Philippine Public Fiscal Administration by Daisy T. Besing (MPA)
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.
Fiscal administration -systems, -structures, -processes, -Officials and personnel, - and the policy environment governing intergovernmental, and inter-local fiscal relations
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
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.
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.
Fiscal administration 1988- Value Added Tax was introduced and replaced a complicated sales tax structure. 1997 - Asias 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.
FISCAL ADMINISTRATION OVERVIEW- ZEROS IN ON THE MANAGEMENT OF FINANCIALRESOURCES AND THOSE ACTIVITIES AND OPERATIONS TOGENERATE REVENUE, MAKE THOSE AVAILABLE, AND SEE TO ITTHAT FUNDS ARE WISEFULLY, LAWFULLY, EFFECTIVELY ANDEFFICIENTLY SPENT.-THE ADMINISTRATION OF FINANCES IS AN INTRINSICCOMPONENT OF MANAGEMENT RESPONSIBILITY.- THERE IS AN INTIMATE LINKAGE BETWEEN ADMINISTERINGAND FUNDING.- AN ADMINISTRATIVE ACT HAS FINANCIAL IMPLICATIONS. Fiscal administration
PHILIPPINE PUBLIC FISCAL ADMINISTRATION OVERVIEW A DECISION TO INCREASE TAXES INCREASES REVENUE OF GOVERNMENTTO IMPLEMENT SOCIAL AMELIORATION PROGRAM CREATESA CHARGE ON REVENUE EARNED WHILE AT THE SAME TIME DISTRIBUTES AND DISPERSES SOCIAL BENEFITS.
FISCAL ADMINISTRATION ORGANIZING TOP MANAGEMENT LEVEL (INTERESTED IN IT) MIDDLE MANAGEMENT (DEEPLY INVOLVED IN IT) RANK AND FILE(AFFECTED BY WHATEVER RESULTS FROM IT)
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
Fiscal administration (Offices/agencies)CONGRESSDEPARTMENT OF FINANCE (DOF)DEPARTMENT OF BUDGET AND MANAGEMENTCOMMISSION ON AUDITDEPARTMENT OF INTERIOR AND LOCAL GOV’TOFFICE OF THE PRESIDENT (OPBureaus: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 CorporationsInsurance 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
FISCAL CONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROLTHROUGH 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
REPUBLIC ACT NO. 7160 AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991SEC. 315. SUBMISSION OF DETAILED STATEMENTS OF INCOMEAND EXPENDITURES. (A) ON OR BEFORE THE FIFTEENTH (15TH)DAY OF JULY OF EACH YEAR, LOCAL TREASURERS SHALLSUBMIT TO THEIR RESPECTIVE LOCAL CHIEF EXECUTIVES ACERTIFIED STATEMENT COVERING THE INCOME ANDEXPENDITURES OF THE PRECEDING FISCAL YEAR, THE ACTUALINCOME AND EXPENDITURES OF THE FIRST TWO (2) QUARTERSOF THE CURRENT YEAR, AND THE ESTIMATED INCOME AND EXPENDITURES FOR THE LAST TWO (2) QUARTERS OF THE CURRENT YEAR.
REPUBLIC ACT NO. 7160 AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991SEC. 353. THE OFFICIAL FISCAL YEAR.THE OFFICIAL FISCAL YEAR OF LOCAL GOVERNMENTUNITS SHALL BE THE PERIOD BEGINNING WITH THEFIRST DAY OF JANUARY AND ENDING WITH THE THIRTY-FIRST DAY OF DECEMBER OF THE SAME YEAR.
REPUBLIC ACT NO. 7160 AN ACT PROVIDING FOR A LOCAL GOVERNMENT CODE OF 1991SEC. 354. ADMINISTRATIVE ISSUANCES;BUDGET OPERATIONS MANUAL.THE SECRETARY OF BUDGET AND MANAGEMENT JOINTLYWITH THE CHAIRMAN OF THE COMMISSION ON AUDITSHALL, WITHIN ONE (1) YEAR FROM THE EFFECTIVITY OFTHIS CODE, PROMULGATE A BUDGET OPERATIONS MANUALFORLOCAL GOVERNMENT UNITS TO IMPROVE ANDSYSTEMATIZE METHODS, TECHNIQUES, AND PROCEDURESEMPLOYED IN BUDGET PREPARATION,AUTHORIZATION, EXECUTION, AND ACCOUNTABILITY.
FISCAL CONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROLTHROUGH 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
FISCAL CONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROLTHROUGH 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.
FISCAL CONTROL MECHANISMS (FOUR JUSTIFICATIONS FOR EXPENDITURE CONTROLTHROUGH 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.
