1. Patterns of
Philippine
Expenditure

2. xpenditure system is the
government’s fiscal arm in
producing, allocating and
distributing social goods and
services.
E

3. The Developmental Problems of
Developing Countries
Extreme class disparity
Low capital formation and investments
Inadequacy of revenue

4. Philippine Expenditure Policies
Redistribution of income and wealth and balanced
development.
Economic development.
Stability
Countryside development

5. Classification of Philippine Public
Expenditures
Level of
Government
• National
Government
• Local
Government
Nature of
Expense
• Current
Operating
Expenditures
• Capital
Expenditures

6. Classification of Philippine Public
Expenditures
Functional
Categories
• Economic
Development /
Services
• Social Development/
Services
• Defense
• General Public
Services
• Debt Services
Type of Funds
• General Fund
• Special Fund
• Bond Fund

7. Patterns of Governmental Expenditure
According to Percent Growth and Percent of
Gross Domestic Product (GDP)
0
5
10
15
20
25
30
35
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
% of GDP (%)
Percent Growth (%)

8. Expenditure Patterns According to Nature of
Expenses
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
1,400,000,000
1,600,000,000
Current Operating
Expenditures (MOOE, PS)
Capital Outlays
2010 (Actual)
2011 (Adjusted)
2012 (Proposed)

9. Expenditure Patterns of the National
Government According to Function
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2010 2011 2012 (Proposed)
Economic Services
Social Services
Defense
General Public Services
Debt Services

10. Conclusions
There is a constant increase in public expenditures caused by
continuous expansion and improvement of governments function and
services.
Urbanization, growing population and changing economic needs of
the people incur more expenses in the government.
The distribution of public expending in different sectors reflects the
priorities of every administration.
Different reduction measures such as streamlining of the bureaucracy
are implemented to reduce the budget deficit. However, the number of
employees continued to grow since the government’s function is
expanding.

11. Recommendations
Unnecessary spending should be eliminated so that
funds will be diverted to more important services.
Vigilant implementation of existing fiscal policies that will
result in the elimination of corrupt practices in the
government.
Strict monitoring of the spending practices of the
different operating units. This will make sure that only
lawful and important purchases and disbursements are
done.

12. An Evaluation of
Income and Expenditure
of the Government
for the Year 1997 – 2011

13. -400,000
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Total Income
Total Expenditures
Surplus (Deficit)

14. Fidel V. Ramos (1992 – 1997)

15. Fidel V. Ramos (1992 – 1997)
Budget surpluses are
experienced due to
substantial gains
from massive sale
of government
assets and strong
foreign
investments

16. Joseph Ejercito Estrada (1998 – 2000)

17. Joseph Ejercito Estrada (1998 – 2000)
Increasing financial
deficits occur during
the Estrada
administration due to
decrease in tax effort
and repayment of the
Ramos
administration’s debt
to contractors and
suppliers

18. Gloria Macapagal – Arroyo
(2001 – 2009)

19. Gloria Macapagal – Arroyo
(2001 – 2009)
Income and expenditure
are both increasing
and there are still
large fiscal deficits.
This occurrence is
attributed to
weakening of tax
effort and rising of
debt services due to
peso depreciation.

20. Benigno S. Aquino III
(2010 – 2011)

21. Benigno S. Aquino III
(2010 – 2011)
There is a significant
decrease on the deficit
since there is a
strengthening campaign
on tax collection. Fiscal
discipline to state
owned firms and anti-
corruption campaign
during Aquino’s
administration could be
credited.

22. Thank You!