This presentation address to finding the one function of Allocative efficiency as part of PEM objectives. In addtion, it has presented several research from Allen shick and collaboration the government expenditure in Indonesia and Malaysia with several exercise have been given to audience to understanding several practice concept.
Approaches and Techniques of Budgeting: The Philippine Settingethelvera
This document discusses different approaches and techniques to budgeting in the Philippine setting, including program budgeting (PB), planning programming budgeting system (PBBS), zero-based budgeting (ZBB), line-item budgeting (LIB), and medium-term expenditure framework (MTEF). It provides an overview of budgeting in the Philippines in 2009 and profiles reforms such as performance-based budgeting (PBBS), public expenditure management (PEM), and a unified accounts code structure (UACS) with a 2-tier budget approach. Quotes emphasize the importance of addressing deficits but not ignoring them, as well as bringing lasting change and overcoming obstacles to development.
Public Budgeting System and Expenditures PhilippinesKaren S.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and provides theories on budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget impacts a nation's fiscal health and economy. Budgeting theories from developed countries do not always apply to developing countries that face more constraints due to underdevelopment.
National Development and Revenue ExpenditureKaren S.
The document discusses public fiscal administration in the Philippines, including taxation, revenue, and expenditures at the national and local levels. It provides details on:
- The roles of the Bureau of Internal Revenue and Bureau of Customs in tax collection.
- Sources of revenue and financing for the national government, local governments, and public corporations through taxation, borrowing, and other means.
- The processes involved in public expenditures at different levels of government.
Distribution and Expenditures of Philippine National BudgetPat Reyes
The document provides an overview of the Philippine national budget process and key details of national budgets from 2011-2016. It discusses how the budget is formulated based on agency estimates and submitted to Congress for approval. It also outlines the budget execution process where funds are released and spent. Major allocations in recent budgets have gone to education, infrastructure, social services, and disaster response. The 2015 budget aimed to fund inclusive development through investments in poverty reduction, jobs, and growth while keeping the fiscal deficit below 2% of GDP.
The document discusses public fiscal administration and the national budgeting process in the Philippines. It provides information on key aspects of fiscal administration including budget formulation, implementation, evaluation and auditing. It also describes the national budget cycle including preparation, legislation, execution and accountability. Details are given on the budget preparation process, forms and contents of the national budget, budget amounts from 2010 to the proposed 2018 budget, and the legislative budget process in the Philippines Congress.
Government budgeting & expenditures issues & problemsLouie Medinaceli
The document summarizes the Philippine government's implementation of a medium-term expenditure framework (MTEF), also known as multi-year budgeting, to address limitations of its previous one-year budgeting system. The MTEF establishes three-year budget ceilings and baselines for government agencies to foster fiscal discipline, strategic prioritization of resources, and improved operational efficiencies. It also links the budget more closely to the country's medium-term development plan through a consultative planning process. Initial results suggest the MTEF is helping the Philippine government better manage its budget and expenditures over multiple years.
Approaches and Techniques of Budgeting: The Philippine Settingethelvera
This document discusses different approaches and techniques to budgeting in the Philippine setting, including program budgeting (PB), planning programming budgeting system (PBBS), zero-based budgeting (ZBB), line-item budgeting (LIB), and medium-term expenditure framework (MTEF). It provides an overview of budgeting in the Philippines in 2009 and profiles reforms such as performance-based budgeting (PBBS), public expenditure management (PEM), and a unified accounts code structure (UACS) with a 2-tier budget approach. Quotes emphasize the importance of addressing deficits but not ignoring them, as well as bringing lasting change and overcoming obstacles to development.
Public Budgeting System and Expenditures PhilippinesKaren S.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and provides theories on budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget impacts a nation's fiscal health and economy. Budgeting theories from developed countries do not always apply to developing countries that face more constraints due to underdevelopment.
National Development and Revenue ExpenditureKaren S.
The document discusses public fiscal administration in the Philippines, including taxation, revenue, and expenditures at the national and local levels. It provides details on:
- The roles of the Bureau of Internal Revenue and Bureau of Customs in tax collection.
- Sources of revenue and financing for the national government, local governments, and public corporations through taxation, borrowing, and other means.
- The processes involved in public expenditures at different levels of government.
Distribution and Expenditures of Philippine National BudgetPat Reyes
The document provides an overview of the Philippine national budget process and key details of national budgets from 2011-2016. It discusses how the budget is formulated based on agency estimates and submitted to Congress for approval. It also outlines the budget execution process where funds are released and spent. Major allocations in recent budgets have gone to education, infrastructure, social services, and disaster response. The 2015 budget aimed to fund inclusive development through investments in poverty reduction, jobs, and growth while keeping the fiscal deficit below 2% of GDP.
The document discusses public fiscal administration and the national budgeting process in the Philippines. It provides information on key aspects of fiscal administration including budget formulation, implementation, evaluation and auditing. It also describes the national budget cycle including preparation, legislation, execution and accountability. Details are given on the budget preparation process, forms and contents of the national budget, budget amounts from 2010 to the proposed 2018 budget, and the legislative budget process in the Philippines Congress.
Government budgeting & expenditures issues & problemsLouie Medinaceli
The document summarizes the Philippine government's implementation of a medium-term expenditure framework (MTEF), also known as multi-year budgeting, to address limitations of its previous one-year budgeting system. The MTEF establishes three-year budget ceilings and baselines for government agencies to foster fiscal discipline, strategic prioritization of resources, and improved operational efficiencies. It also links the budget more closely to the country's medium-term development plan through a consultative planning process. Initial results suggest the MTEF is helping the Philippine government better manage its budget and expenditures over multiple years.
