Finance Secretary Ralph G. Recto has highlighted the essential responsibility of the Philippine government to ensure prudent financial management as it navigates the current budget season.

This statement follows the release of the 2024 Philippines Public Expenditure and Financial Accountability (PEFA) Reports, which were made public on June 10, 2025. The PEFA reports provide a detailed assessment of the public financial management (PFM) system in the Philippines, identifying strengths and weaknesses based on evidence-based criteria.

The assessment indicates that the Philippines meets fundamental requirements for public financial management and has shown notable performance in several critical areas, including responsiveness to gender, climate, children's needs, and disaster circumstances.

These findings point to the country’s ongoing efforts to enhance public service delivery and maintain macroeconomic stability essential for long-term economic growth.

Secretary Recto referred to the PEFA reports as vital literature for policymakers, stressing the importance of wise spending.

He articulated the need for a fiscal framework that is resilient to economic shocks and responsive to national priorities, cautioning against arbitrary adjustments that undermine fiscal plans and objectives.

He emphasized the significance of aligning expenditures with sustainable revenue generation, stating that proper budgeting should prevent creating a burden of debt for future generations.

This approach is rooted in the principle that the national budget should be within the financial means of its constituents, thereby safeguarding the economic future of the country.

The 2024 PEFA Assessment represents a pioneering multi-framework and multi-stakeholder approach to evaluating public financial management in the Philippines, led by the Asian Development Bank, alongside various development partners.

The Philippines is recognized as the first nation in the ASEAN region to undertake a comprehensive PFM Disaster Response and Recovery Assessment.

Key findings from the assessment point to a solid fiscal foundation for the Philippines, characterized by strong revenue generation and expenditure performance, effective debt and cash management, transparent intergovernmental financial transfers, and improved oversight in procurement processes.

In reiterating the government's commitment to the Medium-Term Fiscal Framework (MTFF), Secretary Recto acknowledged the importance of continuous improvement in fiscal discipline and governance.

He stressed the need for the reports to serve as practical instruments for enhancing on-ground conditions rather than mere academic documents.

The launch event, organized by the Department of Budget and Management, drew approximately 120 attendees from various sectors of government, including the executive and legislative branches, the PFM Committee, peer reviewers, and representatives from international development agencies such as the Asian Development Bank, United Nations Children’s Fund, and Agence Française de Développement.