Editor's Note

Public finance management, whether poorly or expertly handled, invariably impacts the lives of every citizen. Managing our country’s revenue, expenditures, and debt load is surely a daunting task. Thus, we need experts and patriots, those with the interest of the country at heart, to ensure that the nation’s finances and the economy as a whole is performing well vis-a-vis the rest of the world. Financial managers are expected to help craft policies and adopt strategies to make sure that the economic benefits will trickle down to and be meaningfully felt by the marginalized, the least, and the last in our society.

For this reason, reforms in public finance management (such as the issue of our fragmented institutional framework) must be continuously and seriously pursued. Efforts to improve efficiency, accountability and transparency in public fund use must be made. It is only when there is wise, credible and transparent utilization of limited public funds (including addressing the issue of predictability and control of budget execution, as well as the reduction of misuse of funds) can we ensure the effective, immediate, substantial, direct and cost-efficient delivery of public services, especially to the poor.

To be sure, ordinary citizens can contribute to ensure an effective public financial management by supporting more inclusive budget processes and putting together pro-poor fiscal policies. However, getting an impactful citizen engagement in the field of public finance, is still a challenge. For instance, budget preparation is still very much invisible to the general public and has little to do with citizens. Hopefully, we will have a more engaged citizenry in this regard.

In any event, the focus must be the poor, the have-nots. Reforms and finance policy considerations must prioritize them. It is already well established that high economic growth rates, whenever achieved, do not necessarily result in reducing poverty. Needless to say, poverty reduction is key to a developing country such as ours.

The efficient management of the country’s economy all boils down to good government; as it is the latter that ultimately promotes good economics. Indeed, it has often been said that good government results in good economics. There is also the matter about ensuring that our country’s moral economy will not go bankrupt, for always, when it does, our financial economy immediately follow suit. There is an imperative, in other words, to have national leaders and economic managers who are not only competent, but are also upright and genuinely pursues the country’s greater interest.

As our country continues to feel the adverse and debilitating economic and social effects of the pandemic, particular attention should be given to the quality of financial and economic management. The national budget, for instance, which is a statement of our priorities, must reflect our country’s strategic development plan. It must articulate the nation’s resolve to recover and lift itself from today’s challenging situation.