Fiscal adequacy,

allocative efficiency,
and administrative
feasibility of the
budget process
AILEEN B. PENTOJO
OUTLINE
• Definition of
a.Fiscal Adequacy
b. Allocative efficiency
c. Administrative
Feasibilty
2. 2024 Priority Budget
Fiscal Adequacy

The principle of fiscal adequacy states that the

sources of revenue of the government should be
sufficient to meet the demand of the public
expenditures regardless of business condition
Administrative Feasibility
The tax system should be capable of being
effectively administered and enforced with the
least inconvenience to the taxpayer.
Allocative efficiency

is an efficient market whereby all goods and

services meet the needs and wants of society.
Allocative efficiency ensures that resources are
used so that their marginal benefit to society is
equal to their marginal cost.
2024 BUDGET PRIORITIES
FRAMEWORK (EXPENDITURE
PRIORITIES)
Expenditure Directions
2024 BUDGET PRIORITIES
FRAMEWORK (EXPENDITURE
PRIORITIES)
Expenditure Directions
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions

Health
• Promote reforms in nutrition and health aligned with health sector reforms
such as the Universal Health Care (UHC) Act and the First 1,000 Days
Law
• Strengthen the implementation of the Mental Health Act
• Manage the endemic phase of COVID-19 through improved healthcare
system and intensive health promotion
• Enhance national and local capacities for health system management and
resilience to public health emergencies
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
Education
• Strengthen efforts to improve education quality and address impacts of
learning losses from prolonged school closures during the pandemic.
• Implement interventions such as the Basic Education Learning Continuity
Plan and Excellence in Teacher Education Act, as well as development of
catch-up education programs and other innovative approaches to address
learning losses
• Align policy interventions, such as streamlining the K to 12 Curriculum
into the Most Essential Learning Competencies, and designing Technical-
Vocational Education and Training programs with the demands of the labor
market
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
Social Protection

• Strengthen the digitalization of services and facilities in the delivery of

social protection assistance.
• Promote the use of digital wallets and other innovative financial platforms
for efficient and effective distribution of social protection programs
• Reduce shocks to household incomes and casualties due to
disasters/calamities
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
2024 BUDGET PRIORITIES FRAMEWORK
(EXPENDITURE PRIORITIES)
Expenditure Directions
references:
https://www.dbm.gov.ph/index.php/2024/2024-budget-priorities-
framework-expenditure-priorities
https://www.dbm.gov.ph/index.php/2024/2024-budget-priorities-framewo
rk-expenditure-priorities

https://www.projectjurisprudence.com/2019/12/principles-of-sound-tax-
system.html