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The Importance of an Empowered ICTSS and an Empowered DBM
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Having a ITIL-based process in place for ICTSS will allow them to be at par with the IT standards being practiced and observed internationally. This would then translate to increase in productivity in terms of requirement not only within DBM but with interactions to other government agencies.
Incuventure will deliver the standards through employee education and trainings. Once done, ICTSS and DBM can expect the following changes:
- Improved communication internally between Bureaus and externally with other agencies.
- Better reliability and quality of service
- Optimization of services across different offices
Incuventure will continue the tradition of assisting the ICTSS in enabling the DBM to do the noble work it is doing. Why is the ICTSS the enabler of the DBM? To understand this we have to look at history and understand how it was before. In 1988 the National Budget was around 128 billion while the Philippine population then was 59 million. The current National Budget is 3.8 trillion while the Philippine population is estimated to be around 105 million. Over 30 years the budget has increased by 30 times while the population has increased by 79 percent. The manpower of the DBM has not approached anywhere near increasing 30 even 10 times the 1988 levels. The DBM has only been able to handle the increasing amounts, the increasing number of budget items, and the increasing complexity of the budget due to the adoption of the DBM of Information and Communication Technology. The ICTSS has enabled the DBM to handle the complexity of the modern Philippines with practically the same number of people. We have to credit the vision and boldness of the DBM legends who more than anywhere in the Philippine Government saw and used the power that ICT enabled governance holds.
The DBM was a visionary then and it should continue to be a visionary now. The dearth of data in years past is now in stark contrast to the overabundance of data now. The overabundance of data is currently overwhelming the capacity of current systems to process, analyze, and operationalize this data. The DBM as the management arm, and ICTSS being the technology arm of the DBM needs to once again be the visionaries of government today. The DBM-ICTSS must be at the forefront of understanding, testing, implementing, and capacitating the various agencies of the National and Local government to make use of technologies such as blockchain, data science, internet of things, artificial intelligence, virtual reality, augmented reality.
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Importance of DBM to Build Build Build (BBB)
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The president envisioned the reduction of poverty by 2022. Among the reforms that will drive this agenda is the acceleration of infrastructure that will yield robust growth across the archipelago and create jobs for the Filipinos.
Under the government’s “Build Build Build” program, infrastructure projects are targeted to reach 8-9 trillion pesos from 2017-2022. The DBM as the agency accountable for “carrying out the President’s responsibility of preparing the budget”, will ensure the proper allocation of budget in order to finance the government’s plan that will usher the golden age of infrastructure.
Furthermore, the DBM shall be instrumental in the management of the BBB. In large part the BBB shall strain the capacity of the current systems, processes, people, and technology. The DBM must be at the forefront of managing the complexity of going from 3.8 Trillion budget to the envisioned 8-9 Trillion pesos of infrastructure spending. To put this in perspective the infrastructure spending of the past administration at its highest was 1 Trillion, a large part of which was underspent because of the low capacity of the economy to absorb the demand. The economy fails to fully implement these projects because of the complexities of government procurement and the lack of expertise in the private sector to bid and implement these mega projects.
The DBM as the management arm of the government can focus on the capacitation of government agencies and the sharing of management best practices. Through this management focus the DBM shall essentially shift the capacity of all agencies that undergo its guidance toward a higher absorption and in turn a higher output of infrastructure project deliveries.
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Importance of DBM to TRAIN
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The Department of Budget and Management plays a major role in the government’s ongoing tax reform project. With the passage of RA No. 10963 also known as the TRAIN law, DBM sees the government raising additional funds to help support the government’s accelerated spending on its “Build, Build, Build” and social services programs.
The DBM protects the people from the adverse effects of the TRAIN law. The DBM through the wise use of the budget can guide agencies to the proper sizing of project budgets, or the creation of new projects. The budgets of the DSWD, DOH, LGU, and other agencies that provide social services can be fine tuned using various analytics and statistical methods to provide the best bang for the buck. The poorest citizens can be helped using a various methods to shield them from the hunger and the deprivation that they may experience due to the increase in prices cascading through the economy.
Without the DBM the TRAIN may create unmitigated adverse effects on the most vulnerable citizens.
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Importance of DBM on Fiscal, Monetary, National Policy
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The DBM can prospectively have an impact on how Fiscal and Monetary policy is formulated.
Policies, such as the RA 10963 or more properly known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law, can be examined from the perspective of their first, second, or third order effects, particularly on cushioning the effects of these laws on the citizenry. For example, the effect of the sugar tax on the financial performance of companies that utilize sugar in their products, such as food and beverage companies), as well as businesses in downstream industries, such as wholesale and retail distributors, may be analyzed. The government has an obligation to its citizen to mitigate risks, minimize negative policy effect, and create opportunity.
The DBM armed with the latest Analytics and Business Intelligence platforms should endeavor to be in the driver’s seat of policy making. If the DOF shall manage the economy then the DBM shall manage the social consequences of National Government policy.
How will the DBM do this? This is done by weaponizing the budget against poverty, health risk, disaster risk, drug war risk, and all other negative shocks that limit the happiness, opportunities, and the flexibility of the Citizens of the Philippines. How does a weaponized budget act? A weaponized budget is required to be predictive, proactive, and prescriptive. The Budget should be predictive because the budget is enacted and conceived a year before. The Budget should be proactive because the problems when solved at the right time will cost far less than in any other time. This concept is another way of saying prevention is better than cure. The Budget should be prescriptive because it should factor in the best use of any resource.