STATE AND GOVERNMENT

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  • Based on analyzed data the budget for example of Dept. of Agri as a percent to the total budget is the same prior to and after devolution of agri services
  • STATE AND GOVERNMENT

    1. 1. CONCEPT OF STATE AND GOVERNMENT
    2. 2. According to James Garner, the STATE is a community of persons more or less numerous occupying a definite portion of territory completely free of external control and possessing an organized government to which a great body of inhabitants render habitual obedience.
    3. 3. S TATE VS. NATION
    4. 4. FOUR ESSENTIAL ELEMENTS OF STATE : 1. People 2. Territory 3. Sovereignty 4. Government
    5. 5. People refer to the inhabitants of the state. There is no strict requirement on their number, but they must be of sufficient number to be self-sufficing.
    6. 6. Territory is a fixed portion on the surface of the earth inhabited by the people of the state.
    7. 7. Sovereignty is the supreme anduncontrollable power inherent in a State.
    8. 8. 2 KINDS OF SOVEREIGNTY1. Legal- is the authority which has the power to issue final commands;2. 2. Political – is the power behind the legal sovereign, or the sum total of the influences that operate it.
    9. 9. Government is the instrument that provides mechanisms in determining, formulating, and implementing the policies of the state. It is the essential instrument or machinery of the state that carries out its will, purposes and objectives.
    10. 10. TWO FUNCTIONS OF GOVERNMENT 1. CONSTITUENT – Compulsory function 2. MINISTRANT- Discretionary function
    11. 11. ADMINISTRATIONRefers to thegroup of personsin whose handsthe reins of thegovernment areheld for the timebeing.
    12. 12. A. According to the F ORMS OF number of People GOVERNMENT who rule 1. MONARCHY 2. OLIGARCHY 3. DEMOCRACY
    13. 13. F ORMS OFGOVERNMENT1. FEDERAL B. According to2. UNITARY the relationship between the National & Local
    14. 14. F ORMS OF GOVERNMENT C. According to the status of those who hold the rein of1. CIVIL Government2. MILITARY
    15. 15. F ORMS OFGOVERNMENTD. According to the Relationship between the Executive & Legislature1. PARLIAMENTARY 2. PRESIDENTIAL
    16. 16. F ORMS OF GOVERNMENT E. OTHER FORMS 1. DESPOTIC 2. TOTALITARIAN 3. REPUBLICAN 4. CONSTITUTIONAL 5. DE JURE 6. DE FACTO 7. REVOLUTIONARY
    17. 17. LAW-MAKING, EXECUTE, IMPLEMENT, FORMULATION OF ENFORCE POLICIES INTERPRET LAWS, JUSTICEPRESIDENT, GOVERNOR, MEMBERS OF THE MAYOR, PUNONG HOUSE OF BARANGAY, SK REPRESENTATIVES, JUSTICES, JUDGES CHAIRMAN SENATORS, BOARD MEMBERS, COUNCILORS
    18. 18. PRINCIPLES GOVERNING THE OPERATIONS OF GOVERNMENTAL POWERS (3 BRANCHES) 1.SEPARATION OF POWERS 2. SYSTEM OF CHECK AND BALANCE 3.BLENDING OF POWERS
    19. 19. POLICE POWER is thepower of promoting thegeneral welfare byrestraining and regulatingthe use of liberty andproperty. Basis is the latinmaxim salus populi estsuprema lex (the generalwelfare is the supreme law)
    20. 20. EMINENT DOMAIN enables the State to acquire privateproperty upon payment of justcompensation for some intended public use.
    21. 21. TAXATION it means the State is able to demand from the members of society their proportionate share or contribution in the maintenance of the government.
