Podcast
Questions and Answers
What is the primary purpose of budgeting principles?
What is the primary purpose of budgeting principles?
- To measure company performance
- To track personal goals
- To promote national development (correct)
- To maintain personal journals
What is meant by 'open, transparent, and accessible' budget documents and data?
What is meant by 'open, transparent, and accessible' budget documents and data?
- They are only accessible through special requests
- They are confidential documents
- Only government officials can access them
- They are available to the general public (correct)
What is organizational accountability tracking used for?
What is organizational accountability tracking used for?
- To monitor national development
- To keep personal journals
- To measure company performance (correct)
- To track personal goals
What is the purpose of closely aligning budgets with the medium-term strategic priorities of the government?
What is the purpose of closely aligning budgets with the medium-term strategic priorities of the government?
What is personal accountability tracking used for?
What is personal accountability tracking used for?
What is the purpose of presenting a comprehensive, accurate, and reliable account of public finances?
What is the purpose of presenting a comprehensive, accurate, and reliable account of public finances?
Why is it important to design the capital budgeting framework in a cost-effective and coherent manner?
Why is it important to design the capital budgeting framework in a cost-effective and coherent manner?
What is the purpose of actively planning, managing, and monitoring budget execution?
What is the purpose of actively planning, managing, and monitoring budget execution?
What is the primary objective of using public revenue and public expenditure?
What is the primary objective of using public revenue and public expenditure?
What is referred to as the income of the state?
What is referred to as the income of the state?
When does the government borrow?
When does the government borrow?
What deals with the methods of budget preparation, authorization, execution, and accountability?
What deals with the methods of budget preparation, authorization, execution, and accountability?
What is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country?
What is the critical exercise of allocating revenues and borrowed funds to attain the economic and social goals of the country?
What is the result of a growing deficit when the economy is close to full capacity?
What is the result of a growing deficit when the economy is close to full capacity?
What is a major area of government activity through fiscal operations?
What is a major area of government activity through fiscal operations?
According to Keynes, what is the benefit of borrowing in a recession?
According to Keynes, what is the benefit of borrowing in a recession?
What is Value-Added Tax (VAT) according to the Tax Code of 1997?
What is Value-Added Tax (VAT) according to the Tax Code of 1997?
Why is it difficult to reduce tax rates?
Why is it difficult to reduce tax rates?
What is the purpose of the sin tax?
What is the purpose of the sin tax?
What is the problem with the tax system according to the text?
What is the problem with the tax system according to the text?
Why do compensation earners end up paying more in taxes?
Why do compensation earners end up paying more in taxes?
What is the effect of tax evasion on the government's revenue?
What is the effect of tax evasion on the government's revenue?
What is the characteristic of Value-Added Tax (VAT) as an indirect tax?
What is the characteristic of Value-Added Tax (VAT) as an indirect tax?
What should be the characteristic of the rules of the tax system?
What should be the characteristic of the rules of the tax system?
What is the primary function of a public-private partnership?
What is the primary function of a public-private partnership?
How much does the government lose annually due to tax evasion?
How much does the government lose annually due to tax evasion?
What is the main goal of the attached agency of the Department of Finance?
What is the main goal of the attached agency of the Department of Finance?
What type of corporation is a Government-Owned and Controlled Corporation (GOCC)?
What type of corporation is a Government-Owned and Controlled Corporation (GOCC)?
What is the main focus of public finance?
What is the main focus of public finance?
What is the benefit of public-private partnerships in delivering public services?
What is the benefit of public-private partnerships in delivering public services?
What is the purpose of the attached agency of the Department of Finance in terms of trade?
What is the purpose of the attached agency of the Department of Finance in terms of trade?
What is the result of tax evasion on the government's revenue?
What is the result of tax evasion on the government's revenue?
What is the primary aim of investment incentives?
What is the primary aim of investment incentives?
What is initiated through the issuance of a Budget Call?
What is initiated through the issuance of a Budget Call?
What is the role of the Development Budget Coordination Committee (DBCC)?
What is the role of the Development Budget Coordination Committee (DBCC)?
What type of incentive is a tax holiday?
What type of incentive is a tax holiday?
What is the purpose of investment incentives in shaping the benefits of foreign direct investment?
What is the purpose of investment incentives in shaping the benefits of foreign direct investment?
What is included in the Budget Call issued by the Department of Budget and Management (DBM)?
What is included in the Budget Call issued by the Department of Budget and Management (DBM)?
What is the purpose of providing financial incentives?
What is the purpose of providing financial incentives?
What is the broader context in which investment incentives are effective?
What is the broader context in which investment incentives are effective?
Study Notes
Types of Taxes
- Value-Added Tax (VAT): a form of sales tax on consumption of goods and services in the Philippines and on importation of goods
- Sin Tax: excise taxes on potentially harmful goods (e.g. sugar-sweetened beverages, tobacco, and alcohol) to reduce consumption and raise revenue
Tax Issues in the Philippines
- Tax evasion: the government loses around P500 billion annually
- Tax evasion affects tax rates and hinders reduction of tax rates
Budgeting Principles
- Manage budgets within clear, credible, and predictable limits for fiscal policy
- Closely align budgets with national development needs in a cost-effective and coherent manner
- Design capital budgeting framework to meet national development needs
- Ensure budget documents and data are open, transparent, and accessible
- Provide for inclusive, participative, and realistic debate on budgetary choices
- Present a comprehensive, accurate, and reliable account of public finances
- Actively plan, manage, and monitor budget execution
Organizational and Personal Accountability Tracking
- Individuals set goals and track progress towards achieving them (e.g. using journals, planners, or apps)
- Companies use performance metrics to track progress towards specific business objectives (e.g. tracking sales figures, customer satisfaction ratings, or employee productivity metrics)
Public-Private Partnerships (PPPs)
- Collaboration between government agencies and private-sector companies to finance, build, and operate projects (e.g. public transportation networks, parks, and convention centers)
- Can increase the quality, efficiency, and competitiveness of public services
Tax Code of 1997 (Tax Code)
- Specifies deductions authorized for certain types of income
- Less deductions, if any, for such types of income
Public Finance
- Studies the way revenue is raised and expenditure is incurred upon different items to maintain economic stability
- Major activities: fiscal policy formulation, taxation and revenue administration, budgeting and expenditure, public borrowings and debt management, and accounting and auditing
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Description
This quiz covers the Tax Code of 1997 and its amendments, including deductions and special laws, as well as Value-Added Tax (VAT) in the Philippines.