SWPP Reviewer (Last Part) PDF

SWPPS EXECUTIVE ⚫ The Executive Branch carries out laws. 6. Other powers Line Of Succession: ⚫ In general, the executive branch sets the direction of...

SWPPS EXECUTIVE ⚫ The Executive Branch carries out laws. 6. Other powers Line Of Succession: ⚫ In general, the executive branch sets the direction of Should there be a vacancy of the Office of the Vice President, the national policy. Line Of Succession: President of the Philippines is required by the constitution to ⚫ It is composed of the President, Vice President, and the The constitution provides for a line of succession in the event that nominate a replacement with the concurrence of Committee on Cabinet. the elected President of the Philippines is not able to discharge Appointments. ⚫ These departments form a large portion of the country´s the duties of his office due to death, disability, or resignation. The bureaucracy. following is the line of succession: Cabinet Secretaries UThe cabinet secretaries are tasked to advise the president on Article VII, Section 1, of the 1987 Constitution vests executive ⚫ Vice President — in cases of the death, disability, or the different affairs of the state like agriculture, budget, energy, power on the President of the Philippines. The President is the resignation of the President finance, education, social welfare, national defense, foreign Head of State and Head of Government, and functions as the ⚫ Senate President — in cases of the death, disability, or policy, and the like. They are nominated by the president and commander-in-chief of the Armed Forces of the Philippines. As resignation of the President and Vice President then presented to the Commission on Appointments, a body of chief executive, the President exercises control over all the ⚫ Speaker of the House of Representatives — in cases of the the Congress of the Philippines that confirms all appointments executive departments, bureaus, and offices. death, disability, or resignation of the President, Vice made by the president, for confirmation or rejection. If the President, and Senate President presidential appointees are approved, they are sworn into office, The President receive the title "Secretary", and begin to function their duties. The President of the Philippines is elected by direct vote by the Contrary to popular belief, the constitution doesn’t include the people for a term of six years. He may only serve for one term, Chief Justice of the Supreme Court in the President’s line of Functions Of a Cabinet Secretary: and is ineligible for re-election. The term of the President of the succession. The Congress of the Philippines is mandated enact a Cabinet secretaries act as the alter ego of the President Philippines starts at noon of the 30th day of June after the law calling for a special election three days after the vacancy in executing, with his authority, the power of the Office of the election. the Office of the President and Vice President. The special President in their respective departments. election should occur 40 days after the enactment of the law, but ⚫ natural born Filipino; not later than 60 days after the enactment of the law. The number of cabinet secretaries varies from time to time ⚫ a registered voter; depending on the need of an administration. According to the ⚫ must be able to read and write; Vice President Administrative Code of 1987, the President of the Philippines may ⚫ 40 years of age at the day of the election; and The Vice President of the Philippines is elected by direct vote by create or dissolve any department as he sees fit. ⚫ must have resided in the Philippines ten years before the the people fora term of six years, and may run for re-election election is held once. The term of the Vice President of the Philippines starts at Appointment Of Cabinet Secretaries: noon of the 30th day of June after a regular election is held. According to the Article 7, Section 16, the President may appoint Powers of the President: anyone to executive departments with the consent of the Besides the constitution, the powers of the President of the Qualifications: Commission on Appointments. Names of individuals nominated Philippines are specifically outlined in Executive Order No. 292, s. The qualifications for aspirants to the Office of the Vice President to cabinet posts are submitted to the Commission on 1987, otherwise known as the Administrative Code of 1987. The is outlined in Article VII, Section 3. According to the constitution, Appointments for their consideration. following powers are: the qualifications for the President is the same for the Vice President. An individual may not assume his post in a given department 1. Power of control over the executive branch unless confirmed by the Commission on Appointments. However, 2. Power ordinance power Duties of the Vice President: the constitution provides for individuals becoming cabinet ⚫ Executive orders According to the constitution, the vice president may concurrently secretaries in an acting capacity before they are confirmed. ⚫ Administrative orders assume a cabinet position should the President of the Philippines ⚫ Proclamations offer the former one. The vice president will become a secretary Not all cabinet members, however, are subject to confirmation of ⚫ Memorandum orders concurrent to the position of vice president. the Commission on Appointments. According to the Commission ⚫ Memorandum circulars Aside from the cabinet post, the vice president is mandated to of Appointments website, the following need confirmation in ⚫ General or special orders assume the presidency in case of the death, disability, or order to assume their posts: 3. Power over aliens resignation of the incumbent President. 