President Rodrigo R. Duterte has signed an executive order (EO) directing government departments and agencies to utilize digital payments for government disbursements.
EO 170, signed by Duterte on May 12, recognizes that the Covid-19 pandemic has highlighted the benefits of utilizing digital payment services across various sectors, as it enabled a fast, convenient, secure, and transparent mode of delivering government services and transacting business.
“The adoption of digital payments for government disbursements will facilitate the expedient distribution of financial assistance to beneficiaries, thereby providing a catalyst for financial inclusion for the most vulnerable sectors of society, contributing to the attainment of the country’s long-term vision under Ambisyon Natin 2040, and supporting our country’s development trajectory towards an inclusive, resilient, and future-ready economy,” the EO read.
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 must utilize safe and efficient digital disbursement in the payment of goods, services, and other disbursements, including the distribution of financial assistance, as well as in the payment of salaries, wages, allowances, and other compensation to employees.
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. It is understood that this Order does not foreclose the acceptance of cash and other traditional modes of payments.
IRR in 90 days
EO 170 also allows the creation of a Technical Working Group (TWG) to provide guidance and promote cost-efficiency and transparency in the procurement of digital payment solutions by covered agencies.
The TWG must be composed of representatives from the Departments of Finance (DOF), Budget and Management (DBM), Bureaus of Treasury (BTr), Internal Revenue (BIR), and the Government Procurement Policy Board Technical Support Office.
The TWG will monitor the procurement of digital payment solutions by covered agencies to ensure that it is in accordance with existing laws, rules, and regulations.
The DOF, in coordination with the Bangko Sentral ng Pilipinas, Commission on Audit, DBM, BTr, BIR, and other relevant government agencies, must issue the necessary implementing rules and regulations (IRR) within 90 days from the effectivity of this Order. The IRR must include, among others, the tiering guidelines relative to the implementation of digital collections under Section 7 of this order.
Transition
Concerned agencies are encouraged to establish programs to capacitate their personnel on innovative technologies, payment systems, and cybersecurity and data privacy protection tools, and must build public understanding of digital financial services.
The digitalization of payments is in line with the government’s thrust to develop an inclusive digital finance ecosystem, in accordance with the Digital Payments Transformation Roadmap 2020-2023 and the National Strategy for Financial Inclusion 2022-2028, and will complement existing efforts to make formal financial services accessible to vulnerable and underserved sectors.
Source: Philippines News Agency
