This unit introduces key concepts of public fiscal systems and processes in the Philippines such as development planning, resource generation, budgeting, and accountability tracking. It also outlines the expectations of fiscal policy and discusses Plato's Allegory of the Cave, which illustrates the difference between those who believe knowledge comes from empirical evidence versus philosophical reasoning. The document then provides a brief history of fiscal policy under different Philippine administrations and assigns an activity assessing the state of public fiscal governance in the country.