A.

PHILIPPINE EDUCATIONAL SYSTEM

primary education
Paaralang Elementarya or elementary education is the first part of the educational
system, and it includes the first six years of compulsory education from grade 1 to 6,
with an optional 7th grade offered by some schools. Major subjects include maths,
science, English, Filipino and social sciences. Optional subjects include music, arts,
physical education, and health. Private school students may select subjects from a
wider curriculum including religious instruction in the dogma of their choice. 
Until 2004, primary students traditionally sat for the National Elementary Achievement
Test (NEAT) administered by the Department of Education, Culture and Sports (DECS).
However, the scores obtained by students in the NEAT were not used as a basis for
their admission into Secondary school. 
During 2004, when DECS was officially converted into the Department of Education
(DepEd), and as a result of reorganization, the NEAT was changed to National
Achievement Test (NAT) by the Department of Education (DepEd). Students from both
public and private elementary schools take this exam to measure a school's
competency. As of 2006, only private schools have entrance examinations for
Secondary school.

Middle Education
Middle school education is a part of Primary (or Elementary) Education
Secondary Education
Secondary education known as Paaralang Sekundarya comprises 4 grades that have
changed little since the second world war. The curriculum is prescribed for both private
and state schools. Core subjects are as follows:

 Year 1 - Filipino 1, Algebra 1, Integrated Science, English 1, Phillipine History

 Year 2 - Filipino 2, Algebra 2, Biology, English 2, Asian History
 Year 3 - Filipino 3, Geometry, Chemistry, World History, Geography
 Year 4 - Filipino 4, Calculus, Trigonometry, Physics, Literature, Economics

Minor optional subjects include Health, Music, Arts, Physical Education, Home
Economics and Technology. Selected schools present additional subjects. Total
secondary school numbers exceed 5.5 million.
Vocational Education
Accredited mainly private institutions known as colleges offer technical and vocational
education. Programs offered vary in duration from a few weeks to two-year diplomas.
On completion students may take centrally-administered examinations to obtain their
diploma or certificate.
Vocational colleges don’t usually require an entrance examination, only a record of high
school education and an enrollment fee.
Tertiary Education
Most institutions of higher learning are regulated by the commission for higher
education. 

Colleges typically offer 1 or more specialized programs while universities must offer at
least 8 different undergraduate degree programs in a wide array of subjects and at least
2 graduate programs. 

Public universities are all non-sectarian and offer a wide-range of programs, with
English as a medium of instruction. Public universities are government funded, with the
largest, the University of the Philippines, receiving the substantial portion of the annual
budget.

There are also a number of private tertiary institutions, sectarian or non-sectarian as

well as for-profit or not-for-profit. Most private institutions are Catholic non-profit
organizations.

Most universities offer 4 year degree programs with 2 semesters per year. 

B. The 'financial system' is a term used in finance to describe the system that allows
money to go between savers and borrowers.
Nature and Importance of Financial Systems
Financial institutions

 These are organizations that offer financial services.

Financial Market

 The system that allows people to buy and sell goods and services to each other.
Financial Instruments

 These are assets belonging to a person or company. This can include cash,
bonds, or other assets; such as property or items of value.
Financial services

 These are offered by financial institutions. These include such things as banking,
insurance policies, loans and mortgages, as well as pensions.
Financial Practice
  A sort of guideline around how the financial institutions should operate their
services.
Financial transactions

