The Philippines has made a groundbreaking move in public finance management by becoming the first nation to fully implement blockchain technology to record its national budget. This initiative, which starts with the 2026 General Appropriations Act (GAA), is being touted as a global first.
Dubbed the Digital Bayanihan Chain, the project digitizes the entire budget cycle. This includes everything from congressional approval to fund release and subsequent spending and reporting. Each transaction will be logged on a permanent, tamper-resistant ledger, ensuring that records are secure and transparent.
According to the Department of Information and Communications Technology (DICT), the primary aim of this initiative is to enhance accountability and transparency in the management of public funds. The system is designed to prevent the alteration or deletion of official budget records.
Henry Aguda, the DICT secretary, emphasized that the blockchain-based GAA offers more than just a technological enhancement; it serves as a “digital guarantee of integrity.” He stated, “It protects the official copy of the budget, prevents manipulation, and ensures long-term traceability of government funds. Transparency is no longer just visible — it”s permanent.”
The groundwork for this innovative project was established last year when Aguda announced at the 8th CXO Technology Summit that the DICT had received a grant from the blockchain firm Polygon. This grant, valued between $5 million and $10 million, enables the pilot project to be implemented without any cost to the government.
Aguda pointed out that corruption remains a significant challenge, and blockchain technology is being proposed as a solution to these entrenched issues. By placing the budget on the blockchain, every amendment and transaction will be transparent and visible, making it impossible to erase any record.
The DICT has stated that this new system will address long-standing concerns regarding budget manipulation and record-keeping, which have plagued various political administrations over the years. Because blockchain entries cannot be retroactively changed, the integrity of budget records is expected to be maintained despite changes in government officials.
This platform will allow the public to easily track the flow of funds, from approval to actual expenditure, enabling citizens, media organizations, and watchdog groups to verify budget information independently. Officials anticipate that the new system will diminish opportunities for fraud and bolster public trust through verifiable government financial data.