Public finance refers to the revenue and spending of governments to achieve national objectives through a cycle of formulating fiscal policy, generating revenue from taxes and other sources, and expending funds through the national budget. The national budget allocation for 2011 in the Philippines totaled 1.645 trillion pesos, with the largest portions going to education, public works, and national defense. Government efforts to improve revenue include tax reforms and tighter spending controls under the 2011 budget.
This document summarizes the structure and profile of Philippine public debt from 1990 to 2009. It discusses the sources, categories, and maturity of domestic and foreign public debt. Domestic debt is dominated by treasury bills and bonds, with maturities lengthening over time. Foreign debt is primarily from commercial and multilateral creditors, denominated in US dollars and Japanese yen, and remains largely long-term. Both domestic and foreign debt levels increased substantially over this period relative to GDP.
The Constitutional and Legal Basis of Public Finance in the PhilippinesLym Relampagos Ongoy
Presentation Report for MPA 457 Public Fiscal Administration. Majority of the topic taken from the book of Secretary Leonor Magtolis Briones "Philippine Public Fiscal Administration".
Fiscal policy refers to a government's taxing and spending decisions. The document discusses the fiscal policies of past Philippine administrations. The Marcos administration focused on indirect taxes and infrastructure spending. The first Aquino administration reduced deficits through tax reform and a value added tax. The Ramos administration had surpluses from asset sales and foreign investment. The Arroyo administration enacted expanded VAT but debt peaked and infrastructure spending declined. The current Aquino administration faced deficits but raised GDP.
The government budget is a plan that estimates revenues and expenditures for government programs and projects for the fiscal year. It is prepared by the executive branch and must be approved by the legislative branch. The budget allocates funds for operations, salaries, capital projects, and debt repayment from sources like taxes and borrowings. It supports the national development plan through a multi-step process of preparation, authorization, implementation, and accountability.
Report for the subject: Fiscal Administration
Institution: Bulacan Agricultural State College
Program: Master of Arts in Education- Educational Management
Professor: Engr. Liberato B. Silverio
Year: 2018
Public borrowing is money that governments borrow to fund public spending and services. When government revenues from taxes are insufficient, governments take on debt through public borrowing to finance expenditures. This includes borrowing domestically from its own resources as well as externally from foreign countries. The Philippines has a significant amount of public debt, with over 10 trillion Philippine pesos in total debt as of 2020. A large portion of this is owed to foreign lenders like the World Bank and IMF, who provide loans to support development projects and address economic crises.
The document discusses the emergence of new public management and reinventing government ideas in the 1980s and 1990s. These ideas aimed to make government more efficient and cost-effective by applying private sector practices to the public sector. They emphasized making government more customer-oriented, decentralized, and business-like. Critics argued these approaches focused too much on customers rather than citizens. The document also outlines some of the key principles of new public management and reinventing government.
1) Public borrowing refers to a government legally obligating itself to repay principal and interest to debt holders. Public debt management establishes strategies to raise funds and achieve risk/cost objectives.
2) In the Philippines, the Development Budget Coordination Committee recommends the fiscal program and debt levels. Metrics like debt-to-GDP assess sustainability.
3) As of mid-2019, the Philippines' external debt maturity was mostly medium-long term. Public sector debt increased while private sector debt composition adjusted. Debt was largely dollar- and yen-denominated from major creditors like Japan.
The document discusses patterns of public expenditure in the Philippines from 2001-2011. It classifies expenditures according to level of government, nature, function, and type of funds. Charts show expenditure trends increasing as a percentage of GDP and outpacing revenue growth. Expenditures are primarily for economic and social services, with increasing operating costs and capital outlays. Conclusions note constant expenditure growth due to expanding government services and population. Recommendations include eliminating wasteful spending and increasing fiscal discipline.
The document compares public expenditure management (PEM) reforms in New Zealand and Australia. Both countries introduced reforms to improve aggregate fiscal discipline, allocation efficiency, and operational efficiency. New Zealand's reforms included establishing state-owned enterprises, abolishing permanent public sector tenure, enhancing transparency through the Public Finance Act, and the Fiscal Responsibility Act. Australia introduced a medium-term expenditure framework focusing on forward estimates, macroeconomic planning, and portfolio budgeting. Key similarities in the PEM reforms of both countries include increased transparency, devolution, contestability, and commitment to fiscal discipline.
This document outlines the Philippine government's budget preparation process which includes:
1) A budget call issued by the Department of Budget and Management to government agencies to submit their budget proposals.
2) Stakeholder engagement sessions held for agencies to discuss their proposals with civil society groups.
3) Technical budget hearings held for agencies to defend their proposals to DBM panels.
4) An executive review process where budget proposals are prioritized and approved by the President and Cabinet.
5) The approved budget is then presented to Congress for legislation into the annual budget law.
During the preparation phase, the Executive prepares the proposed National Budget. This is followed by the legislation phase where the Congress authorize the General Appropriations Act. In the execution phase, agencies utilize their approved budgets and during the accountability phase the executive phase, agencies utilize their approved, the executive monitor and evaluate the use of the budget
The document discusses the origins and theories of public borrowing and debt. It outlines different periods and schools of thought around public debt, from mercantilism and Adam Smith's criticisms of borrowing, to Keynes' theory of deficit financing. The document also examines development finance models and how borrowing from international organizations like the IMF and World Bank became prominent sources of funds for developing countries pursuing infrastructure and other development projects.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and explores theories of budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget is seen as having an impact on a country's fiscal health and economy. Challenges in developing countries include a lack of practical budgeting theory and the complications of budgeting in conditions of underdevelopment and poverty.
