Philippines leads regional push for stronger public finance systems for children

MANILA, 20 August 2026 – The Philippines is strengthening its role in advancing child-responsive public finance in the region, bringing together eight South and Southeast Asian countries to exchange reforms and practical solutions aimed at ensuring that limited public resources deliver better outcomes for children.

Through the Department of Budget and Management (DBM), and with support from the European Union (EU) and UNICEF, the Philippines hosted the South-South Exchange from 18 to 20 August, focusing on how governments can protect critical social investments and make public spending more efficient, transparent, and resilient amid mounting economic, fiscal, and climate challenges.

Held under the EU-UNICEF Public Finance Facility in South and Southeast Asia, the three-day exchange gathered representatives from Bangladesh, Bhutan, Mongolia, Nepal, the Philippines, Sri Lanka, Thailand, and Viet Nam.

Discussions centered on a common challenge confronting governments across the region: how to protect investments in children even when fiscal space is tight.

Participating countries shared approaches to improving the efficiency and effectiveness of social sector spending, protecting essential programs during periods of fiscal constraint, and strengthening the ability of public finance systems to withstand economic and climate shocks.

They also exchanged experiences on practical tools such as budget tagging, expenditure tracking, evidence-based planning, and the Social Sector Dashboard Budget Tracker. These mechanisms allow governments to better determine whether public resources are reaching critical services—including quality education, health and nutrition, child protection, and social protection programs—and whether these investments are translating into better outcomes for children and families.

The exchange comes at an important juncture for the Philippines as the country transitions toward upper-middle-income status, underscoring the need to translate economic gains into stronger institutions and more resilient social systems.

“The conversations over the past three days reaffirmed our resolve to invest in systems that protect children’s rights and ensure that all children, especially the most vulnerable, enjoy better outcomes. As the Philippines continues its transition to upper-middle-income status, this partnership helps ensure that economic progress is matched by stronger public finance systems so that every investment brings us closer to better, more equitable outcomes for children,” said Kyungsun Kim, UNICEF Philippines Representative.

For DBM Acting Secretary Kim Robert C. De Leon, stronger public financial management is ultimately about ensuring that government investments create lasting improvements in people’s lives—particularly for children.

“Spending for our children should never be seen merely as a cost. When we invest in a child, the return is measured not only in pesos or percentages, but in healthier lives, better opportunities, stronger communities, and ultimately, stronger nations. Here in the Philippines, this principle continues to guide how we strengthen our public financial management system. Our commitment to children is firmly anchored in their rights and welfare,” said Acting Secretary De Leon.

The South-South Exchange serves as the flagship knowledge-sharing platform of the EU-UNICEF Public Finance Facility, enabling governments across South and Southeast Asia to learn directly from one another and advance reforms that strengthen the planning, allocation, tracking, and use of public resources for children.

The 2026 exchange concluded with participating countries identifying key lessons and reaffirming a shared commitment to sustain reforms that make public finance systems more responsive, accountable, and focused on results.

“The European Union’s partnership with UNICEF through the Public Finance Facility reflects the broader ambitions of the Global Gateway Strategy. Global gateway is the European Union’s strategy to engage with partner countries. It is often associated with investments in connectivity and infrastructure, but it is equally about investing in the foundations of sustainable development: strong institutions, good governance and human capital”, said Frederic Grillet, Chargé d’Affaires of the Delegation of the European Union to the Philippines.

Since its launch in 2019, the EU-UNICEF Public Finance Facility, with EUR 3M contribution, has supported governments across the region in strengthening public financial management systems that benefit children.

Through technical assistance, knowledge sharing, and policy engagement, the Facility helps governments analyze how public funds are allocated and spent, generate evidence for better policy and budget decisions, and strengthen transparency and accountability in public spending for children.