Philippine Public Fiscal Administration by Daisy T. Besing (MPA)
1. Fiscal administration
IS THE ACT OF MANAGING
INCOMING AND OUTGOING
MONETARY TRANSACTIONS AND
BUDGETS FOR GOVERNMENTS,
EDUCATIONAL INSTITUTIONS,
NONPROFIT ORGANIZATIONS,
AND OTHER PUBLIC SERVICE
ENTITIES.
2. Fiscal administration
-systems,
-structures,
-processes,
-Officials and personnel,
- and the policy environment governing
intergovernmental, and inter-local fiscal
relations
3. Fiscal administration
March 17, 1897 -Revolutionary Government
was founded in Naic, Cavite
- Dir. Baldomero Aguinaldo,
DOF
1901- the Department of Finance and
Justice(CS)
- William Howard Taft
- Sec. Gregorio Araneta
1916 - Reorganization Act No. 2666
- DFJ split into two
4. Fiscal administration
1936 – DOF and Budget Commission
1949 – Central Bank of the Philippines was
created
1970 – Minister Cesar A. Virata was
appointed Secretary
1974- with the adoption of the parliamentary
form of government, the Department was
changed to a Ministry.
5. Fiscal administration
1980s- of inter-agency committees
-Investment Coordination Committee (ICC)
-Government Corporate Monitoring and
Coordinating Committee (GCMCC)
-1987-the Ministry of Finance was reverted to a
Department following the ratification of the 1987
Constitution which provided for a presidential form
of government.
6. Fiscal administration
1988- Value Added Tax was introduced and
replaced a complicated sales tax structure.
1997 - Asia's Newest Tiger
- National Government recorded a budget
surplus for the third consecutive year, and the
public sector generated its fiscal surplus since the
sector started to be monitored in 1985.
7. FISCAL ADMINISTRATION
OVERVIEW
- ZEROS IN ON THE MANAGEMENT OF FINANCIAL
RESOURCES AND THOSE ACTIVITIES AND OPERATIONS TO
GENERATE REVENUE, MAKE THOSE AVAILABLE, AND SEE TO IT
THAT FUNDS ARE WISEFULLY, LAWFULLY, EFFECTIVELY AND
EFFICIENTLY SPENT.
-THE ADMINISTRATION OF FINANCES IS AN INTRINSIC
COMPONENT OF MANAGEMENT RESPONSIBILITY.
- THERE IS AN INTIMATE LINKAGE BETWEEN ADMINISTERING
AND FUNDING.
- AN ADMINISTRATIVE ACT HAS FINANCIAL IMPLICATIONS.
Fiscal administration
8. PHILIPPINE PUBLIC FISCAL ADMINISTRATION
OVERVIEW
A DECISION TO INCREASE TAXES
INCREASES REVENUE OF GOVERNMENT
TO IMPLEMENT SOCIAL AMELIORATION PROGRAM CREATES
A CHARGE ON REVENUE EARNED WHILE AT THE SAME TIME
DISTRIBUTES AND DISPERSES SOCIAL BENEFITS.
9. FISCAL ADMINISTRATION
ORGANIZING
TOP
MANAGEMENT
LEVEL
(INTERESTED IN IT)
MIDDLE MANAGEMENT
(DEEPLY INVOLVED IN IT)
RANK AND FILE
(AFFECTED BY WHATEVER
RESULTS FROM IT)
10. FISCAL ADMINISTRATION
ORGANIZING
THE PRINCIPAL AGENCIES TASKED
WITH FISCAL FUNCTIONS:
- CONGRESS, ESPECIALLY THE LOWER
HOUSE,
-DEPARTMENT OF FINANCE
-DEPARTMENT OF BUDGET AND
MANAGEMENT
-COMMISSION ON AUDIT
11. Fiscal administration
(Offices/agencies)
CONGRESS
DEPARTMENT OF FINANCE (DOF)
DEPARTMENT OF BUDGET AND MANAGEMENT
COMMISSION ON AUDIT
DEPARTMENT OF INTERIOR AND LOCAL GOV’T
OFFICE OF THE PRESIDENT (OP
Bureaus:
Bureau of Internal Revenue (BIR)
Bureau of Customs (BOC)
Bureau of the Treasury (BTR)
Bureau of Local Government Finance (BLGF)
Offices:
Privatization and Management Office (PMO)
Agencies and Corporations
Insurance Commission (IC)
National Tax Research Center (NTRC)
Central Board of Assessment Appeal (CBAA)
Philippine Deposit Insurance Corporation (PDIC)
Philippine Export-Import Credit Agency (PHILEXIM)
Government Service Insurance System (GSIS)
Social Security System (SSS)
Public Estates Authority (PEA)
Cooperative Development Authority (CDA)
Regional Offices
12. FISCAL CONTROL MECHANISMS
(FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL
THROUGH THE BUDGET)
PREVENT MISAPPROPRIATION OF FUNDS
REQUIRES REVIEW AND APPROVAL BY THE
ADMINISTRATIVE OFFICIAL OF THE LINE OR
OPERATING AGENCY, OF ALL REQUESTS FOR
MONEY RELEASES AND BUDGETARY
ALLOTMENTS, VOUCHERS AND SIMILAR PAPERS
BEFORE PAYMENTS ARE MADE SO THAT
EXPENDITURES ARE IN ACCORDANCE WITH
POLICY AND LAW AND NOT IRREGULAR,
UNNECESSARY, EXCESSIVE, EXTRAVAGANT AND
UNCONSCIONABLE
13. REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
SEC. 315. SUBMISSION OF DETAILED STATEMENTS OF INCOME
AND EXPENDITURES
.