4. Powers of eminent domain, escheat, land reservation and Executive Secretary recovery of ill-gotten wealth Power of appointment Secretary of Agrarian Reform 5. Power of general supervision over local governments Secretary of Agriculture 1 SWPPS Secretary of Budget and Management It reviews all appeals on sentences of life imprisonment Secretary of Education to death. Secretary of Energy Assign temporary judges of lower courts to other Secretary of Environment and Natural Resources stations as public interest may require. Such temporary Secretary of Finance assignment shall not exceed six months without the Secretary of Foreign Affairs consent of the judge concerned. Secretary of Health Order a change of venue or place of trial to avoid a Secretary of Justice miscarriage of justice. Secretary of Labor and Employment It can discipline judges of lower courts or order their Secretary of National Defense dismissal. Secretary of Public Works and Highways Secretary of Science and Technology Qualifications of the members of the Judiciary: Secretary of Social Welfare and Development (article VII, section 7) Secretary of the Interior and Local Government “Every member of the Judiciary be a person of proven Secretary of Trade and Industry competence, integrity, probity, and independence.” Secretary of Transportation and Communications The Manner of Appointment of The Members of The Qualifications of Justices and Judges: Secretary of Tourism Judiciary A. Justice of Supreme Court Commission on Higher Education (ARTICLE VIII, SECTION 9) “The members of the Supreme Be a natural born citizen of the Philippines Director General of the National Economic and Development Courts and Judges of the lower courts shall be appointed by the At least 40 years old Authority president from a list of at least three nominees prepared by the Been a judge of a lower court or engaged in the practice judicial and the bar council for every vacancy. Such appointment of law in the Philippines for 15 years or more. Powers Of the Cabinet Secretary: needs no confirmation. B. Judges of the lower courts As stated above, a cabinet secretary is the alter ego of the For the lower courts, the president shall issue the appointment A citizen of the Philippines. President in their respective departments. Thus, they posses the within ninety days from the submission of the list. A member of the Philippine Bar. power to issue directives relative to their departments, such as Be a person of proven competence, integrity, probity, department orders. These orders only apply to offices under a Supreme Court and independence. specific department under the cabinet secretary’s jurisdiction. Supreme court is the highest court of the land, it is the final Have a good record as a lawyer. Cabinet secretaries also act as advisors to the President of the arbiter of controversies and disputes brought by the parties to Have a good academic background and performance in Philippines for their areas. court law. the bar examinations. The supreme court has the power of Judicial Review, which Have leadership experience in the legal profession. allows it to declare laws, treaties, and other acts unconstitutional. Have the potential to serve as an appellate judge for 5 The Supreme Court also has the power to make rules about years. JUDICIAL protection of constitutional rights, legal assistance and more. The judicial and bar council (JBC) vet applicants for judicial COMPOSITION OF SUPREME COURT: positions by verifying their reputation and record for honesty, The Judicial Branch One chief justice integrity, and other qualities. The JBC may also conduct The judicial branch holds the power to settle controversies Fourteen associate justices background checks and receive public feedback on the applicant. involving rights that are legally demandable and enforceable. This branch determines whether or not there has been a grave abuse Power Of Supreme Court HIGHER COURTS of discretion amounting to lack or excess of jurisdiction on the It interprets the constitution and can declare any treaty, 1. Court Of Appeals (Coa) part and instrumentality of the government. It is made up of the executive order or legislative act invalid because it is in Is the highest tribunal in the country, which supreme court and lower courts. conflict with law. was established on February 1, 1936 by virtue The judicial branch interprets the meaning of laws, applies laws Exercise original jurisdiction over cases affecting to individual cases, and decides if laws violate the Constitution. of Commonwealth Act no. 3. It’s composed of ambassadors, other public ministers and consuls, and The judicial power shall be vested in one Supreme Court and in one Presiding justice and 68 Associate Justices, over petitions for certiorari, prohibition, mandamus, quo such lower courts as may be established by the law warranto, and habeas corpus. all of which are appointed by the President It is the court of last appeal that exercises appellate from a shortlist submitted by the Judicial and jurisdiction to review, revise, reverse, modify, or affirm Bar Council. the final judgement of lower courts. The CA reviews final decisions, resolutions, and orders from the Regional Trial Courts and 2 SWPPS quasi-judicial agencies. The CA also has marriage, legal separation, and the family-related Mindanao. Some towns and cities remit their revenue to national original jurisdiction over writs of mandamus, issues. In criminal cases, RTC’s have exclusive government and is returned through the national government prohibition, injunction, certiorari, and habeas jurisdiction over offenses punishable by through a process called internal revenue allotment. Below barangays in some cities and municipalities are sitios and puroks. corpus. The CA’s decisions are final unless imprisonment exceeding six years. All of these, with the exception of sitios and puroks, elect their appealed to the Supreme Court on questions 2. The Metropolitan Trial Courts own executives and legislatures. Sitios and puroks are often but of law. Are First Level Courts in the metropolitan Manila not necessarily led by an elected barangay councilor. 2. Court Of Tax Appeals area. They may be assigned by the Supreme Court Provinces and independent cities are organized into Which is the same level as the Court of to hear and determine cadastral or land national government regions but those are administrative regions Appeals, was created by virtue of Republic act. registration cases covering lots where there is no and not separately governed areas with their own elected No. 1125, which was signed into law on June controversy or opposition. governments. 