Philippines now ranks No. 1 in ASEAN for budget transparency: There's a big catch

Manila: The Philippines remains Southeast Asia's most transparent country in terms of budget disclosure, according to the 2025 Open Budget Survey (OBS) released by the International Budget Partnership (IBP). 

Despite its strong performance in making budget information publicly available, however, experts say major weaknesses in “oversight” and public participation continue to expose the budget process to political influence.

The Philippines posted the highest transparency score in the region, reflecting improvements in the government's publication of key budget documents and fiscal information. 

Transparency measures how much information governments provide to the public on how public funds are raised, allocated and spent.

However, the survey also found weaker performance in budget oversight and citizen participation — two areas considered essential for ensuring accountability.

According to Dr. Alicor Panao, data scientist at the Inquirer and associate professor at the University of the Philippines, the findings point to a deeper structural problem in the country's budget system.

“Legislative oversight is a core function of the power of the purse,” Panao said, referring to Congress' constitutional role in scrutinising government spending and checking executive authority.

He said recent developments — an expose of theft of public funds through multibillion budget insertions that end up in ghost or substandard flood defences — have weakened this function.

This practice has allowed opaque practices to persist even as budget documents become more accessible to the public.

Among the vulnerabilities cited by Panao are late-stage amendments inserted behind closed doors after the formal budget approval process, limiting public scrutiny and reducing transparency in how funds are ultimately allocated.

The concern highlights a distinction often overlooked in discussions about government transparency: making budget information available does not automatically guarantee accountability.

The Open Budget Survey (OBS) evaluates countries across three pillars — transparency, oversight and public participation. 

While transparency measures the availability of budget information, oversight assesses the ability of legislatures and audit institutions to review and challenge government spending. 

“Public participation” measures opportunities for citizens to influence budget decisions.

Governance advocates have long argued that weaknesses in oversight can undermine transparency gains by allowing spending decisions to be altered through processes that receive little public scrutiny.

The latest survey suggests that while the Philippines continues to lead its regional peers in disclosing budget information, significant reforms may still be needed to strengthen congressional oversight and create more meaningful opportunities for public participation in the budget process.

For critics of the current system, the challenge is no longer simply making budget data public, but ensuring institutions have the power and independence to hold decision-makers accountable for how public funds are ultimately spent.

The country scored 76 out of 100 in budget transparency — up slightly from 75 in 2023 — placing it well above the global average of 45 and the Asia-Pacific average of 49.

It also comfortably cleared the IBP’s threshold of 61 points, which signals “sufficient” public access to core fiscal information.

The OBS evaluates how governments publish, structure, and update key budget documents, using 109 indicators covering eight major fiscal reports.

These include how accessible, timely, and comprehensive data are on how governments raise and spend public funds.

The latest report also flagged a growing imbalance: while transparency improved, accountability mechanisms weakened.

Despite leading the region in openness, the Philippines saw declines in two critical areas:

The IBP noted that this creates a paradox — high transparency does not necessarily translate into stronger citizen engagement or institutional checks on spending.

This is because the budget system remains vulnerable to political manipulation due to:

These practices reduce meaningful scrutiny and turn budgeting into a vehicle for political patronage rather than transparent national planning.

The findings come amid ongoing government efforts to improve fiscal governance. 

In January, Executive Secretary Ralph Recto met with local government officials to align national budget priorities with local needs for the 2026 budget cycle, emphasising improved fund utilization and measurable social outcomes.
The initiative reflects President Ferdinand Marcos Jr.’s directive to strengthen coordination with local government units (LGUs) and improve transparency in budget execution.