The document discusses the history and evolution of local government in the Philippines. It traces the roots of local government back to the Spanish colonial period and discusses the long tradition of centralized rule, from Spanish/American colonization up until the Marcos dictatorship in 1972. Key events that decentralized power included the 1991 Local Government Code passed under the Aquino administration, devolving services and increasing financial resources to LGUs. The Code aimed to promote local autonomy and address issues like poverty, inequality, and security through community participation and empowering LGUs to provide for basic needs and local development. Examples are given of notable achievements and initiatives that have resulted from the decentralization process.
The document discusses the national and local government budget processes in the Philippines. For the national government budget process, it describes the four phases: budget preparation, budget authorization, budget execution, and budget accountability. It provides details on the key documents, players, and steps involved in each phase. For the local government budget process, it similarly outlines the budget preparation and budget authorization phases, identifying the legal basis, key players, and emerging roles for civil society organizations in engaging with and providing inputs to the process at the local level.
The document discusses the four phases of the budget process:
1) Budget Preparation which occurs from January to July and involves developing budget parameters and proposals.
2) Budget Legislation from August to December where Congress debates and approves the budget through legislation.
3) Budget Execution from January to December which is when approved funds are released and agencies implement projects.
4) Budget Accountability also from January to December involves agencies reporting on financials and performance so the budget utilization can be assessed.
The document discusses the emergence of the concept of governance in development discourse in the 1990s. It was introduced by international institutions like the UN and World Bank as an alternative paradigm to address failures of previous development models. Governance goes beyond government to include citizens, institutions, and groups pursuing collective goals. It emphasizes principles like accountability, participation, transparency and the rule of law. The document outlines how governance and good governance are defined by different scholars and organizations and their relationship with development and poverty reduction.
The document discusses fiscal administration and the budget process in the Philippines. It covers:
1) Key aspects of fiscal administration including intergovernmental relations and the roles of agencies like Congress, the Department of Finance, and Commission on Audit.
2) Sources of funds for local governments including internal revenue allotments, shares of national wealth and taxes, and the formulas for allocating these funds.
3) Core budget concepts used by the Philippine government like the one-fund concept, balanced budgeting, and total resource budgeting. It also discusses the annual budget cycle.
This document provides an overview of public budgets. It begins by defining what a budget is, including that it is a formal estimate of required resources for a given time period. It then discusses different definitions of budgets provided by various scholars. The document outlines the key components of a budget as public expenditures and public revenues. It also discusses different types of budgets, including operating and development budgets. The document further examines classifications of public expenditures by categories, sectors, general objects, and programs/activities. Finally, it introduces the concept of the canon of public expenditures as rules or principles that governments must follow when incurring expenditures.
The document provides an overview of the UK and Northern Ireland public expenditure systems. The UK system is based on total managed expenditure, departmental expenditure limits, and annually managed expenditure. Northern Ireland's system derives from the Good Friday Agreement and involves setting strategic priorities and a budget through consultation. Departments then receive current and investment expenditure allocations, and spending is monitored through the year against the original budget plans.
Public finance refers to the revenue and spending of governments to achieve national objectives through a cycle of formulating fiscal policy, generating revenue from taxes and other sources, and expending funds through the national budget. The national budget allocation for 2011 in the Philippines totaled 1.645 trillion pesos, with the largest portions going to education, public works, and national defense. Government efforts to improve revenue include tax reforms and tighter spending controls under the 2011 budget.
This document summarizes the structure and profile of Philippine public debt from 1990 to 2009. It discusses the sources, categories, and maturity of domestic and foreign public debt. Domestic debt is dominated by treasury bills and bonds, with maturities lengthening over time. Foreign debt is primarily from commercial and multilateral creditors, denominated in US dollars and Japanese yen, and remains largely long-term. Both domestic and foreign debt levels increased substantially over this period relative to GDP.
The Constitutional and Legal Basis of Public Finance in the PhilippinesLym Relampagos Ongoy
Presentation Report for MPA 457 Public Fiscal Administration. Majority of the topic taken from the book of Secretary Leonor Magtolis Briones "Philippine Public Fiscal Administration".
Fiscal policy refers to a government's taxing and spending decisions. The document discusses the fiscal policies of past Philippine administrations. The Marcos administration focused on indirect taxes and infrastructure spending. The first Aquino administration reduced deficits through tax reform and a value added tax. The Ramos administration had surpluses from asset sales and foreign investment. The Arroyo administration enacted expanded VAT but debt peaked and infrastructure spending declined. The current Aquino administration faced deficits but raised GDP.
The government budget is a plan that estimates revenues and expenditures for government programs and projects for the fiscal year. It is prepared by the executive branch and must be approved by the legislative branch. The budget allocates funds for operations, salaries, capital projects, and debt repayment from sources like taxes and borrowings. It supports the national development plan through a multi-step process of preparation, authorization, implementation, and accountability.
Report for the subject: Fiscal Administration
Institution: Bulacan Agricultural State College
Program: Master of Arts in Education- Educational Management
Professor: Engr. Liberato B. Silverio
Year: 2018
Public borrowing is money that governments borrow to fund public spending and services. When government revenues from taxes are insufficient, governments take on debt through public borrowing to finance expenditures. This includes borrowing domestically from its own resources as well as externally from foreign countries. The Philippines has a significant amount of public debt, with over 10 trillion Philippine pesos in total debt as of 2020. A large portion of this is owed to foreign lenders like the World Bank and IMF, who provide loans to support development projects and address economic crises.