16, 1954. The CTA is composed of one According to the Constitution of the Philippines, the local 3. Municipal Trial Court in Cities (MTCC) presiding justice and 8 associate justices, all of governments "shall enjoy local autonomy", and in which the which appointed by the Judicial and Bar A first level courts in a city outside of Metro Manila Philippine president exercises "general supervision". Congress 4. Municipal Trial Court (MTC) enacted the Local Government Code of the Philippines in 1991 to Council. The qualifications for the justices of the Court of Appeals also apply to members of A first level courts located in each municipality. "provide for a more responsive and accountable local government CTA. 5. Municipal Circuit Trial Courts structure instituted through a system of decentralization with A special court mandated to address the A first level courts located in two or more effective mechanisms of recall, initiative, and referendum, adjudication of appeals involving revenue tax municipalities. First level courts have original allocate among the different local government units their powers, and customs cases of the Commissioner of the jurisdiction over criminal matters, violations of city responsibilities, and resources, and provide for the qualifications, Customs, respectively. or municipal ordinances, certain civil cases, and election appointment and removal, term, salaries, powers and 3. Sandiganbayan cases involving forcible entry. A party may appeal functions and duties of local officials, and other matters relating A special graft court. This court was formally to a Regional Trial Court from a first-level court. to the organization and operation of local units." Local 6. Shari’a District Courts government units are under the oversight of the Department of established through Presidential Decree no. Established in a certain specified provinces in the Interior and Local Government, which is an executive 1606, which was signed into law on December Mindanao where the Code of Muslim Personal department tasked with assisting the president in exercising the 10, 1978. It shall have jurisdiction over criminal power of general supervision. Laws of the Philippines is being enforced. Cases and civil cases involving graft and corrupt falling within the exclusive jurisdiction of the practices and such other offenses committed by Shari’a District Courts primarily pertain to family LEVELS OF LOCAL GOVERNMENT the public officers and employees, including rights and duties as well as contractual relations AUTONOMOUS REGIONS those in government-owned or controlled of Filipino Muslims in the Mindanao. Autonomous regions have more powers than other local corporations. 7. Shari’a Circuit Courts governments. The constitution limits the creation of autonomous equivalent to the municipal circuit courts. regions to Muslim Mindanao and the Cordilleras but only one Sandiganbayan was created to maintain honesty established in certain municipalities in Mindanao. autonomous region exists: the Bangsamoro, which replaced the and efficiency in the bureaucracy, and to stamp Autonomous Region in Muslim Mindanao (ARMM). In 1989, a out corruption and to weed out misfits and The Shari’a Circuit Court has original jurisdiction plebiscite established the ARMM. In 2001, a plebiscite in the undesirable employees in the government over cases involving offenses under the Code of ARMM confirmed the previous composition of the autonomous composed of one Presiding Justice and 14 Muslim Personal Laws of the Philippines. region and added Basilan (except for the city of Isabela) and Associate Justices. Marawi in Lanao del Sur. Isabela City remains a part of the province of Basilan despite rejecting inclusion in the ARMM. In LOWER COURTS LGU & DEVOLUTION 2019, another plebiscite confirmed the replacement of the ARMM 1. The Regional Trial Courts LOCAL GOVERNMENT IN THE PHILIPPINES with the Bangsamoro, and added Cotabato City and 63 barangays Also known as the Second Level Courts and were In the Philippines, local government is divided into three in Cotabato. previously called the Court of First Instance. There levels: provinces and independent cities, component cities and A Cordillera Autonomous Region has never been formed municipalities, and barangays, all of which are collectively known because two plebiscites, in 1990 and 1998, both resulted in just are 13 Regional Trial Courts corresponding to the as local government units (LGUs). In some areas, above one province supporting autonomy; this led the Supreme Court 13 regions of the country and with around 772 ruling that autonomous regions should not be composed of just provinces and independent chartered cities are autonomous Regional Trial Judges. The RTC have exclusive one province. regions, such as the Bangsamoro Autonomous Region in Muslim original jurisdiction over actions for annulment of 3 SWPPS Each autonomous region has a unique form of the Bangsamoro, governor for the provinces, mayor for the cities in a plebiscite to be conducted by the Commission on Elections government. The ARMM had a regional governor and a regional and municipalities, and the barangay captain for the barangays. (COMELEC) in the local government unit or units directly affected. legislative assembly, mimicking the presidential system of the LEGISLATURES The Local Government Code has also set requisites for creating national government. The Bangsamoro will have a chief minister The legislatures review the ordinances and resolutions local government units. responsible to parliament, with parliament appointing a wa'lī, or enacted by the legislatures below. Aside from regular and ex- a ceremonial governor, in a parliamentary system. officio members, the legislatures above the barangay level also DEVOLUTION PROVINCES have three sectoral representatives, one each from women, INTRODUCTION Outside the lone autonomous region, the provinces are agricultural or industrial workers, and other sectors. Devolution in the Philippines refers to the transfer of the highest-level local government. The provinces are organized powers and responsibilities from the national government to local into component cities and municipalities. A province is governed RESPONSIBILITIES government units (LGUs). This process was significantly by the governor and a legislature known as the Sangguniang Among the social services and facilities that local institutionalized through the Local Government Code of 1991, Panlalawigan. government should provide, as stipulated in Section 17 of the which aimed to promote decentralization, enhance local CITIES AND MUNICIPALITIES Local Government Code, are the following: governance, and empower communities.The intent behind Municipal government in the Philippines is divided into facilities and research services for agriculture and devolution was to bring government closer to the people, three – independent cities, component cities, and municipalities fishery activities, which include seedling nurseries, allowing LGUs to respond more effectively to local needs and (sometimes referred to as towns). Several cities across the demonstration