DBM: IRR on adoption of digital payments available in few weeks

MANILA – The Department of Budget and Management (DBM) is on track to create the implementing rules and regulations (IRR) of Executive Order (EO) 170, which requires the use of digital payments for government disbursements and collections.

E0 170, which was signed on May 12 by former President Rodrigo Duterte, acknowledges that the adoption of digital payments will expedite the distribution of financial aid to beneficiaries.

“The IRR has been crafted and it’s been prepared by the agencies and now, it’s undergoing consultation. So hopefully, in a few weeks, we’ll have the IRR. And we’ll push for the digitalization,” Budget Secretary Amenah Pangandaman told senators during the Development Budget Coordination Committee Briefing on Wednesday.

Pangandaman also disclosed that the DBM has earmarked PHP12.47 billion for the transformation and digitalization of government processes and transactions in the proposed national budget for 2023, noting the significance of developing Information and Communications Technology (ICT) in the new normal.

“For 2023, we have a total budget for ICT and digitalization, PHP12.47 billion. This is across the national government agencies. And for the 2023 budget, we included a section on digital payments of government financial transactions. This is related to Executive Order No. 170 signed by then President Duterte – The Adoption of Digital Payments for Government Disbursements and Collections,” she said.

Of this figure, Pangandaman said the Department of Information and Technology (DICT) will receive the largest share amounting to PHP4.24 billion for its ICT systems and infrastructure development.

The Department of Finance, meanwhile, comes second with PHP3.56 billion, which is seen to help improve revenue collection.

Several senators and the government’s economic team discussed the digitalization of government processes and transactions, as the transformational program will provide many Filipinos with prompt and responsive service delivery.

EO 170 acknowledges that the Covid-19 pandemic has underlined the benefits of adopting digital payment services throughout multiple industries, as it has offered a quick, convenient, secure, and transparent method of delivering government services and conducting business.

Under the EO, “all departments, agencies, and instrumentalities of the government, including state universities and colleges, government-owned or -controlled corporations, are directed, and local government units (LGUs) are enjoined to adopt digital payments for their respective disbursements and collections.”

All covered agencies should adopt safe and efficient digital disbursement for the payment of goods, services, and other disbursements, including financial assistance distribution, and in the payment of salaries, wages, allowances, and other employee compensation.

As for government collections, all covered agencies are mandated to offer a digital mode of collecting payments for taxes, fees, tolls, and other charges and impositions. This Order does not foreclose the acceptance of cash and other traditional modes of payments.