IS THE ACT OF MANAGING INCOMING AND
OUTGOING MONETARY TRANSACTIONS AND
BUDGETS FOR GOVERNMENTS, EDUCATIONAL
INSTITUTIONS, ...
Fiscal administration
-systems,
-structures,
-processes,
-Officials and personnel,
- and the policy environment governing
...
Fiscal administration
March 17, 1897 -Revolutionary Government was
founded in Naic, Cavite
- Dir. Baldomero Aguinaldo,
DOF...
Fiscal administration
1936 – DOF and Budget Commission
1949 – Central Bank of the Philippines was created
1970 – Minister ...
Fiscal administration
1980s- of inter-agency committees
-Investment Coordination Committee (ICC)
-Government Corporate Mon...
Fiscal administration
1988- Value Added Tax was introduced and replaced a
complicated sales tax structure.
1997 - Asia's N...
Fiscal administration
FISCALADMINISTRATION
OVERVIEW
- ZEROS IN ON THE MANAGEMENT OF FINANCIAL RESOURCES AND
THOSE ACTIVITI...
PHILIPPINEPUBLICFISCAL ADMINISTRATION
OVERVIEW
A DECISION TO INCREASE TAXES
TO IMPLEMENT SOCIAL AMELIORATION PROGRAM CREAT...
FISCALADMINISTRATION
ORGANIZING
TOP
MANAGEMENT
LEVEL
(INTERESTED IN IT)
MIDDLE MANAGEMENT
(DEEPLY INVOLVED IN IT)
RANK AND...
FISCALADMINISTRATION
ORGANIZING
THE PRINCIPALAGENCIES TASKED WITHFISCAL FUNCTIONS:
- CONGRESS, ESPECIALLY THE LOWER HOUSE,...
Fiscal administration
(Offices/agencies)
CONGRESS
DEPARTMENT OF FINANCE (DOF)
DEPARTMENT OF BUDGET AND MANAGEMENT
COMMISSI...
PREVENT MISAPPROPRIATION OF FUNDS REQUIRES REVIEW AND
APPROVAL BY THE ADMINISTRATIVE OFFICIAL OF THE LINE OR
OPERATING AGE...
REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
SEC. 315. SUBMISSION OF DETAILED STATEMENTS OF ...
REPUBLIC ACT NO. 7160
AN ACT PROVIDING FOR A LOCAL
GOVERNMENT CODE OF 1991
SEC. 353. THE OFFICIAL FISCAL YEAR.
THE OFFICIA...
SEC. 354. ADMINISTRATIVE ISSUANCES;
BUDGET OPERATIONS MANUAL.
THE SECRETARY OF BUDGET AND MANAGEMENT JOINTLY WITH
THE CHAI...
CONTROL TO IMPLEMENT PROSPECTIVE POLICY PROACTIVE
ADMINISTRATION INHIBITS GOVERNMENTAL UNITS FROM
DIRECTLY TRANSACTING AND...
ENSURE THE WISDOM AND PROPRIETY OF EXPENDITURE CLAIMS
FOR PAYMENT FROM PUBLIC FUNDS, LEGALITY, PRUDENCE,
REASONABLENESS, T...
PREVENT DEFICITS FISCAL SUPERVISION AND CONTROL MAY
BE USEFUL BUT SHOULD NOT UNDULY INTERFERE WITH
AGENCY PREROGATIVE TO C...
PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE BUDGET
PHILIPPINE NATIONAL BUDGET
The National Budget represents the estimate of...
PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE PHILIPPINE
BUDGETARY PROCESSS
Section 22, Article VII of the 1987 Constitution s...
STAGES
1.Budget Preparation
2.Budget Authorization
3.Budget Implementation
4.Budget Accountability
PHILIPPINE PUBLIC FISCA...
Fiscal administration
FIVE MAJOR PHASES IN THE BUDGET PROCESS (UBOM)
1. BUDGET PREPARATION
2. BUDGET AUTHORIZATION
4. BUDG...
Fiscal administration
FUNCTIONS OF LOCAL OFFICIALS IN L.F.A
LOCAL CHIEF EXEC.
- Executive Direction and
Control
-Licensed ...
Fiscal administration
SOURCES OF INCOME OF LGUS
EXTERNAL
1. Internal Revenue Allotment
(IRA)
2. Share from the Utilization...
Fiscal administration
II.LEGAL BASIS FOR LOCAL FISCAL
ADMINISTRATION
1987 PHILIPPINE CONSTITUTION
SECTION 2 Article X: “Th...
the share of each province, city or municipality shall be cetermined on
the basis of the ff. Formula (Sec. 285, RA 7160)
-...
Fiscal administration
LOCAL TAXES
Prepare Local Revenue Generation Plan
Conduct Public Consultations on Revenues measure...
Fiscal administration
FUNDS MAINTAIN BY LGUS
A. GENERAL FUND
- AVAILABLE FOR ANY PURPOSE TO WHICH THE
LEGISLATIVE BODY MAY...
Fiscal administration
BUDGETARY PROCESS AT THE LOCAL
GOVERNMENT
FOUR BASIC STEPS:
(1) BUDGET PREPARATION
(2) BUDGET AUTHOR...