farms, and irrigation systems; conditions. It granted LGUs greater autonomy in areas such as country are "independent cities" which means that they are not health services, which include access to primary health, education, infrastructure, and environmental governed by a province, even though like Iloilo City the provincial health care, maternal and child care, and management, encouraging citizen participation in decision- capitol might be in the city. Independent city residents do not medicines, medical supplies and equipment; making processes. vote for nor hold provincial offices. Far more cities are component social welfare services, which include programs While devolution has led to improvements in local cities and are a part of a province. Municipalities are always a and projects for women, children, elderly, and governance and service delivery, challenges remain. These part of a province except for Pateros which was separated from persons with disabilities, as well as vagrants, include disparities in resources and capacities among LGUs, as Rizal to form Metro Manila. beggars, street children, juvenile delinquents, and well as issues related to accountability and governance. Overall, Cities and municipalities are governed by mayors and victims of drug abuse; devolution continues to play a critical role in shaping the political legislatures, which are called the Sangguniang Panlungsod in information services, which include job placement and administrative landscape of the Philippines, reflecting the cities and the Sangguniang Bayan in municipalities. information systems and a public library; ongoing quest for a more participatory and effective governance BARANGAYS a solid waste disposal system or environmental framework. Every city and municipality in the Philippines is divided management system; into barangays, the smallest of the local government units. municipal/city/provincial buildings, cultural HISTORICAL CONTEXT Barangays can be further divided into sitios and puroks but those centers, public parks, playgrounds, and sports PRE-DEVOLUTION ERA divisions do not have leaders elected in formal elections facilities and equipment; Prior to devolution, local governments operated under supervised by the national government. infrastructure facilities such as roads, bridges, significant national control. Key characteristics of this era A barangay's executive is the Punong Barangay or school buildings, health clinics, fish ports, water included: barangay captain and its legislature is the Sangguniang supply systems, seawalls, dikes, drainage and Limited Autonomy: Local governments had minimal Barangay, composed of barangay captain, the Barangay sewerage, and traffic signals and road signs; powers and were heavily reliant on national directives. Kagawads (barangay councilors) and the SK chairman. The SK state/local colleges and universities; Centralized Services: Major public services such as Chairman is the head of Sangguniang Kabataan which is public markets, slaughterhouses, and other local health, education, and infrastructure were predominantly composed of 1 SK Chairperson and 7 SK Kagawads that also leads enterprises; managed by national agencies. the assembly for youth, the Katipunan ng Kabataan or KK. public cemeteries, memorial parks/gardens, and Inefficiency and Corruption: The concentration of OFFICES columbariums; power often led to inefficiencies and corruption, with Local governments have two branches: executive and tourism facilities and other tourist attractions; and local needs frequently overlooked. legislative. All courts in the Philippines are under the Supreme sites for police and fire stations and substations LOCAL GOVERNMENT CODE OF 1991 Court of the Philippines and therefore there are no local- and municipal jail. The Local Government Code (Republic Act No. 7160) was government controlled judicial branches. Nor do local water districts enacted on October 10, 1991, under President Corazon Aquino. governments have any prosecutors or public defenders, as those CREATION AND MODIFICATION Key features of the code include: are under the jurisdiction of the national government. As a matter of principle, higher legislative entities have Decentralization: It devolved responsibilities to LGUs, The executive branch is composed of the Wali as the the power to create, divide, merge, abolish, or substantially alter including health, education, and public works. head of region and Chief Minister as the head of government for boundaries of any lower-level local government through a law or Empowerment: LGUs were empowered to create their ordinance, all subject to approval by a majority of the votes cast own revenue-raising mechanisms. 4 SWPPS Community Participation: It encouraged citizen Empowerment of Local Governments: LGUs have more Community-Based Programs: Local governance engagement in local governance. control over local affairs, enabling them to tailor structures facilitate grassroots participation and KEY STATISTICS responses to their specific needs (Republic Act No. empower community members. Governance Framework: The code divided LGUs into 7160, 1991). 8. Crisis Management four levels: provinces, cities, municipalities, and Local Decision-Making: Elected officials can make Local Response Capabilities: In crises, such as natural barangays. decisions that reflect community preferences and disasters, LGUs can mobilize resources quickly to meet Population Representation: LGUs were designed to circumstances, enhancing governance relevance (De community needs. bring governance closer to the people, catering to Guzman, 2016). approximately 110 million Filipinos as of 2023. 2. Enhanced Accountability CHALLENGES OF DEVOLUTION IN THE PHLIPPINES OBJECTIVES OF DEVOLUTION Closer Oversight: Local officials are more directly 1. Fiscal Imbalance - Many local government units (LGUs) 1. Decentralization of Power - enhance local decision- accountable to their constituents, which fosters are heavily reliant on Internal Revenue Allotments (IRA) making and reduce the burden on the national transparency and responsiveness (Philippine Institute from the national government, which can limit their fiscal government. for Development Studies, 2022). independence and sustainability. This dependency often 2. Enhanced Local Governance - promote accountability Community Engagement: Increased opportunities for constrains their ability to fund local initiatives and services and responsiveness to local needs. citizen participation encourage public scrutiny and effectively. 