Economics of Planning: Objectives and Types

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Questions and Answers

What is public expenditure primarily used for?

To fulfill collective needs and wants of citizens (correct)

To impose fees and penalties on citizens

To issue licenses and certificates

To pay off public debt

What is public debt also known as?

Public expenditure

Financial administration

Sovereign debt (correct)

National deficit

What is financial administration concerned with?

Making available money to various branches of an organization (correct)

Collection of fees and penalties

Management of public debt

Implementation of public expenditure

What is economic stability characterized by?

Constant output growth and low and stable price inflation (D) Signup and view all the answers

What is an example of a non-tax source of revenue?

Fee for licenses and certificates (B) Signup and view all the answers

What is the primary goal of financial administration?

To make available money to various branches of an organization (A) Signup and view all the answers

What is a key factor in achieving economic stability?

Price level stability (D) Signup and view all the answers

What is included in public expenditure?

Salaries of government employees (D) Signup and view all the answers

Which department has the second-largest budget allocation?

Department of Social Welfare and Development (A) Signup and view all the answers

What is the primary focus of the FY 2021 GAA in addressing the COVID-19 pandemic?

Health-related response programs (C) Signup and view all the answers

How many indigent families are expected to benefit from the National Health Insurance Program?

Thirteen million (D) Signup and view all the answers

What is the purpose of the PhP4.7 billion allocation?

Procurement of personal protective equipment (C) Signup and view all the answers

How many GeneExpert cartridges are to be procured with the additional budget of PhP1.0 billion?

861,720 (C) Signup and view all the answers

What is the total budget allocation for the repair, upgrading, and construction of health facilities?

PhP7.8 billion (B) Signup and view all the answers

Which department has the largest budget allocation?

Department of National Defense (D) Signup and view all the answers

What is the purpose of the Human Resources for Health Program?

Deployment of healthcare workers (D) Signup and view all the answers

What is a major problem associated with budgeting?

Inaccuracy due to changes in operating conditions (A) Signup and view all the answers

What can cause actual results to depart from budgeted expectations?

All of the above (D) Signup and view all the answers

What is a limitation of the budgeting process?

It focuses on strategy only during budget formulation (A) Signup and view all the answers

What can happen if management does not override the budget during an economic downturn?

Managers will continue to spend under their original budgetary authorizations (A) Signup and view all the answers

What is included in theBudget and Expenditure Framework Statement (BESF)?

Macroeconomic assumptions and public sector context (A) Signup and view all the answers

What is a consequence of budget inaccuracy?

Actual results will depart from budgeted expectations (C) Signup and view all the answers

What is a characteristic of the budgeting process?

It is a rigid process that only focuses on strategy during budget formulation (B) Signup and view all the answers

What is the main problem with the healthcare system in the Philippines?

It is broken and in need of reform. (A) Signup and view all the answers

What does the author suggest is the root cause of the country's problems?

Bad leadership and government's lack of competence and imagination. (A) Signup and view all the answers

What is the author's call to action for ordinary Filipinos?

To participate in the budget deliberations. (D) Signup and view all the answers

What is the author's main concern about the 2021 budget?

It lacks innovation and imagination. (B) Signup and view all the answers

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

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Description

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.