic innovation, such as the child-responsive module developed from PEFA Gender, now being prepared by UNICEF for replication globally.
This achievement goes beyond a technical milestone – it underscores that public financial management, when practiced with openness and purpose, builds resilience, equity, and trust. Every peso managed with integrity is an investment in classrooms, hospitals, social protection, and disaster and climate resilience. In doing so, the Philippines has set a global benchmark - not only for the speed and scope of its assessment, but also for demonstrating how collaboration and vision can converge to strengthen institutions and improve people’s lives.
Additional information
• Video: [5-minute video – forthcoming]
• Reports: PEFA 2025 Philippines report, PEFA Gender, PEFA Climate, DRR-PFM and Child-responsive PFM
• Photo credits: Department of Budget and Management, Philippines.