PARTICULARS
Levels (Php Billion) Percent Share Increase/(Decrease)
2012 2013 2012 2013
Amount Percent
Prog. Proposed Prog....
Particulars
2012 Program 2013 Proposed
Level
Rank
Level
Rank
(Php Billion) (Php Billion)
DepEd (incl. MPBF and SBP) 238.8 ...
REFERENCES:
Public Administration in the Philippines
Running a Bureaucracy
http://www.scribd.com/doc/37770745/Local-Fiscal...
Fiscal Administration by Theresa
Fiscal Administration by Theresa
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Fiscal Administration by Theresa

  1. 1. IS THE ACT OF MANAGING INCOMING AND OUTGOING MONETARY TRANSACTIONS AND BUDGETS FOR GOVERNMENTS, EDUCATIONAL INSTITUTIONS, NONPROFIT ORGANIZATIONS, AND OTHER PUBLIC SERVICE ENTITIES. Fiscal administration
  2. 2. Fiscal administration -systems, -structures, -processes, -Officials and personnel, - and the policy environment governing intergovernmental, and inter-local fiscal relations
  3. 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. 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. 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. 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. 7. Fiscal administration FISCALADMINISTRATION 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.
  8. 8. PHILIPPINEPUBLICFISCAL ADMINISTRATION OVERVIEW A DECISION TO INCREASE TAXES TO IMPLEMENT SOCIAL AMELIORATION PROGRAM CREATES A CHARGE ON REVENUE EARNED WHILE AT THE SAME TIME DISTRIBUTES AND DISPERSES SOCIAL BENEFITS. INCREASES REVENUE OF GOVERNMENT
  9. 9. FISCALADMINISTRATION ORGANIZING TOP MANAGEMENT LEVEL (INTERESTED IN IT) MIDDLE MANAGEMENT (DEEPLY INVOLVED IN IT) RANK AND FILE (AFFECTED BY WHATEVER RESULTS FROM IT)
  10. 10. FISCALADMINISTRATION ORGANIZING THE PRINCIPALAGENCIES TASKED WITHFISCAL FUNCTIONS: - CONGRESS, ESPECIALLY THE LOWER HOUSE, -DEPARTMENTOF FINANCE -DEPARTMENTOF BUDGETAND MANAGEMENT -COMMISSIONON AUDIT
  11. 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. 12. 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 FISCALCONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL THROUGH THE BUDGET)
  13. 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. 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. 15. 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. REPUBLIC ACT NO. 7160 AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991
  16. 16. 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 FISCALCONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL THROUGH THE BUDGET)
  17. 17. 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. FISCALCONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL THROUGH THE BUDGET)
  18. 18. 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. FISCALCONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROL THROUGH THE BUDGET)
  19. 19. PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE 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. 20. PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE 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.
  21. 21. STAGES 1.Budget Preparation 2.Budget Authorization 3.Budget Implementation 4.Budget Accountability PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE PHILIPPINE BUDGETARY PROCESSS
  22. 22. Fiscal administration FIVE MAJOR PHASES IN THE BUDGET PROCESS (UBOM) 1. BUDGET PREPARATION 2. BUDGET AUTHORIZATION 4. BUDGET EXECUTION 5. BUDGET ACCOUNTABILITY 3. BUDGET REVIEW
  23. 23. Fiscal administration FUNCTIONS OF LOCAL OFFICIALS IN L.F.A LOCAL CHIEF EXEC. - Executive Direction and Control -Licensed and Issuing of Permits LOCAL SANGGUNIAN -Taxing Authority - Enactment of Policies, Implementing Rules and 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
  24. 24. Fiscal administration SOURCES OF INCOME OF LGUS EXTERNAL 1. Internal Revenue Allotment (IRA) 2. Share from the Utilization of national Wealth 3. Grants and Donations 4. Domestic Loans 5. Credit-Financing Schemes INTERNAL 1. Taxes, Fees, and Charges 2. Income derived from the Investments, privatized and Development Enterprises, and Inter-Local Government Cooperation
  25. 25. Fiscal administration II.LEGAL BASIS FOR LOCAL FISCAL ADMINISTRATION 1987 PHILIPPINE CONSTITUTION SECTION 2 Article X: “The territorial and political subdivisions shall enjoy local Autonomy.” PROVINCE BARANGAY REGION MUNICIPALITY CITY
  26. 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. 27. Fiscal administration 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
  28. 28. Fiscal administration 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.
  29. 29. Fiscal administration 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
  30. 30. PARTICULARS Levels (Php Billion) Percent Share Increase/(Decrease) 2012 2013 2012 2013 Amount Percent Prog. Proposed Prog. Proposed Economic Services 439.0 511.1 24.2 25.5 72.1 16.4 Social Services 613.4 698.8 33.8 34.8 85.4 13.9 Defense 87.2 89.7 4.8 4.5 2.5 2.9 General Public Services 320.3 346.1 17.6 17.3 25.7 8.0 Net Lending 23.0 26.5 1.3 1.3 3.5 15.2 Debt Service 333.1 333.9 18.3 16.6 0.8 0.2 Total 1,816.0 2,006.0 100.0 100.0 190.0 10.5
  31. 31. Particulars 2012 Program 2013 Proposed Level Rank Level 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
  32. 32. 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/

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