27 Questions
What is public expenditure primarily used for?
To fulfill collective needs and wants of citizens
What is public debt also known as?
Sovereign debt
What is financial administration concerned with?
Making available money to various branches of an organization
What is economic stability characterized by?
Constant output growth and low and stable price inflation
What is an example of a non-tax source of revenue?
Fee for licenses and certificates
What is the primary goal of financial administration?
To make available money to various branches of an organization
What is a key factor in achieving economic stability?
Price level stability
What is included in public expenditure?
Salaries of government employees
Which department has the second-largest budget allocation?
Department of Social Welfare and Development
What is the primary focus of the FY 2021 GAA in addressing the COVID-19 pandemic?
Health-related response programs
How many indigent families are expected to benefit from the National Health Insurance Program?
Thirteen million
What is the purpose of the PhP4.7 billion allocation?
Procurement of personal protective equipment
How many GeneExpert cartridges are to be procured with the additional budget of PhP1.0 billion?
861,720
What is the total budget allocation for the repair, upgrading, and construction of health facilities?
PhP7.8 billion
Which department has the largest budget allocation?
Department of National Defense
What is the purpose of the Human Resources for Health Program?
Deployment of healthcare workers
What is a major problem associated with budgeting?
Inaccuracy due to changes in operating conditions
What can cause actual results to depart from budgeted expectations?
All of the above
What is a limitation of the budgeting process?
It focuses on strategy only during budget formulation
What can happen if management does not override the budget during an economic downturn?
Managers will continue to spend under their original budgetary authorizations
What is included in theBudget and Expenditure Framework Statement (BESF)?
Macroeconomic assumptions and public sector context
What is a consequence of budget inaccuracy?
Actual results will depart from budgeted expectations
What is a characteristic of the budgeting process?
It is a rigid process that only focuses on strategy during budget formulation
What is the main problem with the healthcare system in the Philippines?
It is broken and in need of reform.
What does the author suggest is the root cause of the country's problems?
Bad leadership and government's lack of competence and imagination.
What is the author's call to action for ordinary Filipinos?
To participate in the budget deliberations.
What is the author's main concern about the 2021 budget?
It lacks innovation and imagination.
Study Notes
Objectives of Planning
- To understand the scope of economic planning
- To understand the objectives of planning
Scope of Planning
- Public finance and its origin
- Scope of public finance
- Public vs private finance
- Fiscal functions
- Interaction of private and public sectors
Public Expenditure
- Spending made by the government on collective needs and wants
- Examples: pensions, provisions, security, infrastructure, healthcare, and other social services
- Salaries of those employed by the government are also part of public expenditure
Public Debt
- The amount a country owes to lenders outside of itself
- Includes individuals, businesses, and other governments
- Often referred to as sovereign debt
Financial Administration
- Refers to the organization and management of collective human efforts
- Involves making available money to various branches of an organization
- Enables organizations to carry out their objectives
Economic Stability and Growth
- Refers to the absence of excessive fluctuations in the overall economy
- Characterized by constant output growth and low and stable price inflation
- Key to economic stability is price level stability
Banner Programs and Projects for FY 2021
- Addressing the COVID-19 pandemic
- Prioritizing health-related COVID-19 response programs
- Budgetary support for the National Health Insurance Program
- Deployment of doctors, nurses, and other health workers to disadvantaged communities
- Procurement of personal protective equipment and GeneExpert cartridges
Critique of the 2021 Budget Proposal
- Fails to introduce much-needed budget reforms
- Lacks imagination and fails to address long-standing problems
- Offers mediocre programs and neglects to prioritize healthcare and social welfare
Problems in Government Budgeting
- Inaccuracy due to changing business environment
- Rigid decision making, focusing only on strategy during budget formulation period
This quiz covers the planning of economic planning, objectives of planning, and types of economic planning, as discussed in the book 'Economics of the Public Sector' 3rd edition.
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