Public Fiscal Administration National Development, Revenue and Expenditures
Topic Outline  The Philippine Tax System :Roles of Bureau of Internal Revenue and Bureau of Customs  Financing Phili...
What is Taxation? A system of raising money to finance government. All governments require payments of money—taxes—fro...
Characteristics of a Tax 1. It is an enforced contribution; 2. It is generally payable in money; 3. It is proportion...
PURPOSES and BASES of taxation • State or government’s purpose – needs finances for social goods and services • Resource...
Organizational Overview Financial Administrator ...
Department of FinanceBureaus Bureau of Internal Revenue (BIR) Bureau of Customs (BOC) Bureau of the Treasury (BTr...
Philippine Tax StructureCorporate Tax in Philippines a tax that must be paid by a corporation based on the amount...
Income Tax in Philippines a tax on a persons income, emoluments, profits arising fromproperty, practice of profes...
The Philippine Tax System :Roles of Bureau ofInternal Revenue and Bureau of Customs Bureau of Internal ...
The Philippine Tax System :Roles of Bureau ofInternal Revenue and Bureau of Customs Bureau of Customs (BOC)1. ...
Financing Philippine NationalGovernment, Local Government, PublicCorporations What is National Government? Und...
The Judicial branch (law-interpreting body) demonstrates its authorityto the Supreme Court of the Philippines as the highe...
A Bangko Sentral ng Pilipinas, is a banking institution granted theexclusive privilege to lend a government its currency. ...
Financing Philippine National Government,Local Government, Public Corporations What is Local Government? -A politica...
Organizational Overview of LGU Barangay Municipality City ...
Organizational Responsibilities of LGU to LocalFiscal Administration : 1. The giving of allotments and grants by the nat...
Local Governments’ Share of National Revenues Barangays Provinces 20% 23% M...
Financing Philippine NationalGovernment, Local Government, PublicCorporations What is Public Corporation? Thes...
List of government owned and controlled corporations(GOCC) in the Philippines based on records from theCommission on Audit...
Development Bank of the Philippines (DBP)DBP Data Center, Inc. (DCI)Duty Free PhilippinesEmployees Compensation Commission...
Local Water Utilities Administration (LWUA)Lung Center of the Philippines (LCP)Mactan-Cebu International Airport Authority...
National Kidney and Transplant Institute (NKTI)National Power Corporation (NAPOCOR)National Tobacco Administration (NTA)Na...
Philippine Convention and Visitors Corporation (PCVC)Philippine Crop Insurance Corporation (PCIC)Philippine Deposit Insura...
Philippine National Railways (PNR)Philippine Ports Authority (PPA)Philippine Postal Corporation (PHILPOST)Philippine Posta...
Reason of Creation of Public Corporations Established not for the purpose of competing with private enterprises but ...
Public Expenditures : Process , Methods and PatternsWhat is National Budget? The national budget is a f...
The Philippine Budget Process
Budget Preparation Budget preparation phase involves activities linked to the formulation and consolidation of the nat...
Budget Legislation Budget legislation starts once the President transmits the proposed budget to Congress. Congress ...
Budget Execution The GAA serves as the legal basis which allows for the use of funds from the national treasury f...
Budget AccountabilitySince government officials act as stewards of public resources, it isessential that mechanisms be put...
Thank you..
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National Development and Revenue Expenditure

Published on: Mar 3, 2016
Published in: Economy & Finance      Technology      Business      
Source: www.slideshare.net


Transcripts - National Development and Revenue Expenditure

  • 1. Public Fiscal Administration National Development, Revenue and Expenditures
  • 2. Topic Outline  The Philippine Tax System :Roles of Bureau of Internal Revenue and Bureau of Customs  Financing Philippine National Government, Local Government, Public Corporations  Processes, Methods and Patterns of Public Expenditures
  • 3. What is Taxation? A system of raising money to finance government. All governments require payments of money—taxes—from people. What is Revenue? It is a government income. the income of a government from all sources, used to pay for a nations expenses.Major Source of Revenue : Tax of Transfer of Real Property Ownership Tax on Business of Printing & Publication Franchise Tax Tax on Sand, Gravel and other Quarry Resources Professional Tax Amusement Tax Annual Fixed Tax
  • 4. Characteristics of a Tax 1. It is an enforced contribution; 2. It is generally payable in money; 3. It is proportionate in character; 4. It is levied on persons, property, or the exercise of a right or privilege; 5. It is levied by the State, which has jurisdiction over the subject or object of taxation; 6. It is levied by the lawmaking body of the State; and 7. It is commonly required to be paid at regular periods or intervals.
