The document discusses fiscal administration in the Philippines, outlining the government agencies and processes involved in public financial management. It describes the national and local budgeting systems, including the stages of budget preparation, authorization, implementation and accountability. Key aspects of local fiscal administration are also summarized such as revenue sources, legal basis, types of funds, and the local budgetary process.

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. Fiscal administration
-systems,
-structures,
-processes,
-Officials and personnel,
- and the policy environment governing
intergovernmental, and inter-local fiscal relations

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. 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. 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. 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. 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. 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. FISCALADMINISTRATION
ORGANIZING
TOP
MANAGEMENT
LEVEL
(INTERESTED IN IT)
MIDDLE MANAGEMENT
(DEEPLY INVOLVED IN IT)
RANK AND FILE
(AFFECTED BY WHATEVER
RESULTS FROM IT)

10. FISCALADMINISTRATION
ORGANIZING
THE PRINCIPALAGENCIES TASKED WITHFISCAL FUNCTIONS:
- CONGRESS, ESPECIALLY THE LOWER HOUSE,
-DEPARTMENTOF FINANCE
-DEPARTMENTOF BUDGETAND MANAGEMENT
-COMMISSIONON AUDIT

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. STAGES
1.Budget Preparation
2.Budget Authorization
3.Budget Implementation
4.Budget Accountability
PHILIPPINE PUBLIC FISCALADMINISTRATIONTHE PHILIPPINE
BUDGETARY PROCESSS

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. 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. 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. 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. 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. 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. 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. 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

32. 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

33. 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

34. 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/