Gov’t updates budgetary regulation to advance ‘Smart Finance’

[ Photo: Renato Marques ]

The government is updating its finance rules so it can switch to a new all-digital system for handling public money.

The Executive Council announced yesterday that it has finalized amendments to Administrative Regulation No. 2/2018, paving the way for the official launch of the “Smart Finance” digital system on January 1, 2026.

Officials say this change is needed so the system can be used legally and properly in day-to-day government financial work.

According to officials, the revised regulation supports dematerialization by giving electronic securities, payment orders, and requisitions the same legal status as paper documents.

At a press conference held yesterday at the government headquarters, Wong Sio Chak, spokesperson for the Executive Council and Secretary for Administration and Justice, outlined the key changes brought by the new regulation.

Emphasizing the need to adapt legislation to enable full system operation in day-to-day government financial work, Wong said, “Despite the fact that this system is already equipped with all the conditions for its full operation, it is imperative to make adjustments to the current legislation […] prior to its official use.”

He also noted that certain fund appropriation requests “are simplified,” including “reducing unnecessary stages of appraisal and authorization,” to speed up processing times while optimizing resource use.

Moreover, the amendment updates outdated form names and terminology to better suit the electronic workflow, ensuring the wording in the law matches the reality of digital management and how the “Smart Finance” system actually operates.

Ho Silvestre In Mui, acting director of the Financial Services Bureau (DSF), elaborated on the system’s handling of expense reimbursements and advance loan programs for businesses.

As explained by Ho, this allows faster payment workflows. She described a new online registration process where banks provide “the supplier department and business account information […] through electronic channels.”

This replaces the old process of preparing settlement documents, sending them back and forth, and requiring suppliers to visit departments to get paid, which Ho said will reduce workload, speed up payments, and benefit many industrial and commercial enterprises.

“If the industrial and commercial enterprise has already registered […] the funds can be directly transferred,” she said.

The regulation will take effect alongside the system’s launch on January 1, 2026.