 These are the actual exchange of assets for goods or services - paying for a new
car, or a loan, for instance.
 These six elements work together to create a healthy financial system, which in
turn builds a strong economy. No one element is more important than the others
- they simply represent different mechanisms within the system that allow it to
function.
Components of Philippine Financial System
1. Term transformation
2. Economies of scale and diversification
in the use of funds
3. Technical Expertise
The major types of financial institutions in the Philippines are the commercial banks,
rural banks, thrift banks, specialized government financial institutions, offshore banks,
insurance companies and non-bank financial institutions.
The first four types of financial institutions take deposits from public. Because of this,
the Bangko Sentral ng Pilipinas supervises them. The last three types are
intermediaries with non-deposit sources of funds.
Key services provided by Financial System
Barriers to matching
Savers and Borrowers
How to reduce adverse selection?
1. Screening
2. Monitoring
What are Financial Markets?
How does the economy benefit from financial markets?
Philippine Financial Market
Money Market
Money market instruments:
1. Negotiable Certificates of Deposit.
2. Short-Term and Long-Term Commercial Papers.
3. Banker's Acceptances.
4. Treasury Bills, Notes and Bonds.
5. Repos and Reverse Repo
Participants in the
Philippine Money Market
Capital Market
Primary Market
Secondary Market
Bonds Market
Types of Instruments:
Government Bonds and
Corporate Bonds
Issuers and Investor in the
Local Bond Market
Issuers:
BSP
National Government
Commercial Banks
Main Investors:
Banks
Insurance companies
Corporation and Institutional
Investors
Money vs Capital Markets
Primary vs Secondary Markets
Thank you very much for listening, that concludes
our report about the Philippine Financial System.
Foreign Investors
What are Financial Systems?
The Philippine Financial System
The Philippine financial system consists of:
1. Banks and,
2. Non-bank financial Intermediaries.
Moral Hazard
Asymmetric information
and information cost
Corporates and
Institutional Investors
to the users of those savings in a safe and efficient manner
Increased walfare
Information
spend less than they earn
Increased production
Commercial Banks
Risk Sharing
Brokers
What are the roles financial institutions?
BSP
Adverse Selection
Liquidity
Elements of a
Financial System
spend more than they earn
Allocate or match the supply of savings in the economy

C. FISCAL ADMINISTRATION

1. Planning-Programming Budget System (PPBS) type

The Commission on Audit conducts fund and performance audit to see to it that expenditures
are in accordance with the Appropriation Law approved.

Top management is most interested in it; middle management is deeply involved in it; the rank
and file is affected by whatever results from it.

systems;

Organizing for Fiscal Administration

Congress is responsible for revenue and expenditure policies.

Fiscal administration zeros in on the management of financial resources and those activities and
operations to generate revenue, make those available, and see to it that funds are wisefully,
lawfully, effectively, and efficiently spent;

structures;

Budgeting Concepts

NEW POLICY GUIDELINES FOR BUDGETING

INCOME SOURCES

income from public enterprises and investments

Overview

b. estimated amounts to be spent for the same objects for the current fiscal year

PERFORMANCE BUDGETING

borrowings

a. actual expenditure for each object during the previous fiscal year

Organizing for Fiscal Administration

APPROPRIATIONS AND OBLIGATIONS

capital revenue

Continuing Appropriations

- It is the act of managing incoming and outgoing monetary transactions and budgets for
governments, educational institutions, nonprofit organizations, and other public service entities.

The administration of finances is an intrinsic component of management responsibility. There is

an intimate linkage between administering and funding. An administrative act has financial
implications;

Wholistic Budgeting

APPROPRIATIONS AND OBLIGATIONS

expenditures must achieve program targets and support development strategy

Control to Implement Prospective Policy

INCOME SOURCES

. Budgetary Adjustments

Four Justifications for Expenditure Control through the Budget:

It includes:

is lump-sum budgeting

Entrepreneurial Budgeting

PRINCIPLES FOR AGENCY GUIDANCE

miscellaneous income

Supplemental Appropriations

the formulation of the national budget must be in the context of a three-year planning framework

Based on this agenda:

Organizing for Fiscal Administration

 Prevent Deficits

officials and personnel; and,

 acceleration of countryside infrastructure development

Fiscal activity is present in all levels of the organization, whether line or staff; top management;
the rank and file.

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

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

These include:

processes;

 Revenue generation and collection;

 Performance-Based Budgeting
 Ensure the Wisdom and Propriety of Expenditure.

