BORACAY Island — Department of Information and Communications Technology (DICT) secretary Henry Aguda said the government will begin using blockchain and artificial intelligence (AI) to promote transparency and reduce corruption in public spending, describing the move as a “historic step toward a technology-powered clean government.”
Speaking at the 8th CXO Technology Summit in Shangrila Boracay, Aguda said the DICT has secured a grant from blockchain firm Polygon to pilot a system that will place the 2026 national budget on the blockchain.
“Corruption is a very big issue right now, and blockchain is being pitched as a possible technological solution to our behavioral problems,” Aguda said. “If we can put the budget on the blockchain, every amendment and every movement will be visible. You can’t erase it.”
Aguda said the pilot project is being implemented at no cost to the government, thanks to a grant from Polygon estimated between $5 million and $10 million.
The initiative, he explained, will start by placing the 2025 budget data on a test blockchain for demonstration purposes to the Senate before scaling up to the full 2026 budget cycle.
Under the plan, multiple agencies — including the Department of Budget and Management (DBM) and the Department of Public Works and Highways (DPWH) — will maintain their own blockchain systems, which will later be connected through a unified platform.
“The beauty of blockchain is its immutable nature,” Aguda said. “Once data is recorded, it cannot be tampered with. We’ll release it to the public for free.”
He also clarified that the government will not be locked in to a single vendor, saying the agreement with Polygon includes provisions that allow migration to other blockchain platforms at no cost.
AI as a watchdog against irregularities
Aguda said AI will complement the blockchain initiative by analyzing spending data and detecting anomalies in procurement, pricing, and project execution.
He cited a pilot effort at the DICT’s Government Information and Communications Bureau (GICB), where AI analyzed 172 contracts to identify pricing inefficiencies. The system found patterns that led to lower costs in subsequent service contracts.
“We fed all contracts into an air-gapped AI system and found inefficiencies that caused prices to drop significantly,” he said. “Imagine doing that across the national budget — AI could tell us if the pricing of a project is right or not.”
Aguda also revealed plans to use AI-powered drones and computer vision to verify government infrastructure projects, ensuring that public funds are being used properly.
“With AI, you can scan a building using drones and confirm if the amount we paid matches what was actually built,” he said. “This is how AI and blockchain together can eliminate corruption.”
Aguda said these digital reforms reflect the DICT’s goal to modernize governance and restore public trust through technology.
“Let’s prove to the Philippines once and for all what we already know growing up — technology can transform lives,” he said. “This is our chance to transform the narrative of our country.”
