Fiscal administration involves the management of financial resources including revenue generation, fund availability, and ensuring funds are spent wisely, lawfully, and efficiently. It is an important administrative responsibility. The key Philippine government agencies involved in fiscal functions are Congress, the Department of Finance, Department of Budget and Management, and Commission on Audit. The budget process involves preparation, authorization, implementation, and accountability stages at both the national and local levels.

4. To implement social amelioration program creates a charge on revenue earned while at the same time distributes and disperses social benefits.

7. PHILIPPINE PUBLIC FISCAL ADMINISTRATION ORGANIZING FOR FISCAL ADMINISTRATION: Functions of the Finance Department: Revenue generation and collection, Fund custody Disbursements Keeping of accounts

12. unit head defends the budget, explains its contribution to the realization of agency goals, develops a cost projection for each program

14. The agency is obligated to defend all programs every year and rank these in terms of priority using the ratio between cost and benefit criterion

17. consists of a detailed listing of every position to be filled

18. gives the legislative body tremendous discretion to strike out or to approve individual items

19. funds appropriated may not be transferred from one category of expense to another.

22. is program budgeting which spells out functions, activities and projects

23. allow transfer of funds from one organizational unit to another, between work activities and objects to be spent for.

26. PHILIPPINE PUBLIC FISCAL ADMINISTRATION NEW POLICY GUIDELINES FOR BUDGETING Agency programs will be supportive of the identified priority areas which include the following: enhancement of global competitiveness through liberalization, deregulation, and privatization provision for macroeconomic stability by instilling fiscal discipline, prudent government spending and efficient revenue generation reform in governance to make it responsive to the current domestic and global environment

28. scaling down or phasing out devolved or non-essential activities

29. doing away with duplicating functions; moratorium on increasing personnel and setting up new units

31. improving front-line public services

34. property tax

35. domestic goods and services tax

36. international trade and transactions tax , sales

41. PHILIPPINE PUBLIC FISCAL ADMINISTRATION APPROPRIATIONS AND OBLIGATIONS Automatic Appropriations –expenditures authorized by specific laws like Commonwealth Act 186 and Republic Act 660 for retirement and insurance premiums of government employees; Presidential Decree 1234 and other laws for special accounts and funds; grant proceeds; custom duties and taxes; proceeds from the sale of non-serviceable, obsolete and unnecessary equipment ; net lending; interest payment for national debt; amortization for domestic and foreign debts as per Presidential Decree 1967 and Republic Acts 4860 and 245.

42. PHILIPPINE PUBLIC FISCAL ADMINISTRATION APPROPRIATIONS AND OBLIGATIONS Continuing Appropriations – obligations provided under Executive Order No. 182 known as Public Works Act for Multiyear infrastructure Projects; agrarian reform; unobligated allotments for maintenance and other operating expenses and unreleased appropriations for maintenance and other operating expenses and capital outlays as provided by RA 8250 and RA 8522.

43. PHILIPPINE PUBLIC FISCAL ADMINISTRATION APPROPRIATIONS AND OBLIGATIONS Budgetary Adjustments –transfers to the reserve fund; transfer from the agrarian reform fund; organizational adjustment fund; general fund adjustment; miscellaneous personnel benefits; contingency fund; sale of military camps; countrywide development; Pinatubo assistance resettlement and development and unprogrammed projects.

45. how this will be spent at a given period of time. How a government forecasts and allocates its income and expenditures is illustrated in the budget document.

46. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE 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. It is what government plans: (1) to spend for its programs and projects (2) where the money will come from

47. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE PHILIPPINE BUDGETARY PROCESS 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.

48. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE PHILIPPINE BUDGETARY PROCESS The Philippine Budget undergoes four stages: (1) Budget Preparation - the determination of budgetary priorities and activities guided by the overall national development plan with the ceilings and constraints imposed by available revenues and borrowing limits.

49. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE PHILIPPINE BUDGETARY PROCESS The Philippine Budget undergoes four stages: (2) Budget Authorization – the President submits the overall budget to Congress in the form of detailed Expenditure Program accompanied by the Budget of Expenditures and Sources of Financing; the Budget Message of the President, and the Regional Allocation of the Expenditure Program.

50. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE PHILIPPINE BUDGETARY PROCESS The Philippine Budget undergoes four stages: (3) Budget Implementation – after the President signs the General Appropriations Act into law, the Department of Budget and Management requires the different agencies of government to submit their respective work and financial work plans.

51. PHILIPPINE PUBLIC FISCAL ADMINISTRATION THE PHILIPPINE BUDGETARY PROCESS The Philippine Budget undergoes four stages: (4) Budget Accountability – evaluation of actual performance and initially-approved work targets, obligations incurred,

53. Performance and cost effectiveness of agencies are evaluated since no results can be obtained if agency efficiency is slow and funds are wastefully spent

57. PHILIPPINE PUBLIC FISCAL ADMINISTRATION BUDGETARY REQUIREMENTS The budget of local government units for any fiscal year shall comply with the following: (a) the aggregate amount appropriated shall not exceed the estimates of income (b) full provisions shall be made for all statutory and contractual obligations of the local government unit concerned, provided the amount of appropriations for debt servicing shall not exceed twenty percent (20%) of the regular income of the local government unit concerned.

58. PHILIPPINE PUBLIC FISCAL ADMINISTRATION BUDGETARY REQUIREMENTS The budget of local government units for any fiscal year shall comply with the following: (c) aid to component barangays shall be provided in amounts of not less than one thousand pesos (P1,000.00) per barangay. (d) five percent (5%) of the estimated revenue from regular resources shall be set aside as an annual lump-sum appropriation for unforeseen expenditures arising form the occurrence of calamities

59. PHILIPPINE PUBLIC FISCAL ADMINISTRATION BUDGETARY PROCESS AT THE LOCAL GOV’T LEVEL The stages of are analogous to that of the national level of government. Four basic steps are also observed. (1) Budget Preparation (2) Budget Authorization (3) Budget Implementation (4) Budget Review

61. It is a component of the budgetary process since it is a mechanism for determining whether the expenditures are legal and desirable. TWO TYPES OF AUDIT: Pre-Audit Post-Audit

62. PHILIPPINE PUBLIC FISCAL ADMINISTRATION TWO TYPES OF AUDIT Pre-Audit – This is audit performed before money is actually spent and takes place before payment of an obligation or before the expense is incurred. Post-Audit – This is audit after money has been spent in order to find out whether funds are spent in accordance with the approved appropriation.

63. PHILIPPINE PUBLIC FISCAL ADMINISTRATION End of Presentation

64. PHILIPPINE PUBLIC FISCAL ADMINISTRATION Reference: AvelinoP. Tendero