3. Community Participation - encourage local accountability (UN-Habitat, 2019). Example: The municipality of San Juan in Metro Manila has communities to engage in governance, leading to more 3. Improved Service Delivery historically relied on IRA for a significant portion of its relevant and effective policies. Tailored Services: LGUs can develop programs that cater budget. This reliance restricts its capacity to generate 4. Economic Development - foster local economic growth specifically to local needs, improving the relevance and independent revenue and diminishes local governance through targeted programs and investments. effectiveness of services autonomy, making it challenging to implement unique local Local Health and Education Initiatives: Many LGUs have projects. STRUCTURE OF DEVOLUTION successfully launched targeted health and education 2. Capacity Issues - A number of LGUs, particularly in Local Government Units (LGUs) programs that lead to better outcomes. remote or rural areas, lack the administrative and technical The Philippines is organized into: 4. Economic Development skills necessary to implement devolved functions effectively. Provinces: 81 provinces, with varied resources and Local Revenue Generation: LGUs can impose taxes and This can lead to inefficiencies and poor service delivery. capacities. fees, enabling them to generate revenue for local Example: In Talakag, Bukidnon, local officials faced Cities: 146 cities, including highly urbanized and projects. challenges in managing health services due to a shortage component cities. Support for Local Businesses: Devolution encourages of trained personnel and resources. This inadequacy Municipalities: 1,489 municipalities, often facing initiatives that support local economic development, resulted in lower health outcomes, demonstrating how challenges in governance. fostering job creation. capacity limitations can hinder effective governance. Barangays: Over 42,000 barangays, representing the 5. Fostering Innovation 3. Political Dynasties - The presence of political dynasties grassroots level of governance. Experimentation with Policies: LGUs can pilot new can concentrate power in the hands of a few families, Powers and Functions of LGUs approaches, allowing for adaptation and replication of leading to nepotism and corruption. This undermines The Local Government Code delineates specific powers successful strategies. democratic processes and limits opportunities for new and functions: Responsive Solutions: Local governments can quickly leadership and ideas. 1. Legislative Powers: LGUs can enact local ordinances implement innovative solutions to emerging issues Example: In Cavite, certain families have maintained and resolutions to address community-specific issues. without waiting for national directives. political control for generations, making it difficult for new 2. Administrative Powers: Local executives manage local 6. Strengthened Local Governance Capacity leaders to emerge. This concentration of power can stifle affairs and oversee the implementation of local policies Capacity Building: Devolution has led to investments in innovation in governance and limit responsiveness to and programs. capacity-building initiatives for local officials, enhancing community needs. 3. Fiscal Powers: LGUs have the authority to impose local governance quality. 4. Inconsistencies in Implementation - There is often a taxes, fees, and charges to generate revenue. Professionalization of Local Governance: Enhanced significant disparity in the implementation of local training and resources contribute to more competent governance initiatives across different regions, leading to ADVANTAGES OF DEVOLUTION local administrations (UN-Habitat, 2019). unequal service delivery and development outcomes. Devolution in the Philippines has yielded several 7. Social Inclusion Example: The educational services provided in urban LGUs significant advantages that enhance governance and public Empowerment of Marginalized Groups: Devolution has like Makati are often far superior to those in rural areas like service delivery. Below are the key benefits, supported by the potential to involve marginalized communities in Sorsogon. This inconsistency highlights the varying references. decision-making, promoting social equity. capacities of LGUs and the resultant inequalities in service 1. Increased Local Autonomy delivery. 5 SWPPS 5. Intergovernmental Relations - Coordination and 2. Corporate - Corporate income taxes are applied to the trade of imported products while raising government communication between national and local governments profits of businesses. After deducting expenses like salaries, revenue. can be problematic, especially during crisis situations. This equipment, and utilities, the remaining profit is taxed. The 2. Excises on domestic articles - Similar to the import excise can lead to inefficiencies and delays in policy tax rate can vary based on the country and the size or type tax, this is applied to certain goods produced within the implementation. Example: During Typhoon Haiyan (Yolanda) in 2013, of business. country, such as alcohol, tobacco, and petroleum products. confusion arose regarding the roles of national and local 3. Miscellaneous - This includes taxes on other forms of It's meant to raise funds and sometimes discourage authorities, causing delays in disaster response and aid income that don't fall under regular salary or corporate consumption of specific items. distribution. This situation illustrates the challenges in earnings. 