The document discusses the sources of government revenues which include tax revenues, non-tax revenues, borrowings from domestic and foreign sources, and withdrawals from available cash balances. It also defines key terms like tax, non-tax revenues, borrowings, and discusses the government agencies authorized to collect taxes and efforts to improve tax collection.

3. 1. Tax Revenues
2. Non-Tax Revenues such as fees
to be collected
3. Borrowings From Both
Domestic and Foreign Sources ; and
4. Withdrawals From Available Cash
Balance

4. What is Tax?
A tax is a compulsory contribution
mandated by law and exacted by the
government for public purpose.

5. What agencies are authorized to collect
taxes?
 The major tax collecting agencies of the national government are
the Bureau of Internal Revenue (BIR) and the Bureau of Customs
(BoC).
 BUREAU OF INTERNAL REVENUE regulates finance, taxation and
monetary policy. The Bureau collects internal revenue taxes, fees,
and charges, as well as enforces all forfeitures, penalties, and fines,
connected with tax matters for the government of the Philippines.
 BUREAU OF CUSTOMS supervise and control all import and export
cargoes, landed or stored in piers, airports, terminal facilities,
including container, yards and freight stations, for the protection of
government revenue. Exercise exclusive original jurisdiction over
seizure and forfeiture cases under the tariff and customs laws.

6. What are revenues and their major
classification?
REVENUES refer to all cash inflows of
the national government treasury
which are collected to support
government expenditures but do not
increase the liability of the national
government. Revenues consist of tax
and non-tax collections.

7. What is Tax Revenue?
is defined as the revenues collected from
taxes on income and profits, social security
contributions, taxes levied on goods and
services, payroll taxes, taxes on the
ownership and transfer of property, and
other taxes.

8. Tax Revenue include the following:
 INCOME TAXES derived from individuals, corporations and miscellaneous.
 PROPERTY TAXES derived from real property, property transfer, special
assessments, special education tax, stock transfers and miscellaneous.
 TAXES ON GOODS AND SERVICES derived from excises tax on imports, excises
tax on domestic articles, business and taxes licenses, franchise tax, motor
vehicle taxes and miscellaneous
 TAXES ON INTERNATIONAL TRADE AND TRANSACTIONS derived from import
duties and export premium duties, foreign exchange and miscellaneous
 OTHER TAXES derived from documentary stamp taxes, charges on forest
products, wharfage fees and charges, immigration tax, mining tax, community
tax, miscellaneous-Local Government Shares on Internal Revenue Collections
and miscellaneous-Local Government Shares in the Proceeds from the
Development and Utilization of the National Wealth

9. What is Non-Tax Revenue?
Non-tax revenues refer to all other
impositions or collections of the
government in exchange for services
rendered, assets conveyed, penalties
imposed, etc.

10. Non- Tax Revenues are the following:
OPERATING AND SERVICE INCOME derived from government
services, government business operations, interest, commissions,
insurance/fiduciary bond, premiums, rents, trading/production
and miscellaneous
-INCOME FROM PUBLIC ENTEPRISES/INVESTMENTS derived from
interest on loans, stocks dividends, interest on bonds, interest on
treasury bills/notes, interest on receivables, acceptances, and
discounted notes, gain on sale of acquired
assets/stocks/bonds/royalties, government share on toll fees and
casino earnings and miscellaneous

11. -MISCELLANEOUS INCOME derived from sale of
goods/merchandise confiscated, sale of scrap
construction materials, gain on foreign exchange,
contributions, inventory adjustments, sweepstakes, sale
of waste materials and miscellaneous.
-SALE OF ASSETS derived from public domain, fixed
assets, gain on sale of fixed assets, scrap of fixed assets,
intangible assets, investments/stocks/bonds, gain on sale
of stocks/investments/bonds
-GRANTS AND AIDS derived from foreign countries, from
other level of governments, and domestic

12. What are the desirable features of tax
system? (A generic tax principles)
A tax system should be a revenue
productive
Simple and easy to administer,
Equitable, and
Progressive

13. What are the government’s current effort to
improve tax collections?
 The national government has continuously expended an all-
out effort to strengthen its revenue-generating capability
through legislative and administrative reforms.
 Recently, the government came up with a comprehensive
measure to overhaul the tax system to bring in badly needed
revenues for the government.
 Called the Comprehensive Tax Reform Program (CTRP), the
new tax measure has three principal components, namely,
a) income tax reform;
b) excise tax reform; and,
c) fiscal incentives reform.

14. What is the privatization program?
The privatization program was launched by
the government in 1987 pursuant to
Proclamation NO. 50 to sell non-performing
assets (NPAS) of government financial ins-
titutions and government-owned and
controlled corporations transferred to the
national government. This program enables
the NG to divest itself of assets that would be
more productive in the hands of the private
sector.

15. What is Borrowings?
Borrowings refer to funds obtained from
repayable sources, such as loans secured
by the government from financial
institutions and other sources, both
domestic and foreign, to finance various
government projects and activities.

16. The government borrows to provide for
the requirements of capital projects and
to support priority programs and projects.
Relying solely on domestic resources will
limit government’s capability to provide
the needed support. Domestic resources
are insufficient to finance priority
programs and projects

17. What are Domestic Borrowings?
Domestic borrowings are funds
obtained from sources within the
country. Domestic borrowings of the
national government are usually made
through the auction of treasury bills,
notes and bonds to the public

18. What are Foreign Borrowings?
 Foreign borrowings, on the other hand, are funds
obtained from sources outside the country, such
as Asian Development Bank (ADB), International
Bank for Reconstruction Development (IBRD),
Overseas Economic Cooperation Fund (OECF),
etc. Foreign borrowings can be obtained through
loans secured from foreign financial institutions or
through the flotation of government securities in
the international market.

19. Why does the Government borrow?
The government borrows from any following reasons:
• To finance national government deficits
• To obtain foreign exchange
• To secure financing at more favorable terms than the
opportunity cost of revenues;
• To take advantage of benefits attached to the funds, e.g.
technology,
• To balance the timing of resources with the project
gestation and repayment of benefit

20. What is Withdrawal from Available
Cash Balance?
It is the amount collected and available for
immediate withdrawal. This balance
includes both Core and other Fidelity
Money Market Funds held in the account.
This balance does not include deposits
that have not cleared.