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DBM taps blockchain to make dudget process more transparent

Blockchain is used to secure budget records and boost transparency in public spending.

The Department of Budget and Management (DBM) is now using blockchain to track how government funds are released. It’s a first for the Philippines and one of the earliest large-scale efforts in Asia to apply this kind of tech to public finance.

Working with BayaniChain and ExakIT, the DBM launched a platform that records Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs) on the Polygon blockchain. These records are tamper-proof and easy to verify. Anyone can scan a QR code or search the site to check how funds were authorized and released.

DBM Undersecretary Goddes Hope Libiran said the goal is simple: make sure every peso is accounted for and every transaction is transparent. The system uses cryptographic consensus to protect data and prevent fraud.

Here’s how it works: budget documents are first issued through DBM’s Action Document Releasing System. Then, BayaniChain’s blockchain-as-a-service platform secures them. A protocol decides which details are public and which stay private.

The DBM also plans to expand the system to cover the entire budget cycle, from planning and procurement to audits. AI tools might also be added to spot anomalies and help citizens understand how money is spent.

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What do you think of this development? Stay tuned for more updates.

Gracielle "Bubbles" Rilloraza leverages over a decade of experience in business operations and customer service within the banking and telecommunications industries. She holds a Business Management Degree and a Master’s Degree from De La Salle University (DLSU).

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