THE Department of Budget and Management (DBM), the European Union (EU), and Unicef have launched a joint Public Finance Facility, a cooperative program aimed at promoting targeted and transparent budgeting to improve the lives of the most vulnerable children in the Philippines.
The initiative ensures sustainable and protected public spending on children and is being implemented in collaboration with the Department of Finance–Bureau of Local Government Finance, Council for the Welfare of Children, Department of the Interior and Local Government, National Economic and Development Authority, Early Childhood Care and Development (ECCD) Council, Department of Education, and Department of Health. Civil society organizations, including Positive Youth Development Network and Social Watch Philippines, are also participating to represent youth and community perspectives.
While the Philippines is nearing upper-middle-income status, challenges such as climate change, disaster risk, and deep inequality persist. The country ranks first in the region for climate and disaster vulnerability, with children among the most at risk.
Improved public finance is seen as critical to strengthening social services and protections for children, especially in times of crisis when families struggle to afford food, healthcare, and education.
As of 2021, 52% of Filipinos living in poverty — around 10.5 million — were children.
In the Bangsamoro Autonomous Region in Muslim Mindanao, about 44% of children live in poverty.
“When budgets are cut or misused, children suffer the most. We thank our development partners, the EU and Unicef, for investing in our children—our future generation of leaders and nation-builders,” DBM Secretary Amenah F. Pangandaman said.
The Public Finance Facility will enhance how social sector budgets are planned, allocated, and used—ensuring they are effective, equitable, and accountable at both national and local levels. Key components include:
Program Convergence Budgeting (PCB): This system will coordinate funding across agencies involved in child-sensitive sectors, particularly ECCD, to ensure resources are allocated on time and used efficiently.
Policy Budget Tools: A budget tagging and tracking tool will be developed to strengthen local public finance systems, allowing better planning and service delivery for children.
Youth Participation in Governance: The facility will support children and adolescents in joining the Open Government Partnership (OGP), encouraging their involvement in policy-making and budget decisions. During the OGP Regional Meeting, UNICEF facilitated an intergenerational dialogue, where Filipino youth advocate and climate campaigner Joshua Villalobos joined a panel alongside leaders from Papua New Guinea, Armenia, and the Philippines.
The initiative supports the United Nations’ Sustainable Development Goals and aligns with the Philippine Development Plan 2023–2028.
“The EU is committed to helping the Philippines build a resilient and inclusive society. Investing in children today is a strategic investment in the country’s future,” said Massimo Santoro, EU Ambassador to the Philippines.
Unicef Acting Representative to the Philippines Behzad Noubary added, “This facility marks a major step in improving public investments. We aim to expand social protection programs and child-friendly policies, helping children living in multidimensional poverty survive and thrive.”
The EU-Unicef Public Finance Facility will invest $6 million over three years to support the Philippines and seven other countries in South and Southeast Asia in making national budgets work better for children.