    22. 22. INHERENT IN THE STATE
    23. 23. SIMILARITIES OF THE 3 FUNDAMENTAL POWERS NOT ONLY NECESSARY BUT INDISPENSABLE METHODS TO INTERFERE PRIVATE RIGHTS PRESUPPOSES AN EQUIVALENT COMPENSATION EXERCISED BY LEGISLATURE
    24. 24. National Government Highly Urbanized, Province Chartered, Independent CityComponent City Municipality Barangay Barangay
    25. 25. National Government REGIONCongressional District Congressional District Province Highly Urbanized, Chartered, Independent CityComponent City Municipality Barangay Barangay
    26. 26. 1 President of the Republic of the Philippines 229 Congressional/Legislative Districts 17 Regions 81 Provinces 33 Highly Urbanized Cities 5 Independent Component Cities 84 Component Cities 1,494 Municipalities 42,000 Barangays
    27. 27. IMPACT OF LOCAL DECENTRALIZATION ON THEECONOMIC GROWTH OF NORTHERN MINDANAO
    28. 28. Comparative Philippine and China Central and Local Government Share in Revenue and Expenditure The Philippines China (2007; in Million Pesos) (2004 ; 100M Yuan) Central* Local** Central LocalRevenue 1,096,875 234,760 14,503 11,893% to Total 82.37% 17.63% 54.90% 45.10%Expenditure 1,029,377 194,736 7,894 20,592% to Total 84.09% 15.91% 27.70% 72.30% Net of IRA of P146,591.95 million **Inclusive of IRA of P146,591.95 million Sources: Philippine Commission on Audit 2007 Financial Reports; National Bureau of Statistics of China
    29. 29. Philippine Central and Local GovernmentRevenue Breakdown (in percent) Central LocalTotal Revenue 82.37% 17.63%Tax Revenue* 93.08% 6.92%General Income Permits andLicenses 77.03% 22.97% Service Income 94.24% 5.76% Business Income 68.65% 31.35% Other Income 94.65% 5.35%Gain on Forex 100.00% 0.00% *Central-Net of IRA Source: Philippine Commission on Audit 2007 Financial Reports
    30. 30. General Functions of Local Governments The Philippines Run the Health and Social Welfare Systems Provide Agricultural and Fishery Support Solid Waste Management Local Business Development Small Infrastructure Construction and Development Tourism Development Social Forestry / Mining Sources: Country Report-United Nations Economic and Social Commission for Asia and the Pacific; Philippine Local Government Code
    31. 31. Local Government Revenue Sources The PhilippinesLocal Taxes such as: Business Tax Real Property Tax Transfer Tax Franchise Tax Printing and Publication Tax Amusement Tax Community TaxShare in National Taxes Internal revenue Allotment (IRA) representing 40% of internal revenuecollections based on the third preceding year (Regional distribution is as follows:Provinces 23%; Cities 23%; Municipalities 34%; and Barangays 20%Non-Tax Revenue Share in national wealth exploitation in their area Share in the earnings of government agencies or government-owned orcontrolled corporations engaged in the utilization and development of nationalwealth in their area based on the following: 1% of the gross sales or receipts ofthe preceding calendar year or 40% of mining taxes, royalties, forestry or fisherycharges and such other taxes, fees or charges including related surcharges,interests, or fines, whichever is higher Country Reports China and the Philippines-United Nations Sources: Economic and Social Commission for Asia and the Pacific
    32. 32. United States : Sources of State RevenueSource Percentage (US Average)General Sales Tax 23.5%Selective Sales Tax 10.9%Property Taxes 30.1%License and Other 8.2%FeesCorporate Income 4.7%TaxesTax Foundation Report : stateline.org Source:Individual Income 22.6%Taxes
