Infrastructure projects to gain from National ID System

MANILA, Philippines — The savings from a more efficient delivery of public services with the implementation of a national identification system would help boost funding for vital government projects and programs, according to Philippine Statistics Authority head Lisa Bersales.

Bersales said the government could save an amount equivalent to two percent of the country’s gross domestic product (GDP) over a five-year period with the implementation of the National ID system.

The National ID System could help plug leakages from social protection programs of the government, including conditional cash transfers (CCT), unconditional cash transfers (UCCs), and benefits for senior citizens,  Bersales said.

“The Philippine Statistics Authority would be able to provide ID numbers and capture biometrics in five years for 107 million Filipino citizens and non-Filipino residents,” Bersales said during the recently concluded 51st Annual Meeting of the Board of Governors of the Asian Development Bank.

The Senate approved on third and final reading Senate Bill 1738 also known as “An Act establishing the Philippine Identification System” last month. The House of Representatives approved the same measure in September last year.

The National ID System is strongly advocated by the Department of Finance (DOF) and the Bangko Sentral ng Pilipinas (BSP), given its potential to boost efficiency of government services delivery.

BSP Governor Nestor Espenilla Jr. had said the launch of the National ID System supports the central bank’s aspiration for a more digital economy.

Espenilla added a National ID System would aid efforts toward financial inclusion, as it would help the marginalized sectors of the society gain access to formal channels of financial services.

To significantly catalyze a digital ecosystem, the BSP believes there must be a reliable national digital identification system to address persistent customer on-boarding issues due to lack of acceptable IDs and the highly inefficient paper-based KYC (know your customer) processes.

The envisioned national ID system is designed to ensure universal coverage, data integrity and security, and optimum utility and would serve as an enabling platform for the efficient delivery of a whole range of government and private sector services for all Filipinos.