(A) ON OR BEFORE THE FIFTEENTH (15TH)
DAY OF JULY OF EACH YEAR, LOCAL TREASURERS SHALL
SUBMIT TO THEIR RESPECTIVE LOCAL CHIEF EXECUTIVES A
CERTIFIED STATEMENT COVERING THE INCOME AND
EXPENDITURES OF THE PRECEDING FISCAL YEAR, THE ACTUAL
INCOME AND EXPENDITURES OF THE FIRST TWO (2) QUARTERS
OF THE CURRENT YEAR, AND THE ESTIMATED INCOME AND
EXPENDITURES FOR THE LAST TWO
(2) QUARTERS OF THE CURRENT YEAR.
14. REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
SEC. 353. THE OFFICIAL FISCAL YEAR.
THE OFFICIAL FISCAL YEAR OF LOCAL GOVERNMENT
UNITS SHALL BE THE PERIOD BEGINNING WITH THE
FIRST DAY OF JANUARY AND ENDING WITH THE THIRTY-
FIRST DAY OF DECEMBER OF THE SAME YEAR.
15. REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
SEC. 354. ADMINISTRATIVE ISSUANCES;
BUDGET OPERATIONS MANUAL.
THE SECRETARY OF BUDGET AND MANAGEMENT JOINTLY
WITH THE CHAIRMAN OF THE COMMISSION ON AUDIT
SHALL, WITHIN ONE (1) YEAR FROM THE EFFECTIVITY OF
THIS CODE, PROMULGATE A BUDGET OPERATIONS MANUAL
FOR
LOCAL GOVERNMENT UNITS TO IMPROVE AND
SYSTEMATIZE METHODS, TECHNIQUES, AND PROCEDURES
EMPLOYED IN BUDGET PREPARATION,
AUTHORIZATION, EXECUTION, AND ACCOUNTABILITY.
16. FISCAL CONTROL MECHANISMS
(FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL
THROUGH THE BUDGET)
CONTROL TO IMPLEMENT PROSPECTIVE POLICY
PROACTIVE ADMINISTRATION INHIBITS
GOVERNMENTAL UNITS FROM DIRECTLY
TRANSACTING AND NEGOTIATING MONEY
MATTERS SINCE SUCH KIND OF TRANSACTION IS
OFFICIALLY CHANNELED THROUGH THE
DEPARTMENT OF BUDGET AND MANAGEMENT IN
THE FORM OF BUDGET ESTIMATES AS
ENDORSED BY THE PRESIDENT
17. FISCAL CONTROL MECHANISMS
(FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL
THROUGH THE BUDGET)
ENSURE THE WISDOM AND PROPRIETY OF
EXPENDITURE CLAIMS FOR PAYMENT FROM
PUBLIC FUNDS, LEGALITY, PRUDENCE,
REASONABLENESS, THE MORALITY OF THE
CLAIM OR CHARGE SHOULD BE ESTABLISHED. A
REVIEW OF EXISTING CONTRACTS AND
TRANSACTIONS SHOULD BE MADE.
18. FISCAL CONTROL MECHANISMS
(FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL
THROUGH THE BUDGET)
PREVENT DEFICITS FISCAL SUPERVISION AND
CONTROL MAY BE USEFUL BUT SHOULD NOT
UNDULY INTERFERE WITH AGENCY
PREROGATIVE TO CARRY OUT PROGRAMS
MANDATED BY THE CONSTITUTION AND THE
LAWS.
19. PHILIPPINE PUBLIC FISCAL ADMINISTRATIONTHE
BUDGET PHILIPPINE NATIONAL BUDGET
The National Budget represents the
estimate of expected income and
projected expenditures over a period of
time referred to as the fiscal year.
(1) to spend for its programs and projects
(2) where the money will come from
20. PHILIPPINE PUBLIC FISCAL ADMINISTRATIONTHE
PHILIPPINE BUDGETARY PROCESSS
Section 22, Article VII of the 1987 Constitution
sets the tone for the budgetary process.
Under this Article, the President submits to
Congress within thirty days from the opening of
every regular session, a financial plan of
expenditures and sources of financing, including
receipts from existing and proposed revenue
measures as basis for a general appropriations
bill.
