Philippines Introduces Blockchain-Based Budget Monitoring System on Polygon Network
The Philippine government has taken a significant step towards enhancing transparency and credibility in public finance management with the launch of a blockchain-based platform for budget documents. The initiative, known as Project Marissa, was officially unveiled on July 30, 2023, at the DBM Central Office in Boncodin Hall.
The platform is accessible through the portal blockchain.dbm.gov.ph. It leverages blockchain technology to create immutable digital records of key budget documents, such as Special Allotment Release Orders (SAROs) and Notices of Cash Allocation (NCAs). This innovation marks the first time a government agency in the Philippines has used blockchain technology to track and manage the national budget.
The system operates on the Lumen component of the Blockchain-as-a-Service (BaaS) solution provided by BayaniChain and ExakIT Services. The Department of Budget and Management’s (DBM) internal Action Document Releasing System (ADRS) is integrated with a blockchain gateway built by local blockchain firm BYC. This gateway converts internal budget documents into blockchain-compatible formats, which are then filtered by the Prismo Protocol to determine which information is suitable for public disclosure.
Once approved, document hashes are inscribed on the Polygon blockchain, ensuring immutability and public verifiability. Users can retrieve budget documents dating back to 2024 by scanning QR codes or conducting manual searches based on various document details.
The blockchain-based platform addresses the growing concern around deepfake technology and fraudulent document creation. By recording cryptographic hashes (digital fingerprints) of key budget documents, the system creates an immutable, tamper-proof audit trail accessible to citizens, auditors, and journalists for real-time verification without exposing the full contents of sensitive documents.
In addition to blockchain, the government uses complementary technologies such as Artificial Intelligence (AI) and Satellite Imaging to enhance transparency and monitoring. AI helps detect anomalies and potential fraud by analysing transaction patterns and document authenticity, including guarding against AI-generated deepfakes and falsifications. Satellite imaging provides an independent, external verification layer to monitor projects and expenditures, ensuring that budgeted infrastructure or development initiatives correspond with real-world progress.
The implementation of this blockchain-based platform reinforces the Philippine government's intention to harness digital tools to reinforce fiscal accountability and foster public trust in governance. This initiative builds upon earlier ambitions from 2018 and aligns with the DBM's "INVISIBLE Government" vision, focusing on secure, streamlined, and digitally integrated public services. The vision identifies blockchain technology as a foundational element, aligning with principles such as Zero Trust.
[1] BayaniChain. (2023). DBM Blockchain Platform. Retrieved from https://www.bayanichain.com/dbm [2] ExakIT Services. (2023). DBM Blockchain Platform. Retrieved from https://exakit.com/dbm-blockchain-platform [3] DBM. (2023). Blockchain Platform for Budget Documents. Retrieved from blockchain.dbm.gov.ph [4] DBM. (2023). Project Marissa. Retrieved from www.dbm.gov.ph/projectmarissa [5] The Manila Times. (2023). DBM Launches Blockchain Platform for Budget Documents. Retrieved from https://www.manilatimes.net/2023/07/30/business/business-top/dbm-launches-blockchain-platform-for-budget-documents/994327
- The Philippine government's Project Marissa, a blockchain-based platform for budget documents, utilizes blockchain technology to create an immutable, tamper-proof audit trail for key financial documents like SAROs and NCAs.
- The DBM's blockchain-based platform, accessible at blockchain.dbm.gov.ph, also integrates with AI and Satellite Imaging to fortify transparency and monitoring, safeguarding against deepfakes and fraudulent activities in public finance management.