Organizing for Fiscal Administration

Budgeting may be of the:

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

PRINCIPLES FOR AGENCY GUIDANCE

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

operating and service income

is program budgeting which spells out functions, activities, projects

object of the expenditure type

consists of a detailed listing of every position to be filled

Three columns of figures appear in each budget sheet:

 . Commission on Audit

A decision to increase taxes increases revenue of government;

Review of estimates and fiscal policy studies are done by the Department of Budget and
Management in close consultation with the National Economic Development Authority.

 Department of Budget and Management

4. Keeping of accounts.

1. Tax Revenue

What is Fiscal Administration?

2. Fund custody;

1. Prudent Spending

Functions of the Finance Department:

There is a difficulty in identifying what work units perform or not perform, since its most
important concern is the overall performance of the agency

income tax, property tax, domestic goods and services tax, value added tax (VAT), etc.

1. modernization of the agricultural sector to augment farmer income, bolster production and
attain food security

4. enhancement of global competitiveness through liberalization, deregulation, and privatization

2. Zero-Base Budgeting (ZBB) type

c. amount desired for the same objects for the incoming or future fiscal year

3. Automatic Appropriations

grants

2. improvement of the quality of basic social services like health and sanitation, nutrition,
education, social welfare, and housing

1. Congress, especially the Lower House;

NEW POLICY GUIDELINES FOR BUDGETING

INCOME SOURCES

Because administrative activity is principally dependent upon availability of allocable financial

resources, the management of finances becomes a very important administrative responsibility.

Agency programs will be supportive of the identified priority areas which include the following:

1. Prevent Misappropriation of Funds

The principal agencies tasked with fiscal functions:

LINE ITEM

vs.

PERFORMANCE BUDGETING

3. Disbursements; and,

2. Department of Finance
LINE ITEM

the policy environment governing intergovernmental and local- fiscal relations.

1. New General Appropriations

Fiscal Control Mechanisms

2. Non-Tax Revenue

5. Consistency with Sub-Sectoral Development Objectives

D. PUBLIC ENTERPRISE MANAGEMENT

The public enterprises came into existence as a result of the expanding scope of public administration. The
advent of the concept of welfare state after the Second World War and the increasing developmental initiative
undertaken by Government across the world, the system of public enterprises was developed. The government sells
goods and services to the common people through the means of a state owned enterprise system which incorporates
the characteristics of both public and private enterprises. For e.g. the metro train facility for commuting in big cities,
developed, managed and run by the government.

The government operates in the areas which are of basic or strategic importance and also the areas that require
huge investments beyond the scope of private enterprises. The public enterprises in India have been on a steady rise
since their big show in the Third Five Year Plan and have engaged themselves in a number of economic activities like
advancing loans, regulating trade and commerce, heavy machine manufacturing, chemical drugs and fertilizers, oil
drilling etc. The government of India boasts of five Maharatnas and nine Navratnas (ratna meaning gems) public
enterprises which are engaged in myriad of economic and developmental activities in the country, e.g. The Steel
Authority of India, Hindustan Aeronautics Limited, National Thermal Power Corporation etc.

The state owned enterprises play an important political, economic and developmental role in their respective
countries. The public enterprises of the erstwhile Soviet Union comprised of 85% of the workforce of the country.

The growth of public enterprises also has its roots in the colonial pasts of the countries of Asia and Africa. The
Government sector, the public administration and ultimately the public enterprises in these countries have been
greatly influenced by the colonial powers that ruled them. India is a good example of this trend where even today the
Railways are the biggest example of a successful public enterprise. Even the countries with no colonial history like
Iran and Turkey, the public enterprise was used a tool to bring about economic, political and social changes,
particularly in Turkey after the demise of the Ottoman Empire and formation of the modern Turkey.