22. FIVE MAJOR PHASES IN THE BUDGET PROCESS
(UBOM)
1. BUDGET PREPARATION
2. BUDGET AUTHORIZATION
3. BUDGET REVIEW
4. BUDGET EXECUTION
5. BUDGET ACCOUNTABILITY
Fiscal administration
23. FUNCTIONS OF LOCAL OFFICIALS IN
L.F.A
LOCAL CHIEF EXEC. LOCAL SANGGUNIAN
- Executive Direction and -Taxing Authority
Control - Enactment of Policies,
-Licensed and Issuing of Implementing Rules and
Permits Regulations
COMPOSITION OF LOCAL FINANCE CLUSTER
(Assessor; Accountant; Bidget Officer; Treasurer;
Planning & Development Officer)
-Income projections
-Recommendations on Tax/Revenues Measures
-Accounting of the Budget
Fiscal administration
24. SOURCES OF INCOME OF LGUS
EXTERNAL INTERNAL
1.Internal Revenue 1.Taxes, Fees, and Charges
Allotment (IRA) 2.Income derived from the
2.Share from the Utilization Investments, privatized and
of national Wealth Development Enterprises,
3.Grants and Donations and Inter-Local
4.Domestic Loans Government Cooperation
5.Credit-Financing Schemes
Fiscal administration
25. II.LEGAL BASIS FOR LOCAL FISCAL
ADMINISTRATION
1987 PHILIPPINE CONSTITUTION
SECTION 2 Article X: “The territorial and political subdivisions shall enjoy
local Autonomy.”
REGION
PROVINCE
CITY
MUNICIPALITY
BARANGAY
Fiscal administration
26. the share of each province, city or municipality shall be
cetermined on the basis of the ff. Formula (Sec. 285, RA 7160)
-PROVINCES: 23, 81 PROVINCES
-CITIES: 23%12, POPULATION 50%LAND AREA 25%EQUAL
SHARING 25%
-MUNICIPALITIES: 34%- 1,501 MUN.
- BARANGAYS: 20%33,461 BARANGAYS
27. LOCAL TAXES
Prepare Local Revenue Generation Plan
Conduct Public Consultations on Revenues measures
Update Local Code Taxes
Provide Incentives to Tax Collectors
REAL PROPERTY TAXES
Engage Participation of other Stakeholders
Computerize records of Assessor’s and Treasures Office
Strengthen tax collection enforcement
Conduct Tax Mapping Operations for the Real Property
LOCAL BUSINESS TAXES
Use info. from databases of other gov’t agencies
Establish one stop shop for tax payments and business permit
applications
Conduct tax mapping – inventory of business
Fiscal administration
28. FUNDS MAINTAIN BY LGUS
A. GENERAL FUND
- AVAILABLE FOR ANY PURPOSE TO
WHICH THE LEGISLATIVE BODY MAY
DECIDE TO APPLY IT.
B. SPECIAL FUNDS
B.1 SPECIAL EDUCATION FUND
B.2 TRUST FUND
- PRIVATE AND PUBLIC MONIES
WHICH HAVE OFFICIALLY COME INTO
POSSESSION OF THE LOCAL
GOVERNMENT.
Fiscal administration
29. BUDGETARY PROCESS AT THE LOCAL
GOVERNMENT
FOUR BASIC STEPS:
(1) BUDGET PREPARATION
(2) BUDGET AUTHORIZATION (3) BUDGET
IMPLEMENTATION
(4) BUDGET REVIEW
TYPES OF AUDIT
A. PRE-AUDIT
B. POST-AUDIT
Fiscal administration
33. 2012 Program 2013 Proposed
Level Level
Particulars
Rank Rank
(Php Billion) (Php Billion)
DepEd (incl. MPBF and SBP) 238.8 1 292.7 1/ 1
DPWH (incl. PSEPF and BSGC) 126.4 2 152.9 2/ 2
DND (incl. MPBF and PGF) 108.1 3 121.6 3
DILG (incl. MPBF and PGF) 99.8 4 121.1 4
DA (incl. PSEPF and BSGC) 61.4 5 74.1 5
DOH (incl. MPBF, PSEPF and BSGC) 45.8 7 56.8 6
DSWD 48.8 6 56.2 7
DOTC (incl. MPBF, PGF, PSEPF and BSGC) 34.7 8 37.1 3/ 8
DOF (incl. MPBF and BSGC) 23.6 9 33.2 9
DENR (incl. MPBF and PGF) 17.5 10 23.7 10
Notes: Legend:
1/ Gross of School Building Program MPBF- Miscellaneous Personnel Benefits Fund
2/ Net of School Building Program SBP – School Building Program
3/ The corporate funds of DOTC attached corporations PGF – Pension and Gratuity Fund
(MIAA, MCIAA, CIAC and CAAP) amounts to P2.6B in
2013 PSEPF – Priority Social and Economic Projects Fund
BSGC – Budgetary Support to Government
Corporations
34. REFERENCES:
Public Administration in the Philippines
Running a Bureaucracy
http://www.scribd.com/doc/37770745/Local-Fiscal-Administration
http://en.wikipedia.org/wiki/Department_of_Finance_
%28Philippines%29
http://www.gov.ph/2012/07/24/president-aquino-submits-p2-006-t-
2013-empowerment-budget-to-congress/
