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PUBLIC FINANCE
• The study of the role of the government in the
economy.
• defined as the aspect of economics which deals
with government revenue and expenditure. It
involves the financial activities of government
as they relate to revenue or income expenditure
and debt operation and their overall effect on
the economy.
OBJECTIVES OF PUBLIC FINANCE
1. Provision of employment
2. Revenue generation
3. Satisfaction of needs
4. Price stabilization
5. Equitable distribution of income
SOCIALIST ECONOMY
An economic theory of social organization that advocates
that the means of production, distribution, and
exchange should be owned or regulated by the
community as a whole.
TOP 10 MOST SOCIALIST COUNTRIES IN THE WORLD
• China
• Denmark
• Finland
• Netherlands
• Canada
• Sweden
• Norway
• Ireland
• New Zealand
• Belgium
PUBLIC FISCAL ADMINISTRATION
Refers to the

• Formulation
• Implementation • Taxation
• Evaluation • Revenue Administration
• Resource Allocation
• Budgeting
• Public Expenditure
• Borrowing
of the • Debt Management
Policies and • Accounting
Decisions on • Auditing
HISTORY OF PHILIPPINE FINANCIAL MANAGEMENT

Fiscal policy during the Marcos administration was

primarily focused on indirect tax collection and on
government spending on economic services and
infrastructure development.
The first Aquino administration inherited a large fiscal
deficit from the previous administration, but managed
to reduce fiscal imbalance and improve tax collection
through the introduction of the 1986 Tax Reform
Program and the value added tax.
The Ramos administration experienced budget surpluses due to
substantial gains from the massive sale of government assets
and strong foreign investment years and administrations.
The Estrada administration faced a large fiscal deficit due to the
decrease in tax effort and the repayment of the Ramos
administration’s debt to contractors and suppliers.
During the Arroyo administration, the Expanded Value Added Tax
Law was enacted, national debt-to-GDP ratio peaked, and
underspending on public infrastructure and other capital
expenditures was observed.