Manila: Department of Finance (DOF) Secretary Ralph Recto on Wednesday emphasized the importance of using the Philippine Public Expenditure and Financial Accountability (PEFA) Assessment Report to guide authorities in the judicious allocation and expenditure of funds to ensure the sustained delivery of quality public services and programs.

According to Philippines News Agency, the results of the 2024 Philippines PEFA Assessment Report, released on Tuesday, indicated that the government maintains a strong fiscal foundation. This is evidenced by robust revenue and expenditure performance, effective debt and cash management, comprehensive performance monitoring, transparent intergovernmental transfers, and improved procurement oversight. Recto, who is also the Public Financial Management Committee Principal, regards these reports as a critical reminder for those in power to prioritize wise public spending.

Recto highlighted that the report should not merely serve as reading material for policymakers but should also be utilized to effect improvements in real-world conditions where they are most impactful. The 2024 PEFA Assessment marks the first multi-framework, multi-stakeholder assessment in the Philippines, led by the Manila-based Asian Development Bank.

The Philippines is the pioneering nation within the Association of Southeast Asian Nations (ASEAN) to undertake a comprehensive Public Financial Management (PFM) Disaster Response and Recovery Assessment. Recto pointed out the timely nature of the report's release as the government begins preparations for next year's national budget. He hopes the budget will be resilient to shocks, responsive to disasters, aligned with national goals, and protected from alterations that could undermine these objectives.

Recto underscored the fundamental principles of responsible budgeting, stating that spending should be limited to what can be sustainably raised and that revenues should precede appropriations. He cautioned against current expenditures resulting in significant debt burdens for future generations, emphasizing that reversing this order would result in long-term consequences.