The document discusses the emergence of new public management and reinventing government ideas in the 1980s and 1990s. These ideas aimed to make government more efficient and cost-effective by applying private sector practices to the public sector. They emphasized making government more customer-oriented, decentralized, and business-like. Critics argued these approaches focused too much on customers rather than citizens. The document also outlines some of the key principles of new public management and reinventing government.
1) Public borrowing refers to a government legally obligating itself to repay principal and interest to debt holders. Public debt management establishes strategies to raise funds and achieve risk/cost objectives.
2) In the Philippines, the Development Budget Coordination Committee recommends the fiscal program and debt levels. Metrics like debt-to-GDP assess sustainability.
3) As of mid-2019, the Philippines' external debt maturity was mostly medium-long term. Public sector debt increased while private sector debt composition adjusted. Debt was largely dollar- and yen-denominated from major creditors like Japan.
The document discusses patterns of public expenditure in the Philippines from 2001-2011. It classifies expenditures according to level of government, nature, function, and type of funds. Charts show expenditure trends increasing as a percentage of GDP and outpacing revenue growth. Expenditures are primarily for economic and social services, with increasing operating costs and capital outlays. Conclusions note constant expenditure growth due to expanding government services and population. Recommendations include eliminating wasteful spending and increasing fiscal discipline.
The document compares public expenditure management (PEM) reforms in New Zealand and Australia. Both countries introduced reforms to improve aggregate fiscal discipline, allocation efficiency, and operational efficiency. New Zealand's reforms included establishing state-owned enterprises, abolishing permanent public sector tenure, enhancing transparency through the Public Finance Act, and the Fiscal Responsibility Act. Australia introduced a medium-term expenditure framework focusing on forward estimates, macroeconomic planning, and portfolio budgeting. Key similarities in the PEM reforms of both countries include increased transparency, devolution, contestability, and commitment to fiscal discipline.
This document outlines the Philippine government's budget preparation process which includes:
1) A budget call issued by the Department of Budget and Management to government agencies to submit their budget proposals.
2) Stakeholder engagement sessions held for agencies to discuss their proposals with civil society groups.
3) Technical budget hearings held for agencies to defend their proposals to DBM panels.
4) An executive review process where budget proposals are prioritized and approved by the President and Cabinet.
5) The approved budget is then presented to Congress for legislation into the annual budget law.
During the preparation phase, the Executive prepares the proposed National Budget. This is followed by the legislation phase where the Congress authorize the General Appropriations Act. In the execution phase, agencies utilize their approved budgets and during the accountability phase the executive phase, agencies utilize their approved, the executive monitor and evaluate the use of the budget
The document discusses the origins and theories of public borrowing and debt. It outlines different periods and schools of thought around public debt, from mercantilism and Adam Smith's criticisms of borrowing, to Keynes' theory of deficit financing. The document also examines development finance models and how borrowing from international organizations like the IMF and World Bank became prominent sources of funds for developing countries pursuing infrastructure and other development projects.
The document discusses public budgeting systems and expenditures from several perspectives. It defines a budget and explores theories of budgeting. It views the budget as an economic process of allocating resources, a political process of competition for limited resources, and an administrative process for planning, coordination and evaluation. The budget is seen as having an impact on a country's fiscal health and economy. Challenges in developing countries include a lack of practical budgeting theory and the complications of budgeting in conditions of underdevelopment and poverty.
The document discusses the history and evolution of local government in the Philippines. It traces the roots of local government back to the Spanish colonial period and discusses the long tradition of centralized rule, from Spanish/American colonization up until the Marcos dictatorship in 1972. Key events that decentralized power included the 1991 Local Government Code passed under the Aquino administration, devolving services and increasing financial resources to LGUs. The Code aimed to promote local autonomy and address issues like poverty, inequality, and security through community participation and empowering LGUs to provide for basic needs and local development. Examples are given of notable achievements and initiatives that have resulted from the decentralization process.
The document discusses the national and local government budget processes in the Philippines. For the national government budget process, it describes the four phases: budget preparation, budget authorization, budget execution, and budget accountability. It provides details on the key documents, players, and steps involved in each phase. For the local government budget process, it similarly outlines the budget preparation and budget authorization phases, identifying the legal basis, key players, and emerging roles for civil society organizations in engaging with and providing inputs to the process at the local level.
The document discusses the four phases of the budget process:
1) Budget Preparation which occurs from January to July and involves developing budget parameters and proposals.
2) Budget Legislation from August to December where Congress debates and approves the budget through legislation.
3) Budget Execution from January to December which is when approved funds are released and agencies implement projects.
4) Budget Accountability also from January to December involves agencies reporting on financials and performance so the budget utilization can be assessed.
The document discusses the emergence of the concept of governance in development discourse in the 1990s. It was introduced by international institutions like the UN and World Bank as an alternative paradigm to address failures of previous development models. Governance goes beyond government to include citizens, institutions, and groups pursuing collective goals. It emphasizes principles like accountability, participation, transparency and the rule of law. The document outlines how governance and good governance are defined by different scholars and organizations and their relationship with development and poverty reduction.
The document discusses fiscal administration and the budget process in the Philippines. It covers:
1) Key aspects of fiscal administration including intergovernmental relations and the roles of agencies like Congress, the Department of Finance, and Commission on Audit.
2) Sources of funds for local governments including internal revenue allotments, shares of national wealth and taxes, and the formulas for allocating these funds.
3) Core budget concepts used by the Philippine government like the one-fund concept, balanced budgeting, and total resource budgeting. It also discusses the annual budget cycle.