PHILIPPINE PUBLIC FISCAL ADMINISTRATIONTHE BUDGET PHILIPPINE NATIONAL BUDGETThe National Budget represents theestimate of expected income andprojected expenditures over a period oftime referred to as the fiscal year.(1) to spend for its programs and projects(2) where the money will come from
PHILIPPINE PUBLIC FISCAL ADMINISTRATIONTHE PHILIPPINE BUDGETARY PROCESSSSection 22, Article VII of the 1987 Constitutionsets the tone for the budgetary process.Under this Article, the President submits toCongress within thirty days from the opening ofevery regular session, a financial plan ofexpenditures and sources of financing, includingreceipts from existing and proposed revenuemeasures as basis for a general appropriationsbill.
FIVE MAJOR PHASES IN THE BUDGET PROCESS (UBOM)1. BUDGET PREPARATION 2. BUDGET AUTHORIZATION 3. BUDGET REVIEW 4. BUDGET EXECUTION5. BUDGET ACCOUNTABILITY Fiscal administration
FUNCTIONS OF LOCAL OFFICIALS IN L.F.A LOCAL CHIEF EXEC. LOCAL SANGGUNIAN- Executive Direction and -Taxing AuthorityControl - Enactment of Policies,-Licensed and Issuing of Implementing Rules andPermits 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
SOURCES OF INCOME OF LGUS EXTERNAL INTERNAL1.Internal Revenue 1.Taxes, Fees, and ChargesAllotment (IRA) 2.Income derived from the2.Share from the Utilization Investments, privatized andof national Wealth Development Enterprises,3.Grants and Donations and Inter-Local4.Domestic Loans Government Cooperation5.Credit-Financing Schemes Fiscal administration
II.LEGAL BASIS FOR LOCAL FISCAL ADMINISTRATION 1987 PHILIPPINE CONSTITUTIONSECTION 2 Article X: “The territorial and political subdivisions shall enjoy local Autonomy.” REGION PROVINCE CITY MUNICIPALITY BARANGAY Fiscal administration
the share of each province, city or municipality shall becetermined on the basis of the ff. Formula (Sec. 285, RA 7160)-PROVINCES: 23, 81 PROVINCES-CITIES: 23%12, POPULATION 50%LAND AREA 25%EQUALSHARING 25%-MUNICIPALITIES: 34%- 1,501 MUN.- BARANGAYS: 20%33,461 BARANGAYS
LOCAL TAXESPrepare Local Revenue Generation PlanConduct Public Consultations on Revenues measuresUpdate Local Code TaxesProvide Incentives to Tax CollectorsREAL PROPERTY TAXESEngage Participation of other StakeholdersComputerize records of Assessor’s and Treasures OfficeStrengthen tax collection enforcementConduct Tax Mapping Operations for the Real PropertyLOCAL BUSINESS TAXESUse info. from databases of other gov’t agenciesEstablish one stop shop for tax payments and business permitapplicationsConduct tax mapping – inventory of business Fiscal administration
FUNDS MAINTAIN BY LGUSA. GENERAL FUND- AVAILABLE FOR ANY PURPOSE TOWHICH THE LEGISLATIVE BODY MAYDECIDE TO APPLY IT.B. SPECIAL FUNDS B.1 SPECIAL EDUCATION FUND B.2 TRUST FUND - PRIVATE AND PUBLIC MONIESWHICH HAVE OFFICIALLY COME INTOPOSSESSION OF THE LOCALGOVERNMENT. Fiscal administration
BUDGETARY PROCESS AT THE LOCALGOVERNMENTFOUR 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
2012 Program 2013 Proposed Level Level Particulars Rank Rank (Php Billion) (Php Billion)DepEd (incl. MPBF and SBP) 238.8 1 292.7 1/ 1DPWH (incl. PSEPF and BSGC) 126.4 2 152.9 2/ 2DND (incl. MPBF and PGF) 108.1 3 121.6 3DILG (incl. MPBF and PGF) 99.8 4 121.1 4DA (incl. PSEPF and BSGC) 61.4 5 74.1 5DOH (incl. MPBF, PSEPF and BSGC) 45.8 7 56.8 6DSWD 48.8 6 56.2 7DOTC (incl. MPBF, PGF, PSEPF and BSGC) 34.7 8 37.1 3/ 8DOF (incl. MPBF and BSGC) 23.6 9 33.2 9DENR (incl. MPBF and PGF) 17.5 10 23.7 10Notes: Legend:1/ Gross of School Building Program MPBF- Miscellaneous Personnel Benefits Fund2/ Net of School Building Program SBP – School Building Program3/ The corporate funds of DOTC attached corporations PGF – Pension and Gratuity Fund (MIAA, MCIAA, CIAC and CAAP) amounts to P2.6B in2013 PSEPF – Priority Social and Economic Projects Fund BSGC – Budgetary Support to Government Corporations
REFERENCES:Public Administration in the PhilippinesRunning a Bureaucracyhttp://www.scribd.com/doc/37770745/Local-Fiscal-Administrationhttp://en.wikipedia.org/wiki/Department_of_Finance_%28Philippines%29http://www.gov.ph/2012/07/24/president-aquino-submits-p2-006-t-2013-empowerment-budget-to-congress/