a) Develop a Government Integrated Financial Management Information System (GIFMIS). A vital reform initiative is the strengthening of the public financial management (PFM) system. PFM is a system of rules, procedures and practices for government to manage its public finances. PFM includes not only sound budgeting but also management of public debt, assets, and revenues, fiscal relations between levels of government or between government and public enterprises, and a system of public reporting on the public sector's financial operations.
A major undertaking will be the development and installation of a GIFMIS, an application that shall automate routine financial operations and reporting of the national government, particularly financial planning and budgeting, treasury, and accounting functions. The GIFMIS will link budget preparation and execution to accounting, cash management, reporting, and auditing. Once installed, it will enable the government to implement improved systems for public financial management.
b) Empower LGUs and promote public accountability. Policy reforms to advance local autonomy and decentralization shall be pursued. Service delivery functions have been vested in LGUs on the premise that they would respond better to diverse and changing local conditions, and thus more effectively meet the needs of their constituents. Emerging issues and needs of LGUs related to their devolved service delivery functions shall be continuously identified. Proposed legislation shall likewise be reviewed and appropriate recommendations will be provided to ensure that LGU needs are met and there is no reversal of decentralization.
Efforts to enhance the capacities of LGUs shall be intensified to improve their ability to deliver public services. The capacity needs of LGUs shall be identified and appropriate interventions provided. Knowledge management activities, including the sharing of good practices in local governance, shall be undertaken to enhance information-sharing among localities and help improve LGU performance.
c) Enhance LGU accountability mechanisms. Improved accountability of local officials induces responsible leadership and ensures that efficient and responsive services are delivered. In promoting local government accountability, the following strategies shall be undertaken:
• Implementation of systems to determine performance of LGUs in terms of their state of local governance and compliance with policies;
• Public disclosure of LGU performance; and
• Institution of performance-based LGU incentives or awards.