This document provides an overview of public budgets. It begins by defining what a budget is, including that it is a formal estimate of required resources for a given time period. It then discusses different definitions of budgets provided by various scholars. The document outlines the key components of a budget as public expenditures and public revenues. It also discusses different types of budgets, including operating and development budgets. The document further examines classifications of public expenditures by categories, sectors, general objects, and programs/activities. Finally, it introduces the concept of the canon of public expenditures as rules or principles that governments must follow when incurring expenditures.
The document provides an overview of the UK and Northern Ireland public expenditure systems. The UK system is based on total managed expenditure, departmental expenditure limits, and annually managed expenditure. Northern Ireland's system derives from the Good Friday Agreement and involves setting strategic priorities and a budget through consultation. Departments then receive current and investment expenditure allocations, and spending is monitored through the year against the original budget plans.
Public expenditure is incurred by governments across various economic sectors such as agriculture, infrastructure, and exports/imports. It includes economic overhead like transportation and utilities, as well as social overhead like hospitals and schools. Public expenditure is needed to develop agriculture and industry, provide public utilities, and transform economies as income levels increase according to Musgraves' theory. It must also respond to technological changes and employment needs through public works. When determining public expenditure, governments should follow principles like maximizing social benefits relative to costs, avoiding waste through economy, ensuring proper sanctioning of funds, adjusting spending based on needs and circumstances, and balancing the budget to avoid deficits.
The document shows the debt to GDP ratios of various countries from 2003 to 2011. Many European countries like Belgium, Greece, Italy, and Portugal saw their debt/GDP ratios rise sharply above 100% during this period. The United States also saw its debt/GDP ratio increase significantly but remain below 100%.
Why We So Bruk, Debt Public Forum, Carter Hall 12th June 2008Capri Caribbean
This document summarizes Jamaica's public debt levels and provides analysis of the causes and potential solutions. It finds that Jamaica's debt has risen to 147% of GDP, ranking it 4th among Caribbean nations. High debt service costs absorb over half of government revenue. The root cause is absorbing non-central government debt. Solutions analyzed include tax increases, changing the debt instrument mix, not absorbing other entities' debt, and increasing GDP growth. The document recommends tax reform for revenue, managing contingent risks, and spending on growth over debt repayment.
Vol5 LGU Budget And Expenditure Management Toolsrommer101
This document provides guidelines and tools for local governments in the Philippines for budget preparation, authorization, review, execution, and accountability. It discusses approaches for analyzing income and expenditure trends, formulating revenue estimates, setting expenditure ceilings, costing activities, and defining performance indicators. Forms and tables are provided for each stage of the budget process to guide analysis and ensure compliance with requirements.
The document discusses public expenditures by governments. It notes that public expenditures are reflected in national budgets and indicate a government's economic and social priorities. Developing countries tend to prioritize education spending to invest in human capital development. While public expenditures have increased due to factors like inflation, population growth, and infrastructure projects, they are necessary to support social services for large populations and address issues like peace and order. When evaluating public expenditures, both economic and social impacts should be considered, with priority given to programs that improve conditions for the poor masses and promote social justice.
Public expenditure by governments has increased over time due to various factors:
1. Population growth has led to increased spending on public services like schools, housing, and healthcare.
2. Defense spending has risen to protect countries from foreign threats, consuming a large portion of budgets.
3. The expansion of administrative systems with more departments and elections has grown public administration costs.
4. Economic development through infrastructure projects, industries, and programs has required significant government funding.
Dorotinsky public financial management trends and lessonsicgfmconference
This document discusses trends in public financial management (PFM) reforms. It outlines the objectives of PFM as macrofiscal discipline, strategic resource allocation, and technical efficiency. Popular reforms aim to change incentives to better meet these objectives by altering rules, roles, and information. Recent reforms have focused on budget formulation tools like capital budgets and performance budgets differently across countries based on income level. There is a need for PFM reforms to address real problems and be tailored to each country's circumstances and stage of development.
Government Reform: Lesson’s from Korean ExperienceDadang Solihin
This document summarizes a presentation given by Dr. Jin Park of the KDI School of Public Policy and Management on government reform in South Korea. The presentation covered four key topics: 1) the role of government in South Korea's early economic development, 2) government reform efforts after the 1997 Asian financial crisis, 3) how to reform the government, and 4) lessons learned from South Korea's experience with government reform.
Are public financial management reforms yielding results in the Region? - Dun...OECD Governance
This presentation was made by Duncan Last, IMF, at the 12th Annual Meeting of OECD-CESEE Senior Budget Officials held in Ljubljana, Slovenia, on 28-29 June 2016
The document discusses different classifications of public expenditures. It outlines Mrs. Hicks' classification which separates expenditures into defense, civil, and development. Defense expenditure includes costs for defense equipment and wages for armed, navy, and air forces. Civil expenditure maintains law and order and administration of justice. Development expenditure promotes growth in agriculture, industry, trade, transport, and communication.
Fiscal Policy trends in India: Since IndependenceKashyap Shah
The document discusses India's fiscal policy trends from post-independence to present day. It summarizes that early on, fiscal policy focused on stimulating growth and reducing inequality through high government expenditure and taxation. This led to budget deficits. Economic reforms since 1991 have focused on reducing deficits through tax cuts, expenditure reforms, and greater fiscal responsibility. The Fiscal Responsibility and Budget Management Act of 2003 aimed to further improve fiscal discipline.
This document defines financial administration and explains the budget cycle process in Malaysia. Financial administration involves planning, developing and implementing policies related to taxation, budgeting, spending, acquisition and accounting. It deals with how a government utilizes public funds to deliver services and manages revenue collection. The budget cycle in Malaysia refers to Budget 2010, and involves the executive branch proposing a budget that is then passed into law by the legislative branch. The process allows the government to forecast revenues and expenditures and set policy priorities through the annual budget.
