Group 5

Summary of the Phil. Public Fiscal Administration

Slide 1

Presenting and Introduction of the Group members – in behalf of the Group 5 let me introduce to you
the members of the group

As your name is called Please stand up to be recognized, starting with your truly Iam Maria luisa Javier

Slide 2 Report outline our group will tackle the …….

Slide 3 these are the logos of the concern institutions of our group report

Slide 4 – We have divided our group report into five parts

Part 1 of the report which is the…………………… to be discuss by yours truly

Part 2 is the National Planning System wherein the concern govt. agency is the ……. Or NEDA for short to
be reported by Mr. Sarvida for the first half and followed by Ms. Ellora for the last part.

Slide 5

Part 3 is the National Financial System and the concern govt . agency is…. Or DOF for short the report
will cover the introduction, systems…… (Read in the slide) to be presented by MsJoeann Medina and Mr.
Rommel Romarate

Slide 6

Part 4 is the National Budgetary System and the proponent agency is the …. Or DBM it covers all the
fiscal program, ……. (read in the ppt) to be discuss and explain by Ms. Marilyn Abaigar for the first half
and the second half by Ms. Hiramis

Slide 7

And last but not the least is a example of Budget System , a comparison of public & ……….. private to be
discuss by Mr. Tizon.

there you have the topics to be discuss in our report. So to start with,

Slide 8

–Part 1 when you say non –profits organization are tax exempt or charitable, meaning they do not pay
income tax on the money that they receive for their organization. The money or income is used only for
their objectives.

To name a few of those top most non profit organizations and public service entities are

a. Philippine Red Cross is one of those ready to give a helping hand and immediate assistance
during disasters
b. Gawad Kalinga which is founded by a kind hearted and now given the name as phronetic
leadership no less than Antonio Meloto with a simple mission of Ending Poverty for 5 million
families by 2024
c. Ayala Foundation too

Second paragraph – the government should as it is well said that our financial should be wisefully,
lawfully, effectively and efficiently spent. Hindi dapat ilustay

It should not only funded but administered it efficiently

Slide 9
To easily understand the Philippine Public Fiscal Administration I made an illustration of it

Slide 10 read paragraph……. When you say social amelioration program it is something for the
betterment or benefited by the people. So the government is making or creating & craft taxes, because
under the Constitution the lgus have given the power to create revenue sources.

Slide 11 And what are the sources of Revenue of the Government?

A. Tax Returns - according to tax policy center.org 80 % of the revenue received by the
government comes from our individual income tax returns BIR Form 1701, those 9% from
businesses/trade who are earning compensation income. and the 11 % from other sources
which is collectively known as the non tax revenues.
B. Non-Tax Revenues – are those revenue receipts which are not generated by Taxing the Public or
simply the income earned by the government from sources other than taxes

Slides 12
DBM is the Executive Department of the Philippine Government to promote sound, efficient
and effective management utilization of government resources as instrument to achieve
national socio economic and political devt. Goals

Slide 13
Your report starts here…….
These four elements can be interpreted as comprising the internal environment of local fiscal
administration.

All definitions have common areas, all of them refer to revenue generation and revenue
allocation/utilization as part of the scope of local fiscal administration, which covers the rational for
allocation, utilization and control of resources through the concept of performance budgeting by the
LGU.

 Local Fiscal administration it involves revenue generations

 It also referred to as the formulations, implementation & evaluation of local fiscal policies by the
lgus

Intergovernmental relationships – means the fiscal relations the National government and its agencies

While LGU’s referred to in the literature as central-local fiscal relations.

Slide 14 Local Government units includes the provincial, city, municipalities & barangay, fund is
established under Local Government Code
each local government unit including barangay maintains a general fund which comprises monies and
resources of the LGU for payment of expenditures.