  • 5. PURPOSES and BASES of taxation • State or government’s purpose – needs finances for social goods and services • Resources – needed to support the operations of the government • Development – as an instrument for directing the economy towards prosperity – capital formation – allocation of resources – redistribution of income and wealth • economic stability
  • 6. Organizational Overview Financial Administrator Department of Finance (DOF) Bureau of Bureau of Local Bureau of Bureau of the Internal Government Customs (BOC) Treasury (BTr)Revenue (BIR) Finance (BLGF) Major Tax Collecting Agencies
  • 7. Department of FinanceBureaus 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)
  • 8. Philippine Tax StructureCorporate Tax in Philippines a tax that must be paid by a corporation based on the amount ofprofit generated.Capital Gains Tax in Philippines a tax imposed on the gains presumed to have been realized by theseller from the sale, exchange, or other disposition of capital assets locatedin the Philippines, including pacto de retro sales and other forms ofconditional sale.Customs Duty in Philippines a tax levied on imports (and sometimes on exports) by the customsauthorities of a country to raise state revenue, and/or to protect domesticindustries from more efficient or predatory competitors from abroad.
  • 9. Income Tax in Philippines a tax on a persons income, emoluments, profits arising fromproperty, practice of profession, conduct of trade or business or on thepertinent items of gross income specified in the Tax Code of 1997 lessthe deductions and/or personal and additional exemptions, if any,authorized for such types of income, by the Tax Code or other speciallaws.Percentage Tax in Philippines is a business tax imposed on persons or entities who sell orlease goods, properties or services in the course of trade or businesswhose gross annual sales and/or receipts do not exceed Peso 750,000and who are not Value Added Tax (VAT)-registered.Value-Added Tax in Philippines is a form of sales tax. It is a tax on consumption levied on thesale of goods and services and on the imports of goods into thePhilippines. It is an indirect tax, which can be passed on to the buyer.
  • 10. The Philippine Tax System :Roles of Bureau ofInternal Revenue and Bureau of Customs Bureau of Internal Revenue (BIR) The powers and duties of the BIR shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. Of the two functions of the BIR, assessment and collection, the effectiveness of the collection depends on the quality of the assessment done by the enforcement officers/officials assigned for such duties. Assessment functions can further be subdivided into two major activities. 1. Voluntary or Self-Assessment 2. Enforced Assessment
  • 11. The Philippine Tax System :Roles of Bureau ofInternal Revenue and Bureau of Customs Bureau of Customs (BOC)1. Responsible for assessment and collection of the lawful revenue from imported articles and all other duties, fees, charges, fines and penalties accruing under the tariff and customs law2. Prevention and suspension of smuggling and other frauds upon customs
  • 12. Financing Philippine NationalGovernment, Local Government, PublicCorporations What is National Government? Under the Constitution, the government is divided into executive, legislative, and judicial departments. The separation of powers is based on the theory of checks and balances. The Executive branch (law-enforcing body) is under the headship of the president. The president obtains the position through national voting system; the tenure is a six-year period. Legislative branch (law-making body) is characterized by a bicameral Congress comprising the Senate and the House of Representatives. Occupying the upper house is the Senate whose 24 members are voted for in a national election with a 6-year term.
  • 13. The Judicial branch (law-interpreting body) demonstrates its authorityto the Supreme Court of the Philippines as the highest judicial bodyand presided by a Chief Justice with 14 Associate Justices; all areappointed by the president under the advice of the Judicial and BarCouncil. What are the major sources of funds to finance the national government? 1) revenues from both tax and non-tax sources; 2) borrowings from both domestic and foreign sources; and, 3) withdrawals from available cash balances
  • 14. A Bangko Sentral ng Pilipinas, is a banking institution granted theexclusive privilege to lend a government its currency. Like a normalcommercial bank, the bank charges interest on the loans made toborrowers, primarily the government, typically as a lender of last resort.
