STRENGTHENING governance through bureaucratic efficiency and reforms, including transparency and accountability in managing public funds, will help the country achieve an "A" credit rating, a Cabinet official said. Navigating the government's Public Financial Management (PFM) Reforms road map will improve the government's budgetary processes and ultimately increase the country's international credit rating, Budget Secretary Amenah Pangandaman said in a statement released to the media. While acknowledging positive economic indicators like employment rates, gross domestic product (GDP) growth, inflation, investments and foreign exchange (forex) project the country's financial stability, these are not enough. "This [road map] is part of our [push] for [strong] governance [through] bureaucratic efficiency and reform, which is one of the crucial components to earning an "A" [credit rating]," Pangandaman said. "We just have to solidify it — employment rates, GDP growth, inflation — everything ... FDI (foreign direct investments), forex ... We have already put it in place ... how to go about it," she added. Following the road map, along with maintaining a positive outlook on the aforementioned factors, will help spell economic progress and boost the credibility and stability needed for the country to get a higher credit rating. To date, the Philippines has gotten an "A" from the Japan Credit Rating Agency Ltd., and Rating and Investment Information Inc. However, the top three risk assessment firms have not done so. Moody's has maintained its "Baa2" rating for the Philippines, Fitch has given it "BBB," while S&P has scored it with "BBB+." Pangandaman explained that the road map's plan of actions are geared to align planning, budgeting and auditing across government agencies to aim for more efficient public service and fiscal responsibility. The budget chief said that, so far, 13 of these actions are under way, including Planning and Budget Linkages, Cash Management, Public Asset Management and Digital PFM. The plan includes improving disaster risk management, procurement and local government financial management, all of which are crucial for boosting investor confidence and achieving a better credit rating. "[As for] capacity development, we've been doing it. We've trained national and local government units, more than 7,000 across the country," Pangandaman said. "And hopefully we'll have our own PFM institute, which the President mentioned earlier, to make it more coherent."
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