Senate eyes Philippine Budgeting Code

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

Under Senate Bill 1921, the proposed measure would create 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 bill is designed to address gaps in the current budgeting system and provide a 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,” he said.

The senator emphasized that the Philippine Budgeting Code would act as a long-term reform, complementing the annual General Appropriations Act by establishing consistent rules for government budgeting and spending.

Citing research from the International Monetary Fund, Gatchalian noted that the country’s current public financial management system is fragmented and lacks permanence, with policies often shifting depending on the priorities of each administration.

The Asian Development Bank has also observed that regulatory and oversight functions for public financial management are spread across multiple agencies, with overlapping responsibilities that hamper efficiency.

“Consolidating these processes under a single legal framework will improve accountability and ensure government resources are used effectively,” Gatchalian said, highlighting the potential of the measure to make public spending more transparent, consistent and responsive to the needs of Filipinos.