The document summarizes key aspects of India's foreign trade policy for 2015-2020 related to legal framework and trade facilitation. It highlights several initiatives to support new exporters/importers including a hand-holding scheme. It also discusses efforts to streamline processes such as issuing electronic Importer-Exporter Codes, reducing documentation requirements, implementing a single window system, and enabling 24/7 customs clearance. Memorandums of understanding have been signed with states and agencies to share electronic realization certificate data and facilitate refunds.
BUDGET PROCESS OF THE PHILIPPINE NATIONAL GOVERNMENT, Report for PA1-Introduction to Public Administration, College of Public Administration - Tarlac State University
The document summarizes India's monetary policy. It discusses the goals of monetary policy as achieving low and stable inflation while promoting economic growth. It outlines the various interest rates set by the Reserve Bank of India and tools used to regulate money supply such as cash reserve ratio and statutory liquidity ratio. While monetary policy can help reduce inflation and stabilize the economy, it has limitations in predicting inflationary pressures and ensuring long-term growth. The document concludes by emphasizing the need for monetary policy to support agricultural growth, infrastructure development, and other priorities to ensure inclusive development.
1. This chapter discusses fiscal policy as a tool for stabilizing the economy through manipulating government spending and taxes.
2. It explores discretionary and automatic fiscal adjustments using the AD-AS model and covers problems like recognition lags that complicate fiscal policy effectiveness.
3. Evaluating fiscal policy involves examining standardized budgets that adjust for cyclical factors to determine if policy is expansionary or contractionary.
A study on budgetory control system conducted at hassan co operative milk pro...Projects Kart
The document discusses a study on the budgetary control system of Hassan Milk Union. [1] It aims to evaluate the existing budgetary system, compute and analyze variances for control and performance evaluation, and understand how budgets are prepared and variances are controlled. [2] The scope is the accounts department for fiscal year 2008-09. [3] Data was collected through interviews and company records. Budgetary control is discussed as an essential management tool for controlling costs and maximizing profits through planning, coordination, and comparing actuals to budgets.
13 tonia swetman session 13 2012 04 21 doa wanda forum presentationBikash Jaiswal
The document provides information on sustainable pricing for community services. It discusses developing a sustainable price that covers all costs of delivering, administering, monitoring and evaluating a service. Key factors for determining a sustainable price include identifying direct, indirect and capital costs. Methods for allocating indirect costs and calculating unit costs are also presented. The importance of financial monitoring, auditing and tracking costs over time to ensure ongoing sustainability is emphasized.
This document provides an agenda for the 2009 Federal Financial Policy Forum conference held from August 12-14, 2009 in Washington, DC. The three-day conference aimed to provide federal financial managers with best practices and innovations for improving financial management, reporting, and accountability. It featured keynote addresses on the future of federal financial management and managing budgets in a tough economy. Sessions covered topics such as linking budgets to performance, implementing shared financial services, and developing clear and concise financial reports for taxpayers. Workshops on the last day focused on performance-based budgeting and developing performance and accountability reports. The goal of the conference was to help financial managers transform practices and better serve citizens in the new economic landscape.
The document discusses various aspects of public financial management including:
1) It outlines the key components of a public financial management system including resource generation, allocation, and expenditure management.
2) It describes the evolution of budgeting approaches from line-item budgets to performance and zero-based budgeting.
3) It discusses elements of modern budgeting reforms including medium-term budget frameworks, increased transparency, and a focus on results rather than just inputs.
Best Practices for Capital Improvement ProgramsJon Barsanti Jr
This document provides an overview and analysis of Capital Improvement Programs (CIPs) from various organizations. It examines aspects of CIPs that promote internal consistency, including consistent formatting over time, alignment with comprehensive plans, and clear presentation of impacts. CIPs strive for consistency in their content and structure from year to year. They also aim to be internally comprehensive by balancing routine and non-routine expenditures as well as short and long-term costs. Effective CIPs clearly disseminate impact information through tables, graphs and maps to relay data to readers.
This paper proposes a budget-centric and technology-focused framework to assess the government transparency and public financial maturity. Governments leverage technology to manage public finances and enable transparency. Most assessments of Public Financial Management (PFM) tend to be technology - neutral by providing little or no guidance about the use of Integrated Financial Management Information Systems (IFMIS), also known as Government Resource Planning (GRP). These assessments focus primarily on procedures and practices because no GRP can improve PFM quality when procedures or practices are ineffective.
The Business of IT - Financial Management LOB: Can It Deliver on OMB's Promise?Paul Wohlleben
The above article was published in the February 2006 edition of FEDTECH Magazine. It looks at the Bush administration's Financial Management Line of Business initiative, and provides thoughts on some of the critical challenges. The article is one in the series I write entitled "The Business of IT."
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Using Specific Intergovernmental Transfers to Buy Local Results
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is the lynchpin of any successful business plan and most agencies build out their budget year-after-year, but surprisingly, many do not. This issue of the MarshBerry Letter will examine the importance of incorporating an
annual budget into your business plan and the value of integrating a budget validation model.
This document discusses the importance of incorporating an annual budget into a business plan using a validated budget model. It notes that while most successful agencies update their business plan yearly, only 59% of average agencies do. The traditional approach of simply adding 10% to the previous year's revenue is inaccurate. Instead, a validated budget model requires collaboration between leaders to balance organic revenue growth expectations with past production results to set achievable goals. This allows accurately predicting revenue over two to three years by considering retention rates and historical new business performance by producer. The validated budget model helps understand capabilities and growth drivers while identifying changes to achieve sustainable growth.
