CAN AI BE USED FOR NATIONAL BUDGETING?

 CAN AI BE USED FOR NATIONAL BUDGETING?

Artificial Intelligence (AI) is already being used effectively in personal and corporate budgeting. It can analyze spending patterns, predict future expenses, and provide actionable insights for financial management. If AI is proving successful in these areas, the question arises: can AI also be utilized for national budgeting? The answer lies in exploring its potential applications and addressing the challenges involved.

The Potential of AI in National Budgeting

1.   Data-Driven Appropriations: National budgets are complex and must account for mandatory requirements, such as the constitutional mandate for the education sector to receive the highest allocation. AI can analyze data to determine allocations based on objective needs, historical utilization, and actual demand. This ensures that resources are directed where they are needed most.

2.   Alignment with Development Goals: AI can help align budget allocations with the Sustainable Development Goals (SDGs) and the Medium-Term Philippine Development Plan (MTPDP). By analyzing progress data, AI can identify gaps and suggest targeted investments to achieve these goals more effectively.

3.   Exclusion of Self-Sufficient Entities: Government-Owned and Controlled Corporations (GOCCs) that are self-supporting and self-sustaining may no longer need to be included in the national budget. AI can assist in identifying such entities and reallocating resources accordingly.

4.   Compliance with International Commitments: Certain budgetary allocations are mandatory to meet international commitments. AI can track these commitments and ensure that sufficient resources are allocated to comply with them.

5.   Cost-Benefit Analysis: AI can conduct comprehensive cost-benefit analyses to evaluate the historical impact of public investments. This enables policymakers to prioritize projects with proven returns and significant social or economic benefits.

6.   Investment in Digitalization: AI-driven insights can highlight the importance of progressive investments in digitalization and computerization, which are crucial for improving government efficiency and public service delivery.

Engaging Stakeholders in the Budgeting Process

The process of national budgeting should begin with public consultations, even before reaching the committee level. Government agencies proposing congressional funding should invite private sector stakeholders to participate in budget discussions. This collaborative approach ensures transparency and inclusivity while benefiting from diverse perspectives.

Challenges and Considerations

1.   Data Quality and Bias: The accuracy of AI-powered budgeting tools depends heavily on the quality of data. Ensuring unbiased, representative, and up-to-date data is critical.

2.   Transparency and Accountability: While AI can assist in decision-making, the final responsibility must remain with human policymakers. Decision-making processes should be transparent and accountable to the public.

3.   Ethical Implications: Ethical considerations, such as data privacy and algorithmic bias, must be addressed. There is also the need to mitigate the risk of job displacement resulting from increased automation.

4.   Legislative Framework: In the United States, lawmakers are already drafting policies to regulate AI and maximize its benefits. The Philippines must follow suit to create a robust legal framework that governs the use of AI in public finance.

Conclusion

AI has the potential to revolutionize national budgeting by making it more data-driven, efficient, and transparent. However, its implementation must be guided by a clear strategy, robust governance, and ethical considerations.

Ultimately, the success of AI in national budgeting depends on collaboration among government, academia, and the private sector. By leveraging AI responsibly, the Philippines can optimize resource allocation and pave the way for sustainable development.

Ramon Ike V. Seneres
iseneres@yahoo.com, 09088877282, senseneres.blogspot.com

02-14-2025

Comments

Post a Comment

Popular posts from this blog

PHILIPPINE INCLUSIVE SYSTEM FOR COLLEGE ENTRY OF STUDENTS

 PHILIPPINE INCLUSIVE SYSTEM FOR COLLEGE ENTRY OF STUDENTS My advocacy partner Mr. Roi Baluyot and I have created the Philippine Inclusive System for College Entry of Students (PISCES), for the purpose of making it easier for prospective students from the marginalized sectors to enter any of the State Universities and Colleges (SUCs) that are located all over the Philippines. Although tuition is free in these SUCs, many prospective students find it difficult to proceed, because of possible expenses that they could not afford, such as books, learning materials, snacks, board and lodging, specifically for dormitory fees if they are from out of town. This idea started when Mr. Baluyot informed me that there are some UP alumni groups in the United States who are concerned about the fact that the the majority of the students who are presently enrolled in the UP campuses right now are mostly coming from the upper classes. That reality defeats the purpose of UP becoming a "university of ...
Read more

PREPARING FOR USAID PROJECT WITHDRAWALS

PREPARING FOR USAID PROJECT WITHDRAWALS The recent foreign policy shifts under returning U.S. President Donald Trump have significantly impacted global development aid, including USAID’s programs in the Philippines. With the United States reassessing its foreign assistance policies, it is almost certain that USAID funding for the Philippines will be reduced . This could lead to the slowdown—or even the complete shutdown—of various projects that have been instrumental in supporting economic development, governance, health, education, and infrastructure in the country. A Call for Proactive Government Action The Philippine government cannot afford to wait until the last minute to respond. The potential withdrawal of USAID projects must be addressed now , not when funding officially stops. A well-planned transition strategy is necessary to prevent gaps in critical services and ensure that the country’s development momentum is not disrupted. Steps the Government Must Take Immediate...
Read more

TELEMEDICINE AT THE GRASSROOTS LEVEL

 TELEMEDICINE AT THE GRASSROOTS LEVEL Marinduque Governor Presby Velasco has a wonderful plan to make telemedicine available to all the 218 Barangay Health Units (BHUs) in his island province, and I am very happy to help him with the project as his Information and Communications Technology (ICT) consultant.  Although the technology for telemedicine is already available in the market, it appears that no province has yet implemented a province wide telemedicine project that could connect patients from the grassroots level to the doctors at the municipal halls and the provincial capitol. By doing that, Governor Velasco will be able to achieve the goal of providing universal access to healthcare to everyone in his province. Although the project might appear to be complex, it is actually designed with a simple plan that would make it easy to implement. The one part of the plan is to install internet connectivity in each of the BHUs, using satellite or fiber, depending on what is av...
Read more