Senator Sherwin Gatchalian has filed a bill seeking to establish a Philippine Budgeting Code aimed at strengthening transparency and fiscal discipline in the management of public funds.

Under Senate Bill No. 1921, the proposed measure would institutionalize a comprehensive financial management framework to guide how government funds are planned, allocated and monitored.

Gatchalian, who chairs the Senate Committee on Finance, said the measure is intended to address gaps in the country’s current budgeting system and provide a more permanent legal structure for managing public expenditures.

“We have seen in flood control controversies and other corruption issues that there is no broad and permanent legal framework governing how public funds are managed,” Gatchalian said.

The senator said the proposed code would serve as a long-term reform that complements the annual General Appropriations Act by providing consistent rules for government budgeting and spending.

Gatchalian cited findings from the International Monetary Fund that the country’s existing public financial management system remains fragmented and lacks permanence, as policies can change depending on the priorities of the sitting administration.

The Asian Development Bank also noted that regulatory and oversight functions related to public financial management are spread across multiple government agencies, with some responsibilities overlapping.

According to Gatchalian, consolidating these processes under a single legal framework could help improve accountability and ensure more effective use of government resources.