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This document discusses improving performance measurement in business planning. It recommends using a logic model approach to identify relevant performance measures covering inputs, outputs, and outcomes. This helps structure how a program or policy is intended to achieve its goals. Quality performance measures should address the needs of citizens and stakeholders. Measures need to be selected that are appropriate for both management and accountability purposes. Ensuring measures capture intended outcomes, in addition to outputs, can help focus efforts on achieving desired results.
1) Developing performance measures for business plans requires understanding the key issues through a "logic model" approach. This identifies inputs, outputs, and outcomes in a results chain from short to long-term.
2) Quality assurance of measures is important. Measures should meet the needs of managers, staff, and citizens. They require balancing financial and non-financial metrics.
3) Measures serve both management and accountability, but some outcomes are beyond staff control and should not be used for accountability alone. Reporting website performance is also important.
This document discusses improving performance measurement in business planning. It recommends using a logic model approach to identify relevant performance measures covering inputs, outputs, and outcomes. This helps structure how a program or policy is intended to achieve its goals. Quality performance measures are important for business plans and accountability. Measures should address what citizens and customers want measured. Time lags and attribution challenges must also be considered when developing outcome-oriented measures.
The document discusses the Alliance for Community Innovation (AFCI), a public-private partnership consortium established to deliver community development projects through innovative collaboration. The AFCI strategy is based on aligning the needs of communities with project requirements to accelerate revitalization and economic development. Each P3 project is organized as a unique entity to address a specific objective, such as critical infrastructure or downtown redevelopment. Lessons learned emphasize the importance of community champions, appropriate public and private participation, and managing expectations for project goals and timelines.
The document discusses cost cutting strategies for an organization called Company X. It analyzes Company X's financial and performance information from 2014-2015 and identifies several areas for cost reductions. These include reevaluating the revenue model due to a 40% decrease in overall revenue, reducing discretionary expenditures that increased sharply without reason, optimizing resource use to better balance performance targets, and reviewing the organizational structure to streamline functions. Implementing initiatives in these areas can improve financial sustainability and minimize operational pressures without hurting core objectives.
This document discusses seven leadership practices for government agencies to improve effectiveness and efficiency during times of declining budgets. The practices are: 1) Know the agency's mission and capabilities; 2) Reassess stakeholders' needs; 3) Align the budget with the mission; 4) Make bold, high-impact decisions; 5) Spend money to save money through investments; 6) Make fact-based decisions using robust data and analytics; 7) Institutionalize efficiency processes. Applying these practices as part of an "Enterprise Effectiveness and Efficiency" framework can help balance effectiveness, efficiency, and change readiness during budget cuts.
Similar to Public Expenditure Management: Allocative efficiency, forward estimates, public programs and prioritization (20)
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Public Expenditure Management: Allocative efficiency, forward estimates, public programs and prioritization
1. COLLEGE OF LAW, GOVERNMENT AND INTERNATIONAL STUDIES
PUBLIC EXPENDITURE
MANAGEMENT
The process of :
Allocative Efficiency, Forward Estimate,
Public Programs and Prioritization
PREPARED FOR : PUBLIC FINANCIAL MANAGEMENT CLASS | Dr. SALIHU ABDULWAHEED ADELABU
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2. CONTENTS PEM
General Overview of Public
Expenditure Management
The process of allocative
efficiency
PEM : Forwards estimates
Public Programs
Managing prioritization
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3. GENERAL OVERVIEW
OF PUBLIC EXPENDITURE MANAGEMENT
Public expenditure management (PEM) is one
instrument of government policy.
Public expenditure management is a basic means of
government policy distributing utilizing sources
productively, effectively and sensitively
(Allen, Tommasi, 2001, p.19).
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4. Aggregate
Allocative of Fiscal
of Discipline
effective,
efficient
Technical
efficiency
THE OBJECTIVES OF
PUBLIC EXPENDITURE MANAGEMENT
Worldbank:1999
-
5. PUBLIC EXPENDITURE MANAGEMENT (PEM)
OBJECTIVES
Allen, Tommasi, 2001,
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6. 1 ALLOCATIVE
EFFICIENCY STRATEGY
DEFINITION
That is capacity to establish
priorities within the budget, to
distribute resources on the Unified Budget
basis of the government’s
priorities and the program is Consolidation
effectiveness.
Moreover, is to shift resources
Forward
from old priorities to new Estimates
ones, or from less to more Rolling plan budget
productive activities, in
correspondence with the
government’s objectives
Performances
(Allen & Tommasi : 2001)
Based Budgeting
Efficiency & effective
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7. Allocative Efficiency Problems of
Some Developing Countries
Practice Problems
Short-term Government budgets one year at a time, without considering
Budgeting medium-term implications, such as the recurring operating
costs of new projects.
Escapist Planning Planning is politically important but the government promises
in the plan what it cannot pay for in the budget.
Distorted Priorities Scarce resources are spent on showcase projects that
produce meager social return while the budget underspends
on human capital (health, education, etc.).
“Enclave” Efforts (often by international organizations) to protect certain
Budgeting priorities by establishing special funds, separate investment
budgets, social (or physical) investment programs, and
other devices that wall off the "enclaves" from the rest of the
budget.
Source: Allen shick : 1999: 39
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8. FORWARD
2 ESTIMATES
DEFINITION FUNCTION
Structured of budget Application of the forward
estimates in the medium-term
work during periods of
perspective to create certainty of
program expansion as funding for ministries / agencies.
well as during periods
of contraction, and it
The assurance gives
have to survived
opportunities in ministries /
against several agencies in planning expenditure
changes in government / spending in subsequent years in
leadership. accordance with the principles of
efficient allocative efficiency.
