THE DEPARTMENT of Budget and Management, European Union (EU), and UNICEF have launched a joint Public Finance Facility, a cooperation programme to support the concerted and targeted budgeting of public funds to improve the lives of the most vulnerable children in the Philippines. This initiative ensures sustainable, protected, and transparent public spending on children.
The program is also carried out in collaboration with the Department of Finance—Bureau of Local Government Finance, the Council for the Welfare of Children, the Department of the Interior and Local Government, the National Economic and Development Authority, the Early Childhood and Care and Development (ECCD) Council, the Department of Education, and the Department of Health. Positive Youth Development Network and Social Watch Philippines will also participate to provide the perspectives of youth and civil society.
Beyond money – ending multidimensional child poverty
While the Philippines is poised to reach upper-middle income status, vulnerabilities such as climate change, high disaster risk, and significant inequalities persist. The country ranks first in the region for climate and disaster risks, and children are particularly vulnerable.
Improved public finance bolsters social services and protection for children, critical during tough times when families cannot afford nutritious food, health, or education. In 2021, 52 per cent (10.5 million) of the people living in poverty in the Philippines were children. The Bangsamoro Autonomous Region in Muslim Mindanao still faces significant child poverty gaps, with around 44 per cent of children living in poverty. Protecting public budgets and investments is essential– when budgets are cut or used ineffectively, children cannot thrive and develop.
“We thank our development partners, the EU and UNICEF for investing in our children—our future generation of leaders and nation-builders. Indeed, we are keen on pushing forward Education and other programs for the development of children and the youth as a priority agenda for prosperity,” DBM Secretary Amenah F. Pangandaman said.
Key features
The facility will play a pivotal role in improving how social sector budgets are planned, allocated and used sufficiently, effectively, efficiently, equitably, and transparently by institutions at national and subnational levels that can be held accountable by the public.
It aims to deliver:
- Enhanced Program Convergence Budgeting (PCB) system: The facility will support the development and implementation of a system for child-sensitive sectors, particularly for Early Childhood Care and Development, ensuring that public funds are allocated on time, and used efficiently to meet the needs of children. PCB ensures that government resources are coordinated in a holistic way across departments and agencies working towards the same goals.
- Development of policy budget tools: A budget tagging and tracking tool will be developed to strengthen sub-national public finance management systems, enabling local governments to better plan, budget, and deliver social services for children.
- Increased participation of children and adolescents in the Open Government Partnership (OGP), a multilateral initiative aimed at promoting transparency and improving governance: The facility will promote open, transparent, and participatory governance by involving children and adolescents in policy dialogues and decision-making processes. This will empower young people to contribute to policy and budgeting processes that hugely affect their lives. UNICEF facilitated an intergenerational dialogue during the OGP Regional Meeting hosted by the Philippine Government. UNICEF Philippines Youth Advocate Joshua Villalobos, a climate change campaigner, joined a panel together with leaders from Papua New Guinea, Armenia, and the Philippines.
Collaborating for sustainable development
The public finance facility will contribute to the achievement of the United Nations’ Sustainable Development Goals and the objectives of the Philippines Development Plan 2023-2028.
“The EU is committed to supporting the Philippines in building a resilient, shock-responsive, and inclusive society. This facility will provide the necessary resources and support to ensure that children receive the care and protection they deserve,” said Massimo Santoro, Ambassador of the European Union to the Philippines. “Beyond being a human rights concern, investing in the children of today is also a strategic choice: it means investing in the future of the Philippines,” he added.
“Children are at the heart of our mission. This new facility represents a significant step towards improving public investments. In the longer term, we want to increase the coverage of social protection programmes and family-friendly policies for children living in multidimensional poverty, so they can survive and thrive,” said Behzad Noubary, UNICEF Acting Representative to the Philippines. “We are grateful for the collaboration of DBM and for the EU’s support in this vital initiative.”
The EU-UNICEF Public Finance Facility will invest 6 million dollars over a period of three years to support the Philippines and seven other countries in South and Southeast Asia, in their efforts to make public budgets work for the welfare of their children.