  • 15. Financing Philippine National Government,Local Government, Public Corporations What is Local Government? -A political subdivision of a nation or state consituted by Law which has substantial control over local affairs including the power to impose taxes, governing body of which is elected or appointed. -A political subdivision of the National Government excluding the field offices of line agencies geographically located within the jurisdiction of LGU’s.
  • 16. Organizational Overview of LGU Barangay Municipality City Province Region
  • 17. Organizational Responsibilities of LGU to LocalFiscal Administration : 1. The giving of allotments and grants by the national government (NG) to local government units (LGUs); 2. Sharing of taxing powers between the NG and the LGUs, and among LGUs units; 3. Solicit on tax rates and structure; 4. Revenue and expenditure planning; 5. Revenue utilization and expenditure allocation; 6. Monitoring and approval of budgets, tax ordinances and other fiscal measures; 7. Policy on borrowing and borrowing instruments; and 8. Appointment and supervision of local fiscal officers. . Organizational Responsibilities of LGU to Local Fiscal Administration
  • 18. Local Governments’ Share of National Revenues Barangays Provinces 20% 23% Municipalities Cities 34% 23%
  • 19. Financing Philippine NationalGovernment, Local Government, PublicCorporations What is Public Corporation? These are corporations created or established by a special charter or law in the interest of the common good and subject to the test of Economic viability. They are directly under the Government Corporate Monitoring and Coordinating Committee, which has the primary responsibility to monitor, coordinate, and conduct performance evaluation of all Government-owned and Controlled Corporations (GOCCs). How is the Public Sector funded? Mostly, but not exclusively from taxation. Taxation itself can come in many forms. Direct taxation is taxation applied against declared income.
  • 20. List of government owned and controlled corporations(GOCC) in the Philippines based on records from theCommission on Audit (COA). 08/10/2010Al-Amanah Islamic Investment Bank of the Philippines (ISLAMIC BANK)Bangko Sentral ng Pilipinas (BSP)Bases Conversion Development Authority (BCDA)Cebu Ports Authority (CPA)Clark Development Corporation (CDC)Cottage Industry Technology Center (CITC)Center for International Trade Expositions and Missions (CITEM)Cultural Center of the Philippines (CCP)Development Academy of the Philippines (DAP)
  • 21. Development Bank of the Philippines (DBP)DBP Data Center, Inc. (DCI)Duty Free PhilippinesEmployees Compensation Commission (ECC)Food Terminal Incorporated (FTI)Government Service Insurance System (GSIS)Home Development Mutual Fund (Pag-IBIG)Home Guaranty Corporation (HGC)Laguna Lake Development Authority (LLDA)Land Bank of the Philippines (LBP)Light Rail Transit Authority (LTRA)Livelihood Corporation (LIVECOR)
  • 22. Local Water Utilities Administration (LWUA)Lung Center of the Philippines (LCP)Mactan-Cebu International Airport Authority (MCIAA)Manila International Airport Authority (MIAA)Masaganang Sakahan, Inc.Metropolitan Waterworks and Sewerage System (MWSS)National Agribusiness Corporation (NABC)National Dairy Authority (NDA)National Development Company (NDC)NDC Maritime Leasing Corporation (NLMC)National Electrification Administration (NEA)National Food Authority (NFA)National Home Mortgage Finance Corporation (NHMFC)National Housing Authority (NHA)National Irrigation Administration (NIA)National Livelihood Support Fund (NLSF)
  • 23. National Kidney and Transplant Institute (NKTI)National Power Corporation (NAPOCOR)National Tobacco Administration (NTA)National Transmission Corporation (TRANSCO)North Luzon Railways Corporation (NorthRail)Northern Foods Corporation (NFC)Natural Resources Development Corporation (NRDC)Occupational Safety and Health Center (OSHC)Overseas Workers Welfare Administration (OWWA)Peoples Credit and Finance Corporation (PCFC)PEA Tollway Corporation (PEATC)Philippine Aerospace Development Corporation (PADC)Philippine Amusement and Gaming Corporation (PAGCOR)Philippine Center for Economic Development (PCED)Philippine Charity Sweepstakes Office (PCSO)Philippine Coconut Authority (PCA)