3. Business taxes and licenses - Businesses are required to intergovernmental relations during emergencies. Examples include: pay taxes and secure licenses to operate legally. This 6. Public Participation Issues - While devolution aims to - Capital Gains Tax: Applied to profits from selling assets includes taxes on revenue and licensing fees for operating in enhance public participation in governance, many citizens like stocks or real estate. specific sectors. This helps ensure that businesses contribute remain disengaged or unaware of their rights to participate. - Rental Income Tax: Applied to earnings from renting to the local economy and comply with government This lack of engagement can weaken democratic processes at the local level. out property. regulations. Example: In Quezon City, despite mechanisms for public - Royalty Income Tax: On earnings from intellectual 4. Franchise tax - A tax imposed on certain businesses or participation being in place, many residents do not actively property like books, music, or inventions. individuals for the privilege of doing business in a specific engage in local governance due to apathy or lack of PROPERTY TAXES area or operating within a certain industry. It’s often required information, limiting the effectiveness of participatory 1. Real Property - These are taxes on land and buildings for companies providing specific services like utilities, initiatives. you own, based on their value. Local governments use transportation, or telecommunications 7. Sustainability of Local Initiatives - Many local projects this money to fund things like schools, roads, and public 5. Motor vehicle taxes - Taxes on vehicles, which may lack sustainability due to insufficient long-term planning and reliance on external funding. Changes in local leadership services. include registration fees, road usage taxes, and other can also disrupt ongoing initiatives. 2. Property transfers - When you buy or sell property, charges related to owning or operating a motor vehicle. Example: Community clean-up drives in provinces like taxes are charged on the transfer. This includes taxes on These taxes help maintain road infrastructure and contribute Palawan often see a lack of continuity. When leadership the sale profits and legal documents involved in the to transport-related public services. changes, new administrations may prioritize different transaction initiatives, resulting in the abandonment of previously established programs. 3. Special Assessments - Extra charges for property TAXES ON INTERNATIONAL TRADE AND TRANSACTIONS owners to fund improvements that benefit their specific 1. Import duties - These are taxes imposed on goods SOURCES OF FUND area, like new roads or drainage systems. brought into the country from abroad. Import duties are Sources of Funds: 4. Education tax - A portion of property taxes goes directly meant to protect local industries from foreign competition Tax Revenues to funding local schools and educational services. by making imported goods more expensive. They also Non-Tax Revenues such as fees to be collected; and 5. Stock transfers - If you sell or transfer stock in a generate revenue for the government. Borrowings from both domestic and foreign sources company that owns property, a tax is applied to that 2. Export and premium duties - Export duties are taxes on - A tax is a compulsory contribution mandated by law and transaction. goods that leave the country. While not as common as import exacted by the government for a public purpose. Why Do People Pay Taxes on Their Property? duties, they can be imposed on certain goods to control - The major tax collecting agencies of the national government Paying property taxes helps fund local public services export levels, ensure availability in the domestic market, or are the Bureau of Internal Revenue and the Bureau of and infrastructure that directly or indirectly benefit property raise revenue. Premium duties refer to additional taxes on Customs. owners. These taxes are essential for maintaining community specific items that are considered high-value or scarce, often facilities, supporting education, and ensuring the functionality of to regulate the supply of such goods. TAX REVENUES include the following: local governments. Property taxes help ensure that those who 3. Foreign exchange - These are taxes or levies applied on 1. Individuals - These taxes apply to the income earned by benefit from local services contribute proportionally to their foreign currency exchanges. It’s a way for governments to people, including salaries, wages, bonuses, and other upkeep and development. manage their currency value, control the amount of foreign earnings. The government uses a tiered or flat system, TAXES ON GOODS AND SERVICES currency circulating in the economy, or raise funds from meaning the tax rate may increase with higher income 1. Excises on imports - This is a tax placed on goods international transactions. levels. brought into the country. It helps regulate and control the 6 SWPPS o Interests - Income derived from investments, loans, or Domestic borrowings are funds obtained from sources These taxes help governments control trade, protect deposits held by the government. within the country. domestic markets, and generate revenue from international o Commissions - Fees or percentages earned by the Foreign borrowings can be obtained through loans secured transactions. government for acting as an agent or intermediary in from foreign financial institutions or through the flotation of OTHER TAXES financial or service transactions government securities in the international market. 1. Documentary stamp taxes - These are taxes on o Trading/production - Income from trading or documents that are executed, signed, or acknowledged in production activities conducted by government Why does the government borrow? The government borrows from any of the following reasons: the Philippines. Examples include contracts, agreements, entities, including sales of goods and services. to finance national government deficits; deeds, and certificates. The tax is typically a fixed amount MISCELLANEOUS INCOME to obtain foreign exchange; based on the value of the transaction or document. o Sale of goods/merchandise confiscated - When the to secure financing at more favorable terms than the 2. Charges on forest products - These are fees or taxes government takes items (like illegal goods) and then opportunity cost of revenues; imposed on the harvesting, gathering, or sale of products sells them. to take advantage of benefits attached to the funds, e.g. from forests, like timber or other natural resources. The o Sale of scrap construction materials - Selling leftover technology; and, purpose is to regulate and control the use of forest resources or unused materials from a job or project. to balance the timing of resources with the project and ensure sustainable management. o Sale of waste materials - Selling leftover items that gestation and repayment of benefit 3. Wharfage fees and charges - These are fees charged for would usually be thrown away but can still be recycled What are constructive cash receipts? the use of ports or docks when loading or unloading goods. or reused. Constructive cash receipts are foreign loan proceeds in It’s a way to generate revenue from the transportation of What are the Government's current efforts to improve the form of goods and services for which no cash is goods by sea. tax collections? remitted to the national treasury. Such goods or services 4. Immigration tax - This tax is imposed on foreigners Digitalization: The Bureau of Internal Revenue (BIR) have been paid directly by the lender to the supplier. entering or exiting the country. It’s usually a small fee that is and Bureau of Customs (BOC) have moved many services paid at the immigration office or border control when arriving DIMENSIONS OF THE BUDGET online, making it easier for people to file taxes and make or departing. The budget possesses various dimensions. It can be payments. 