Fiscal Institutions in the Philippine Government

Department of Finance (DOF) (Filipino: Kagawaran ng Pananalapi) is the executive department of the
Philippine government responsible for the formulation, institutionalization and administration of fiscal
policies, management of the financial resources of the government, supervision of the revenue
operations of all local government units.

The Bureau of Local Government Finance or BLGF is the Department of Finance’s arm directly
responsible over the fiscal and financial affairs of local government.

The Department of Budget and Management formulates the overall resource application strategy to
match the government’s macro-economic policy.

The Bureau of Internal Revenue (BIR) (Filipino: Kawanihan ng Rentas Internas) is an attached agency of
Department of Finance. BIR collects more than one-half of the total revenues of the government. The
powers and duties of the Bureau of Internal Revenue are:

Land Bank of the Philippines (LBP) is a financial institution wholly owned by the Philippine National
Government. It was created under the Agrarian Reform Law enacted by Congress in 1963. Later, LBP
became the first universal bank by charter with expanded commercial banking powers to sustain its
social mission of spurring countryside development. The bank is directly under the administrative
supervision of the Department of Finance (DOF). As a bank, it is under the regulatory supervision of BSP.
It is audited by the Commission on Audit.

The Development Bank of the Philippines (Filipino: Bangko sa Pagpapaunlad ng Pilipinas), commonly
known by its initials, DBP, is a state-owned development bank. DBP services various sectors of Philippine
society, from farmers to businessmen. Although the Philippines has an economy largely dependent on
agriculture, DBP aims for national development through financing the various business and economic
sector that keep the Philippine economy afloat.

The Bangko Sentral ng Pilipinas (BSP) -the country’s central monetary authority. The BSP enjoys fiscal
and administrative autonomy from the National Government in the pursuit of its mandated
responsibilities.

The Philippine National Bank was established as a government-owned banking institution on July 22,
1916. Its primary mandate was to provide financial services to Philippine industry and agriculture and
support the government’s economic development effort.

The Commission on Audit is an independent constitutional commission established by the Constitution

of the Philippines. It has the primary function to examine, audit and settle all accounts and expenditures
of the funds and properties of the Philippine government.

A. Development Budget Coordination Committee (DBCC) ● Development Budget Coordination

Committee (DBCC) is the Committee tasked to estimate revenues and recommend sources of financing.
As a fiscal body, it formulates policies governing revenues, expenditures and debt management.

B. Implementing Agencies ● Agencies mandated to raise revenues include the Bureau of Internal
Revenue, Bureau of Customs, Land Registration Commission, and other regulatory offices. The Bureau of
Treasury is mandated to manage debt policy. The rest of the agencies implement the expenditure
policies.

C. Congress ● The legislative bodies provide the legal framework for the implementation of fiscal
policies. They ensure that fiscal policy is not only sound but also implementable and realistic.

D. Commission on Audit ● The Commission on Audit (COA) ensures that agencies abide with the
generally accepted rules and regulations in implementing their functions. The COA is also the agency
that prepares the annual financial report of the government.