    33. 33. LGU Income Generation• Region X - Northern Mindanao Php Millions• Total Province Cities Towns• 9,236 2,462 3,691 3,082 2006• 11,072 2,913 4,570 3,588 2007• 20% Growth Mostly due to IRA• IRA Dependency in 2006 = 82.6%• IRA Dependency in 2007 = 90.9%
    34. 34. Philippine LGU Total Income vs Central Govt. Expenditure per Region Local Government Total* Central Central P000 Income Government Government Expenditure Expenditure % to LG Total Income Grand Total 234,642,572.58 762,534,007.59 324.98% National Capital Region 46,778,401.48 560,070,716.35 1197.28% Region 1 11,410,059.53 14,371,248.27 125.95% CAR 6,223,710.33 7,499,513.73 120.50% Region 2 9,160,569.36 10,132,758.94 110.61% Region 3 20,888,920.59 21,590,013.29 103.36% Region 4 35,866,590.31 27,646,932.60 77.08% Region 5 10,993,973.34 15,101,341.54 137.36% Region 6 16,679,840.96 18,419,954.59 110.43% Region 7 15,555,455.12 14,027,680.75 90.18% Region 8 8,687,321.73 98,317,599.17 1131.74% Region 9 7,781,531.08 9,821,773.23 126.22% Region 10 11,300,406.23 11,512,490.21 101.88% Region 11 10,170,596.06 10,980,183.03 107.96% Region 12 8,285,249.49 8,623,777.18 104.09% Region 13 7,545,245.07 7,146,537.05 94.72% ARMM 7,354,701.68of IRA *Inclusive 8,753,883.18 119.02% Source: Figures are from the Philippine Commission on Audit 2007 Financial Reports
    35. 35. If A Federal State…• And with a Tax Effort of Efficiency of just 15%..• Total Region 10 Government Revenues would amount to P58 Billion…• 200% higher than what it is today
    36. 36. GROSS NORTHERN MINDANAO DOMESTIC PRODUCT• Current Prices, in Millions of Pesos• 2000 2003 2006 2010•• 124,524 197,101 277,269 389,624
    37. 37. Top Manufacturing Outfits in Northern Mindanao• Asia Brewery,• CATIMCO,• Coca-Cola,• Del Monte Phils.,• LKKS Manufacturing,• Nestle Phils.,• Phil Agro,• PICMW, Pilipinas• Kao,• RI Chemicals,• Mindanao Silicon,• STEAG State Power Inc• Elegant Chemical Alloy
    38. 38. AVERAGE FAMILY INCOME IN NORTHERN MINDANAO• IN YEAR 2000 CONSTANT PRICES• 2006 2009• 102,000 98,000• Poverty rate of Population in 2006: 43%
    39. 39. PHILIPPINES• INCOME BRACKET 2001 (%) 2010 (%)• Class AB 2 2• Class C 18 12• Class D 56 64• Class E 24 23• Despite the best years of GDP growth!
    40. 40. VIETNAM• INCOME BRACKET 1999 (%) 2010 (%)• Class AB 7 21• Class CD 31 55• Class EF 62 24
    41. 41. Results of PINATULO OR SUPERIORITY PRINCIPLE“WHAT DOES GDP HAVE TO DO WITH ME?”
    42. 42. GDP INDICATORSCOMPUTING PROGRESS FROM CORPORATE ACCOUNTS
    43. 43. A change of crew& a direction. WANTED!
    44. 44. Change.From superiorityto subsidiarity.From pinatulo topinatubo.
    45. 45. GDP = NATIONAL INCOME in the Philippines PinatuboPinatulo • Environment, households, Man-made assets =• Land, labor , capital = community income enterprise • Community++ = towns /• Enterprise ++ = cities industry • Towns/ / Cities = Regions• Industry++ = sector & Provinces• Sector++ = National Economy • Regions ++ = National Economy
    46. 46. RestoringFilipino dignity.
    47. 47. A STATE EXISTS SO THAT A NATION’S CHILDRENMAY GROW UP WITH DIGNITYSubsidiarity starts with the Individual
    48. 48. Trickle Down System• Or PINATULO has been around with us since the colonial period…• Independence merely Filipinized it but it is still Trickle Down or the Superiority Model…• Only substantial change is the shift towards Pinatubo or Subsidiarity• It is the SYSTEM that is incompetent, not the Filipino

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