Indonesia the National Development Planning Agency
(Allen Schick:1998)
Cont: Public Programs
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9. 3 PUBLIC PROGRAMS
Public programs is implement policy.
“Programs are ongoing service or activities…programs authorized
by policies, are directed toward bring about collectively shared ends.
These ends, or goals, include the provision of social and other public
services and implementation of regulations designed to affect the
behavior of individuals, businesses, or organization.”
Source: Laura Irwin Langbein, Public Progrm Evaluation : A Statistical Guide , Second ,Edition,United States:Library Materials,
pg 4
Government final
consumption expenditure
In What Intended to create future
Programs benefits (investment)
government
expenditure Transfer payment
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10. Government final consumption expenditure
“Government final consumption consists of
expenditure, including imputed expenditure,
incurred by general government on both
individual consumption goods and services and
collective consumption services”
Source: Set: National Account of OECD Countries Volume II, 2010, OECD, pg 904
Water,
Food Clothing Electricity, Health Transpo Commu Education
Gas rtation nication
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11. Intended to create future benefits (investment)
“…Capital expenditure decisions, therefore,
involve a current outlay or a series of outlay
over a period of time in return for future
benefits.”
Source: Banerjee Bhabayosh, (2008)Fundamentals of Financial Management.. New Delhi: PHI
Learning Private Limited. Pg 256.
PERLIS
Airports, Machinery
Roads Transport
Building Railway, For
Equipment
Bridges Technology
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12. Transfer payment
Transfer payment
Example of
Transfer Payments. Payment Transfer payment
made by government to an
individual that are not in
exchange for good or services,
have important implications for
the alleviation of poverty and
distribution of income. Welfare
Payments can be either in
cash or in kind
Social security
There’s two type, Means-
tested transfer and social
insurance programs
Source: John B. Taylor, Akila Weerapana: 2007
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13. 4 PRIORITIZATION IN PEM
What is public expenditure Priorities
The government need to arrange the public
programs expenditure starting from high –
priority category until the low priority
category.
budget allocations would reflect the
government’s considered and reasonable
judgment on priorities
Sources : David Bevan 2007,Promoting and Protecting High-Priority Expenditures, pg2
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14. 2. Look at 3. Now give a
number to all 4. Now you
each programs starting have them
1. Look at programs from high –priority
our budget in priority
and assign category until the low
order
and make it a letter priority category
sure it is as based on the
complete situation in the
country
Sources : Lyman Rose 2012, 4 Step to prioritize expenditures, pg1
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15. LET’S WE DO ONE EXERCISE TO UNDERSTAND
PUBLIC EXPENDITURE PRIORITIES
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16. FURTHER READING
Allen, Richard and Daniel Tommasi (2001), Managing Public Expenditure A Reference Book for Transition
Countries, SIGMA, OECD
Banerjee Bhabayosh, (2008)Fundamentals of Financial Management.. New Delhi: PHI
Learning Private Limited.
David Bevan 2007,Promoting and Protecting High-Priority Expenditures,
Laura Irwin Langbein, Public Program Evaluation:A Statistical Guide , Second ,Edition,United States:Library
Materials,
Lyman Rose 2012, 4 Step to prioritize expenditures, Retrieved November 16, 2012, from
www.imf.org/external/pubs/ft/expend/guide3.htm
Minister of Finance Malaysia(2012),Retrieved November 16, 2012, from
www.treasury.gov.my/.../2012/.../FGDE20122013...
Set: National Account of OECD Countries Volume II, 2010, OECD,
Susan Grant Chris, Chris Vidler, , Andrew Ellams, Heinemann Economics A2 for Edexcel, Uk: Scotprint.
Schick, Allen (1999), A Contemporary Approach to Public Expenditure Management, World Bank
Institute, Governance, Regulation, and Finance Division, Second Printing, (April).
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Expenditure policy is trying to find an answer for the question "what" is to be done, Expenditure management tries to find an answer for the question "how" it is to be doneJadrankaDjurović-Todorović, Marina Djordjević: 2009
Public expenditure management approach has been taken into consideration not onlyby World Bank and IMF but also The Organization for Economic Co-operation and Development(OECD) and European Union has supported this approach
Fiscal discipline has a close relation with the control of budget magnitudes effectivelyand it assumes a binding role on both macro level and expenditure unit by means of expenditureceilings (Allen, Tommasi, 2001, p.19).The three basic objectives of PEM provide a frameworkto assess progress in improving performance of the budget system
Richard Allen and Daniel TommasiEfficiency in allocation is the skill of distributing sources in budget priorities
From the book of management and control of government expenditure, OECD-1987
Source: Laura Irwin Langbein, Public Progrm Evaluation : A Statistical Guide , Second ,Edition,UnitedStates:Library Materials, pg 4See also: Allen, Tommasi,2001, Allen, Richard and Daniel Tommasi (2001), Managing Public Expenditure A Reference Book for Transition Countries, SIGMA, OECD, pg19
Source: Set: National Account of OECD Countries Volume II, 2010, OECD, pg 904
“ Transfer payments refer to money transferred from one person or group to another which is not in return for any good or service”Government transfer or simply transfer is a redistribution of income in the market system.These payments are considered to be exhaustive because they do not directly absorb resources or create output.SOURCE: Susan Grant Chris, Chris Vidler, , Andrew Ellams, Heinemann Economics A2 for Edexcel, Uk: Scotprint.pg 207
See also: sources : Lyman Rose 2012, 4 Step to prioritize expenditures, Retrieved November 16, 2012, from www.imf.org/external/pubs/ft/expend/guide3.htm