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# **Taxation and Budget in the Philippines** This document discusses the concept of taxation and budget in the Philippines. ## **Income Taxation** * **Definition:** Money collected from citizens. * **Purpose:** To fund government activities. * Types: * **Direct Taxes:** Taxes paid dir...

# **Taxation and Budget in the Philippines** This document discusses the concept of taxation and budget in the Philippines. ## **Income Taxation** * **Definition:** Money collected from citizens. * **Purpose:** To fund government activities. * Types: * **Direct Taxes:** Taxes paid directly by individuals or businesses. (Examples: income tax, withholding tax). * **Indirect Taxes:** Taxes collected from products or services. (Example: value-added tax) ## **Tax Examples** * **Income Tax:** Tax levied on earnings of individuals. * **Road User's Tax:** Tax on vehicle owners. * **Realty Tax:** Property tax * **Business Tax:** Tax on businesses. * **Value Added Tax (VAT):** Tax on various goods and services. * **Amusement Tax:** Entertainment activities * **Import Duties Tax:** Importation of foreign goods ## **Government Agencies for Taxation** * **Bureau of Internal Revenue (BIR):** Collects taxes within the country. * **Bureau of Customs (BOC):** Collects taxes on imports. ## **National Budget** * **Definition:** A plan outlining government expenses for a fiscal year. * **Purpose:** To allocate funds effectively. * **Components:** * **Income:** Projected revenue * **Expenditures:** Detailed spending plans * **Programs:** Government projects * (Examples: defense, education, health) ## **National Budget Preparation** * **Department of Budget and Management (DBM):** Responsible for planning. * **Congress:** Approves the budget. * **Government Offices/Agencies:** Execute the budget. * **Commission on Audit (COA):** Oversees the budget execution. ## **Government Budget Spending** * **Personal Services (PS):** Employee salaries. * **Maintenance and Other Operating Expenses (MOOE):** Operations (utilities etc) * **Capital Outlay (CO):** Investments (buildings, equipment) * **Services (Sector Categories):** Government expenditures based on sectors of emphasis. ## **Budget Outcomes** * **Budget Deficit:** Expenses exceed income. * **Budget Surplus:** Income exceeds expenses. ## **Monetary Policy** * (General description of the government's economic policies, presumably).