Public vs. Private Finance Overview

Program Chair and Faculty Information

• Prof. Corazon Urbis is the Program Chair of BSBA Financial Management and the Treasurer of UNP Faculty Union.
• Prof. Urbis holds a BSBA in Banking and Finance, a Master's in Public Administration, and is currently completing a Doctor of Business Administration.
• Prof. Urbis has held various leadership positions at the College of Business Administration and Accountancy, including Disciplinal Chair for the BSBA-FM program.
• Prof. Katherine A. Rabbon is a Faculty Member at the College of Business Administration and Accountancy.
• Prof. Rabbon holds a BSBA in Financial Management and a Master's in Business Administration.
• Prof. Rabbon is currently pursuing a Doctor of Business Administration and is an active member of various professional organizations.

Public Finance vs. Private Finance

• The primary goal of both private and public finance is to meet the needs of the population.
• Public finance focuses on satisfying public wants, while private finance focuses on private wants.
• Public wants are those that cannot be satisfied through market mechanisms and are not subject to exclusion principles.
• Private wants are those that are satisfied through market mechanisms where exclusion principles apply based on the individual's ability to pay.
• Public finance relies on taxation, printing money, public borrowing, and the sale of public assets and services to fund its operations.
• Private finance uses market securities and private income or assets for funding.
• Public budgets begin with expenditure needs, while private budgets start with income estimations.

Fiscal Policy in the Philippines

• Fiscal policy in the Philippines involves a mix of tax, spending, and borrowing policies to achieve government objectives.
• Fiscal policy aims to achieve economic stability, promote growth, and distribute income equitably in the Philippines.
• Examples of fiscal policies in the Philippines include taxing more during expansions and spending more during recessions to stabilize the economy.

Understanding Public Finance

• Public finance is the study of the government's revenue and spending patterns and their impact on the economy.
• It focuses on collecting and spending government funds including taxation, expenditure, budget preparation, and debt management.
• Public finance is essential for ensuring the government can fulfill its role in the economy and achieve its objectives.

Key Functions of Government in the Economy

• Government plays a crucial role in a free enterprise economy by promoting economic freedom, efficiency, growth, stability, and security.
• The government's allocation function involves providing public goods that the market cannot provide efficiently.
• The distribution function aims to address wealth inequality by redirecting resources from the wealthy to the less-wealthy.
• The stabilization function stabilizes the economy by mitigating unemployment and inflation and improving living standards.

This quiz explores the key differences and similarities between public and private finance. It highlights the roles of financial management in meeting the needs of the population and includes insights from faculty experts in the field. Test your understanding of these important concepts!