  • 24. Philippine Convention and Visitors Corporation (PCVC)Philippine Crop Insurance Corporation (PCIC)Philippine Deposit Insurance Corporation (PDIC)Philippine Economic Zone Authority (PEZA)Philippine Export-Import Credit Agency (PHILEXIM)Philippine Health Insurance Corporation (PHILHEALTH)Philippine Heart Center (PHC)Philippine International Convention Center (PICC)Philippine International Trading Corporation (PITC)Philippine Institute for Development Studies (PIDS)Philippine Institute of Traditional and Alternative Health Care (PITAHC)Philippine National Oil Company (PNOC)PNOC Alternative Fuels Corporation (PNOC AFC)PNOC Exploration Corporation (PNOC EC)PNOC Development and Management Corporation (PDMC)PNOC PNOC Shipping and Transport Corporation (PNOC ST
  • 25. Philippine National Railways (PNR)Philippine Ports Authority (PPA)Philippine Postal Corporation (PHILPOST)Philippine Postal Savings Bank, Inc. (PPSB)Philippine Retirement Authority (***)Philippine Reclamation Authority (formerly Philippine Estates Authority)Philippine Rice Research Institute (PRRI)Poro Point Management Corporation (PPMC)Power Sector Assets and Liabilities Management Corporation (PSALM)Philippine Tourism Authority (PTrA)Quedan Rural Credit and Guarantee Corporation (QUEDANCOR)Radio Philippine Network, Inc. (RPN)Small Business Guarantee & Finance Corporation (SBGFC)Social Housing Finance Corporation (SHFC)Social Security System (SSS)Subic Bay Metropolitan Authority (SBMA)Sugar Regulatory Administration (SRA)Technology & Livelihood Resource Center (TLRC)Trade and Investment Development Corporation of the Philippines(TIDCORP)Zamboanga City Special Economic Zone Authority (Zamboanga FreeportAuthority)
  • 26. Reason of Creation of Public Corporations Established not for the purpose of competing with private enterprises but to provide essential public services, to promote the economic development of the country.
  • 27. Public Expenditures : Process , Methods and PatternsWhat is National Budget? The national budget is a financial plan of government or the translation of government’s programs in monetary terms. Public expenditures are prepared and implemented with due consideration to the financial resources available to government to fund its expenditures. Thus, revenue and financing (borrowing) programs are drawn-up, along with the expenditure program, and form part of the budget.
  • 28. The Philippine Budget Process
  • 29. Budget Preparation Budget preparation phase involves activities linked to the formulation and consolidation of the national budget which will eventually be proposed by the President for approval by Congress. Preparation of the annual budget for a particular year is done in the preceding year.Major activities in this phase are: Setting of overall budget policy Agency-level budget formulation Executive review, deliberation and approval Preparation of budget documents and submission to Congress
  • 30. Budget Legislation Budget legislation starts once the President transmits the proposed budget to Congress. Congress plays a central role in this phase. Article VI, Sec. 29 of the Constitution provides that “No money shall be paid out of the Treasury except in pursuance of an appropriation made by law.” An appropriation is essentially an authorization made by law or other legislative enactment, directing payment out of government funds under specified conditions for specified purposes. The budget legislation is thus the process of securing an appropriation for the budget to be implemented.Bicameral Conference Committee. The general appropriations billsapproved by the two chambers of Congress are not usuallyidentical.
  • 31. Budget Execution The GAA serves as the legal basis which allows for the use of funds from the national treasury for specified expenditure items provided therein. However, the existence of a GAA alone does not imply that agencies can start utilizing and drawing funds to finance their programs and activities
  • 32. Budget AccountabilitySince government officials act as stewards of public resources, it isessential that mechanisms be put in place to promote accountability on howthey use public resources entrusted to them and how they have exercisedthe fiscal powers which were granted to them by the Constitution andexisting laws, rules and guidelines.
  • 33. Thank you..

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