The history of public enterprises in the USA dates back in the nineteenth century and was characterized by the state
chartered banks in which the Federal Government has significant portion of the stocks. The formation of the Panama
Rail Road Company in 1904 was another victory of the public enterprise system. The growth of public administration
and enterprises reached its peak under Franklin D Roosevelt and the Tennessee Valley Authority became the most
emulated model of public corporation.

There are several factors that have contributed the growth of public enterprises in the recent times. The governments
have used it to guide and command the economy; they own the strategic industries, functions and agriculture and
also try to fill the inadequacies of the private sector. Public enterprises are also essential in bringing about national
development. They are also used as political instrument to maintain political stability, prevent unrest and provide
employment. Public enterprises have also helped the earlier colonized and now developing economies of the world to
decrease their dependency on other nations and become self sufficient. Monopoly, freedom to chose profitable
projects; no taxes etc are other factors that have led to their growth.
E. PUBLIC - PRIVATE PARTNERSHIP (PPP)

Public-Private Partnership (PPP) can be broadly defined as a contractual agreement between the Government and a
private firm targeted towards financing, designing, implementing and operating infrastructure facilities and services
that were traditionally provided by the public sector. It embodies optimal risk allocation between the parties –
minimizing cost while realizing project developmental objectives. Thus, the project is to be structured in such a way
that the private sector gets a reasonable rate of return on its investment.

PPP offers monetary and non-monetary advantages for the public sector. It addresses the limited funding resources
for local infrastructure or development projects of the public sector thereby allowing the allocation of public funds for
other local priorities. It is a mechanism to distribute project risks to both public and private sector. PPP is geared for
both sectors to gain improved efficiency and project implementation processes in delivering services to the public.
Most importantly, PPP emphasizes Value for Money – focusing on reduced costs, better risk allocation, faster
implementation, improved services and possible generation of additional revenue.

Elements of Public-Private Partnership

 Strategic mode of procurement

 A contractual agreement between the public sector and the private sector
 Shared risks and resources
 Value for Money
 Outcome orientation
 Acceleration of infrastructure provision and faster implementation
What are PPPs?

Public-Private Partnerships (PPPs) are contractual arrangements entered into by the

government with the private sector. Under a PPP scheme, the private sector can
build, operate and maintain public infrastructure facilities and provide services
traditionally delivered by government. Examples of these are roads, airports,
bridges, hospitals, schools, prisons, railways, and water and sanitation projects.
What is the legal basis for entering into PPPs?

Republic Act (RA) 6957 as amended by RA 7718 (commonly known as the BOT
Law) and its Implementing Rules and Regulations (IRR) is the legal framework when
government enters into PPP.
Who can enter into PPP?

Government implementing agencies (IAs) can enter into PPP. BOT Law and its IRR
defines an “Agency” referring to any department, bureau, office commission,
authority or agency of the national government, including Government-Owned
and/or –Controlled Corporations (GOCCs), Government Financial institutions (GFIs),
and State Universities and Colleges (SUCs) authorized by law or their respective
charters to contract for or undertake Infrastructure or Development Projects.
Who will own these PPP projects?

In a PPP scheme, it is the government who will own these PPP projects. Even as
the private partners builds, operates and maintains these projects, ownership
remains with the government.
What types of projects can government undertake as a PPP project?

There are multiple infrastructure and development projects that are eligible as PPP.
These include highways/ roads, railroads/ railways, ports, airports, transport
systems, ICT systems/ facilities, agriculture, canals/ dams/ irrigation, water supply,
land reclamation, solid waste management, tourism facilities, education, health
facilities, industrial/ tourism estates, public markets/ warehouses/ slaughterhouses,
housing, government buildings, and climate change mitigation/ adaptation
infrastructure project, among others.
Who may qualify as bidders of these PPP projects?

According to Section 5.1 of the BOT Law IRR , any individual, partnership,
corporation, firm, whether local or foreign, including consortia of foreign or local and
foreign firms can participate or apply for pre-qualification or simultaneous
qualification for ppp projects. However, if the project involves the operation of a
public utility, the operator must be at least 60% Filipino owned.