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Pres. Duterte orders adoption of digital payments for gov’t disbursements, collections

In the hopes of faster and more efficient transactions in government offices, President Duterte has just now ordered all government offices to adopt digital payments for the use of reimbursements and collections.

Executive Order (EO) No.170, signed by the president on May 12, 2022, mandates that all Covered Agencies utilize a safe and efficient digital mode of disbursement for the payment of goods, services, and the distribution of financial assistance, salaries, wages, allowances, and other compensations.


Image Credit: Pcoo

EO No. 170 also mandates that they should offer a digital mode of collecting payments for taxes, fees, tolls, and other charges. The Covered Agencies under this EO include all departments and agencies of the government which include state universities and colleges, government-owned or government-controlled corporations, and as well LGUs.

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The EO further states that Covered Agencies are allowed to disburse funds directly to respective accounts, use facilities of Government Servicing Banks such as Advice to Debit Account or Electronic Fund Transfers, and are responsible for preparing the necessary details and payment instructions.

Gcash • Pres. Duterte Orders Adoption Of Digital Payments For Gov'T Disbursements, Collections

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Furthermore, the EO states that all Covered Agencies will need to adopt a Business Continuity Plan in preparation for any calamity or emergency in which digital payment means may not be affected. In these circumstances, non-digital payment means may be considered in the exigency of service.

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Lastly, a Technical Working Group (TWG) shall be created in order “to provide guidance and promote cost-efficiency and transparency in the procurement of digital payment solutions”. The TWG likewise would be able to oversee and monitor the procurement of digital payment solutions by the Covered Agencies, resolve issues related to this EO, and consider the formulation of standard terms and conditions for Payment Service Providers. The members of the TWG will consist of representatives from the following institutions:

  • Department of Finance (DOF)
  • Department of Budget and Management (DBM)
  • Bureau of Treasury (BTr)
  • Bureau of Internal Revenue (BIR)
  • Government Procurement Policy Board (GPBB ) Technical Support Office
Eo 170

Image Credit: Pcoo

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The EO also states that all Covered Agencies will need to fully implement digital disbursements and digital collections within 6 months of the issuance of this EO. Otherwise, the implementation of digital payments may be subject to a tiered transition period that shall not exceed a period of 3 years from the Order’s issuance.

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These are just some highlights of the recent Executive Order 170, to read more of its details visit the Presidential Communications Operations Office (PCOO) website thru this link.

What do you think of the latest Executive Order? Let us know your thoughts down in the comments section!

Avatar for Val Jose Mendoza

Hi! I'm VJ Mendoza! Although I just finished my Bachelor's in Nursing, I've always loved tech and to just to get an idea of me, some things I like are anime, video games, sports such as basketball, volleyball and fencing.

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1 month ago

excellent work Mr. President!
being in the IT field, this is the way to go. cashless transactions are easier, more convenient and all you have to bring is your mobile phone.

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