5. Mining tax - A tax imposed on the extraction of minerals classified according to the following: By Sector, By Cost Structure, Enforcing Compliance: The government is working from the earth. The rate varies depending on the type of By Expense Class and By Object, By Region, By Type of harder to catch tax evaders and businesses involved in mineral and the country’s mining policies. This is to ensure Appropriation. fraudulent activities. that the government benefits from natural resources A. BY SECTOR Broadening the Tax Base: Efforts are underway to extracted from its land. - it refers to how the government's expenditure is allocated include more businesses and individuals in the tax system into various sectors based on the type of services or by making it easier to register and pay. NON-TAX REVENUES are income that comes from sources other functions. BORROWINGS than taxes. It’s money a business or government earns without Borrowings refer to funds obtained from repayable sources, The budget contains various type of expenditures. They are for: collecting taxes directly from people. These earnings can come such as loans secured by the government from financial 1. Social Services Expenditure - This is money spent on from things like selling goods, services, or assets. Even though institutions and other sources, both domestic and foreign, services that improve people's well-being, like health, these aren't tax payments, some of them may still be taxed in to finance various government projects and activities. education, and social welfare. some way. The government borrows to provide for the requirements of 2. Economic Services Expenditure - This refers to Non-tax revenues are the following: capital projects and to support priority programs and spending on projects and services that support the OPERATING AND SERVICE INCOME projects. Relying solely on domestic resources will limit economy, such as infrastructure, transportation, and o Government Business Operations - Revenue earned government's capability to provide the needed support. energy. from the operation of government-owned or controlled Domestic resources is insufficient to finance priority 3. Defense Expenditure - This is the money spent on businesses and enterprises, such as utilities, programs and projects. maintaining and improving the country's defense and transportation, and gaming operations. military capabilities. Domestic borrowings & Foreign borrowings 7 SWPPS 4. General Public Services - This includes government Judicial: The Supreme Court or lower courts. resources are managed and spent effectively, with each spending on administrative services, law enforcement, type serving a different function. public order, and other general public functions. What they do with the funding: These agencies are The budget is further classified into different types, 5. Debt Burden - This refers to the money spent on paying responsible for implementing government policies, providing namely: back the government’s debts, such as interest and public services, and maintaining order. They manage various 1. Supplemental Appropriations - additional funds principal payments on loans or bonds. sectors like health, education, security, and justice. allocated outside the regular budget, typically in B. BY COST STRUCTURE The LGUs (Local Government Units) response to unforeseen needs or emergencies. - We are analyzing how money is spent in different ways These are local entities like cities, municipalities, For example: to support both regular operations and specific projects. provinces, and barangays (neighborhoods). They have Disaster Relief 1. For General Administration & Support Services or their own set of responsibilities and manage services Public Health Emergencies Overhead Expenses - These are the basic, day-to-day closer to citizens. 2. Automatic Appropriations - Automatic operational costs needed to keep an organization or funding is released in the form of IRAs (Internal appropriations are funds that are automatically government running. They don’t directly contribute to the Revenue Allotments), special shares in national allocated by law without needing a separate approval core mission but are necessary for support and proceeds, credit thru the MDF (municipal development process every year. These appropriations are usually management. fund), and premium subsidies for local insurance. tied to specific laws or programs that require 2. As Support to Operations for the facilitative continuous funding. What they do with the funding: LGUs use the budget to For Example: functions and services, staff and technical support provide local services such as health care, education, Debt Servicing: Funds for paying interest on the national - This is money spent on resources or services that help infrastructure, and public safety. They are closer to the people the main operations run smoothly, like technical support, debt are typically automatic, meaning they are paid and manage community-based needs. training, and logistics. each year without the need for annual legislative The GOCCs (Government Owned and Controlled 3. For Operations of regular activities addressing approval. Corporations) agency mandate - These are the funds used for the These are businesses or corporations owned by the ongoing, regular activities that are essential to fulfilling the OBLIGATIONS BUDGET VS. CASH BUDGET government. They are typically set up to provide public government agency’s mission or mandate. These are Obligations budget is for expenditures incurred for goods or services that require business-like operations, activities that happen routinely. the year and is to be paid in said year. This can also be but with a public purpose. 