Slide 15
The fiscal relations between national government and the local may also referred to as central -local
fiscal relations
While the fiscal relAtions among lgus themselves which may be referred to as inter-local fiscal relations

Slide 16
Political subdivisions
The largest lgu under the existing jurisprudence is the province
at present, the Philippines has 81 provinces
as for the city – 145 cities

There are three classes of cities in the philippines

1. highly urbanized cities(HUC) – are local government units that have a minimum population of
200,000 as certified by the National Statistic Office and an annual income of 50 million

33 of these belongs to the highly urbanized cities – quezon city, pasig city and makati city are
those belong to highly urbanized city within metro manila
As for the city outside metro manila these are baguio city, cebu city and davao city
 2. Independent component cities (ICC)– cities outside of the provincial jurisdiction and some are
allowed to participate in the election of provincial officials
There are only 5 independent component cities these are ;
Dagupan City in Pangasinan,
NagaCity in Camarines Sur
Ormoc City in Leyte
Santiago City in Isabela
Cotobato City
3. Component cities(CC) – are those under a province’s jurisdiction or part of the province where
they are located, according to philatlas.com there are
107 component cities

and the smallest is the barangays -as of today we have a total of 42,029 barangays in the phils

Read

there are two types Funds the General Funds and the special funds Under the Special funds we have
SEF
Trust Funds

As for the RPT, local govt. imposes tax on every land, building, machinery and other real property
located in its territorial jurisdiction.

RPT may categorized into residential, agricultural commercial, industrial, mineral timberland or special

The Makati has a good way in imposing tax as in the case of MRT if you will recall way back in 2004 the
mrt station from Guadalupe station up to Ayala station was closed and seized by the City Government of
Makati for its failure to pay or none compliance of the MRT to pay the real property taxes for period of
2000- 2004 and it accumulated the amount of close to 1Billion pesos

Slide 17 Sources of revenue

Local Levies – P.D.231 or the Local Tax Code of the Philippines

Local Government Tax may include the following

a. Transfer tax – tax on transfer of ownership or through donation or sale

b. Professional Tax Receipt or PTR – is the proof that a licensed professional , a Doctor , Engineer
or a Dentist is practicing His profession for the specific year

The income generated from real property tax will g directly to the SEF

so if you look around the university of umak inside and out all that you see starting from widescreen tV
, computers, books ,bag & shoes everything came from the SEF

C. While Trust funds are those funds generated from both public and private sectors

Slides 18

Sources of Revenues

National taxes - refers to national internal revenue taxes which is imposed and collected by national
government through the BIR while

Local Taxes refer to those imposed and collected by the local government.

One good example of local taxes being collected by the lgus are miscellaneous taxes, corporate taxes
business taxes, rel property tax . feddlers tax, weights and measures

B. local Levies – transfer tax are tax on transfer of ownership or through donation, sale, barter
Even doctors, lawyers, dentists, engineers pay their PTR

Slide 19

These are the composition of the local government unit they shall guarantee and promote local
autonomy in short

The LGUs are given more powers, authority, responsibilities and resources especially the barangays – to
ensure their fullest development as self-reliant communities.

While The Mayors and Governors have the direct supervision over their respective treasurers

On the other hand,

Fiscal Officers they are to ensure that the monies are spent according to fiscal policy.

Slide 20

Every July 15 of every year is deadline the submission of report as well as the deadline for submission
for the Budget Proposals includes or in accordance with the

Policy program guidelines

Objectives

Functions and projects

Description of functions

Projects and activities

Costs

Expected results

Relation of work and financial proposal

In setting a local government budget it involves there key decision

1.Allocation – economic efficiency

Technically efficiency
Net social benefits/ costs

2.distribution,

3.stabilization/growth

After the the budget proposals have been estimates and the budgetary ceilings set by the Local Finance
Committee, the Local Chief Executive prepares the local govt, budget which is then submitted to the
Sanggunian not later than Oct.16 of the same year.

Note : The local chief executive may be heldcriminally and administratively liable in case of delay in the
submission

Slide 24

In the exercise of police power under this clause (read example) as in the case of rural bank of Makati vs
Municipality of Makati

Through an ordinance passed by the sanggunian

As determined by the dept of agruculture a lot can be reclassified or

A lot can be converted to a commercial high rise building that in return will gain profit or greater
economic value for the lgus

As for permanent closure – an ordinance must be approved by at least 2/3 of all members of the
sanggunian

May have the power to change or modified their corporate seals

To negotiate and secure financial grants or donations in support of the basic services or facilitie