MARCH 7, 2025 — The National Economic and Development Authority (NEDA) and the Department of Budget and Management (DBM) signed a Joint Memorandum Circular (JMC) on Thursday (March 6) to strengthen the government’s budgeting approach in support of the nation’s development objectives and priorities.

Signed at the DBM Central Office, the JMC institutionalizes the Program Convergence Budgeting (PCB) framework to improve inter-agency coordination in government planning, programming, and budgeting. This approach ensures that resources are strategically directed toward high-impact programs that align with the administration’s socioeconomic agenda and the Philippine Development Plan (PDP) 2023-2028.

“The PCB helps us operationalize the ‘whole-of-government’ and ‘whole-of-society’ approach to implementing our plans and ultimately achieving desired outcomes such as rapid and sustained economic growth, high-quality job creation, and accelerated poverty reduction,” NEDA Secretary Arsenio M. Balisacan said.

The JMC also establishes the PCB Steering Committee, co-chaired by NEDA and DBM, which will oversee and harmonize government programs, activities, and projects. This mechanism seeks to strengthen the impact of public spending in the country by eliminating redundancies, addressing implementation gaps, and ensuring better resource utilization.

“Overseeing and monitoring the implementation of the PCB programs, the Committee will identify lessons learned, propose solutions and adjustments to address challenges, and refine PCB programs consistent with the National Evaluation Policy Framework. This system aids in closing the loop and enhances the effectiveness of public-sector service delivery,” Balisacan added.

Around 5,000 programs, activities, and projects from various government bodies are submitted annually to the Public Investment Program system, forming the basis of the National Expenditure Program. The PCB framework will integrate these initiatives to achieve a cohesive and responsive national development strategy.

“Currently, even when government agencies align their proposals with the PDP objectives, coordination and information constraints, as well as overlaps, duplication, or gaps in program proposals from each agency, are inevitable. The PCB approach helps to address these issues by streamlining and coordinating efforts across these agencies,” Balisacan said.

To ensure greater accountability and transparency, the PCB Steering Committee will oversee the development of a digital system to manage, utilize, and share PCB program data. This initiative aims to enhance decision-making, facilitate real-time tracking, and improve the overall efficiency of public spending.

“We look forward to utilizing the PCB as a development tool that can help ensure that every peso is well-spent toward ultimately achieving a Bagong Pilipinas where we can experience a matatag, maginhawa, at panatag na buhay para sa bawat Pilipino,” Balisacan concluded.

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