Economics Division of BARMM Ministry of Finance and Budget Management Enhances Capacity Through Knowledge-Sharing with ADB and DBM 

12 February 2023  |  MFBM Economics Division

Metro Manila, February 9, 2023 - The Economics Division of the Ministry of Finance and Budget Management (MFBM) recently concluded a successful knowledge-sharing and benchmarking activity with the Asian Development Bank (ADB) and the Department of Budget and Management (DBM). The four-day event, held from February 6 to 9, aimed to enhance the division's capacity in economic research and forecasting, as well as support BARMM's fiscal and budget management reforms. 

The activity, organized as part of the Ministry's continuous capacity-building and standard-setting initiatives, provided an invaluable opportunity for the Economics Division to learn from experts and gain insights into effective economic research and forecasting methodologies. The ADB, through MFBM Director Amirah Pendatun, facilitated the training and knowledge-sharing session, demonstrating their commitment to improving local capacity in public financial management in BARMM. 

Knowledge Sharing with ADB

The knowledge-sharing session with the ADB's Macroeconomic Research Division took place on February 7, 2023, at the ADB headquarters in Ortigas, Mandaluyong, Metro Manila. Led by Senior Economist Aekapol Chongvilaivan and Macroeconomic Research Division Director Abdul Abiad, the ADB team shared their expertise in periodic economic forecasting and provided insights into economic and development agendas. They introduced various forecasting tools, including traditional forecasting methods and Nighttime Lights (NTL), which proved valuable for real-time data monitoring and policy identification. While some tools may not be immediately applicable due to technical limitations, the ADB expressed willingness to provide technical assistance, including replication of NTL, if BARMM requires it. 

The sessions conducted by the ADB covered a wide range of topics, including the purpose of forecasting, knowledge products developed by the ADB's Macroeconomic Division, and an overview of the ADB's Macroeconomic Monitoring and Forecasting (MMF) tool. The MMF tool, currently utilized for forecasting various economic accounts, was presented along with its structure, forecasting steps, advantages, and limitations. The Economics Division team was guided through the different active sheets of the MMF tool, which featured periodic datasets on demographics, gross regional domestic product (GRDP), inflation, employment rate, production, and fiscal revenue and expenditures. The participants actively engaged in using the MMF tool with actual economic data from BARMM, further enhancing their understanding and forecasting skills. 

Benchmarking with DBM

On February 8, the Economics Division team engaged in a courtesy meeting and benchmarking activity with DBM's Fiscal Planning and Reforms Bureau (FPRB) in Manila. The session aimed to foster shared knowledge and collaboration on research initiatives, standards, best practices, and recommendations to assist the division in refining its operation manual, ensuring quality standards, and advancing research endeavors. The team had the opportunity to meet with key officials, including Budget Policy and Strategy Group Assistant Secretary Romeo Matthew T. Balanquit and FPRB Acting Director Mary Joy de Leon.

During the sessions, DBM representatives provided an overview of the prospective research agenda, fiscal management initiatives, and ongoing quantitative modeling for fiscal analysis and forecasting. The discussions highlighted the collaborative efforts among DBCC member agencies, including the Department of Finance (DOF), National Economic and Development Authority (NEDA), Bangko Sentral ng Pilipinas (BSP), and Office of the President (OP), in analyzing potential shocks that may impact the national budget. The FPRB's roles, responsibilities, and macro-fiscal related assignments were also presented, showcasing the bureau's significant contribution to providing high-quality budget policy advice to support informed budgetary decisions.