4. For Projects such as homogenous group of for expenditures incurred for the year to be paid next funding is through subsidies, equity and net lending activities that result in the accomplishment of year. Aside from this, it is also allocated for interest identifiable output within a designated period, What they do with the funding: GOCCs use the funds to run payments. whether foreign or locally funded. - These are their operations and often provide essential services, such as In simple terms: It tracks what the government has specific, often time-bound, projects that are aimed at utilities (water, power, transportation) or other infrastructure. promised to pay, even if they haven’t paid yet. achieving certain goals or outputs. Cash budgets are for expenditures incurred for next D. BY REGIONAL ALLOCATION year. It can also be allocated for expenditures in C. BY MAJOR RECIPIENT OF GOVERNMENT Regional allocation refers to the way the government previous years, and is also allocated for interest The NGAs (National Government Agencies) - they include divides the national budget among the different regions payments. all agencies with the Executive, Legislative and Judicial of the country. This ensures that each region receives In simple terms: It tracks when the money is actually Branches of government funding based on its needs, priorities, and development paid out, or when the government spends the money. goals. The goal is to support balanced development For example: across all regions, so no area is left behind in terms of Executive: Ministries or departments like the infrastructure, services, and economic opportunities. PROCESS OF BUDGETING Department of Health, Department of Education, or the What is government budgetary process? E. BY TYPE OF APPROPRIATION Department of Finance. Government budgeting is the critical exercise of The type of appropriation classification in the budget allocating revenues and borrowed funds to attain the economic Legislative: The Senate or the House of refers to how funds are allocated for different purposes and social goals of the country. It also entails the management Representatives. or periods. This classification helps to ensure that of government expenditures in such a way that will create the 8 SWPPS most economic impact from the production and delivery of goods ✓ Budget Execution or Implementation capacity. DBM bureaus and prepare and then review the and services while supporting a healthy fiscal position. ✓ Budget Accountability agency proposals recommendations. 4. Executive Review - The recommendations are presented How does a budget become a law? While distinctly separate, these processes overlap in before an Executive Review Board composed of the DBM In accordance with the requirements of the Constitution, implementation during a budget year. Secretary and senior officials. Deliberations here entail the President submits his/her proposed annual budget in the form Budget preparation for the next budget year proceeds careful prioritization of programs and corresponding of Budget of Expenditure and Sources of Financing (BESF) while government agencies are executing the budget for the support, vis-à-vis the priority agenda of the national supported by details of proposed expenditures in the form of a current year. At the same time, the state is engaged in budget government. Implementation issues are also discussed and National Expenditure Program (NEP) and the President's Budget accountability as it reviews the past year's budget. resolved. Message which summarizes the budget policy thrusts and 5. Consolidation, Validation and Confirmation - DBM priorities for the year. BUDGET PREPARATION - this starts with budget call and ends then consolidates the recommended agency budgets and In Congress, the proposed budget goes first to the with the President’s submission of the proposed budget to the recommendations into a National Expenditure Program and House of Representatives, which assigns the task of initial budget President. a Budget of Expenditures and Sources of Financing (BESF). review to its Appropriation Committee. The Appropriation 1. Budget Call - at the beginning of the budget preparation As part of the consolidating process, the deliberations by Committee together with the other House Sub-Committee year, the Department of Budget and Management (DBM) the DBCC will determine the agency and sectoral allocation conduct hearings on the budgets of departments/agencies and issues the National Budget Call to all agencies (including of the approved total expenditure ceiling, in line with the scrutinize their respective programs/projects. state universities and colleges) and a separate Corporate macroeconomic and fiscal program. Heads of major Consequently, the amended budget proposal is Budget Call to all GOCCs and GFIs. The Budget Call contains departments are invited to this meeting. presented to the House body as the General Appropriations Bill. budget parameters (including macroeconomic and fiscal 6. Presentation to President and Cabinet - DBM and the While budget hearings are on-going in the House of targets and agency budget ceilings) as set beforehand by DBCC present the proposed budget to the President and Representatives, the Senate Finance Committee, through its the Development Budget Coordination Committee (DBCC); Cabinet for further refinements or reprioritization. After the different subcommittees also starts to conduct its own review and and policy guidelines and procedures in the preparation and President and Cabinet approve the proposed National scrutiny of the proposed budget and proposes amendments to submission of agency budget proposals. Expenditure Plan, the DBM prepares and finalizes the the House Budget Bill to the Senate body for approval. 2. Stakeholder Engagement - A new feature in budget budget documents to be submitted to Congress. To thresh out differences and arrive at a common preparations which seeks to increase citizen participation in 7. The President's Budget - The budget preparation phase version of the General Appropriations Bill, the House and the the budget process, departments and agencies are tasked ends with the submission of the proposed national budget- Senate creates a Bicameral Conference Committee that finalizes to partner with civil society organizations (CSOs) and other the "President's Budget" to Congress. The President's the General Appropriations Bill. citizen-stakeholders as they prepare their agency budget Budget consists of the following documents, which help proposals. This new process, which was piloted in the legislators analyze the contents of the proposed budget: Why is government budgeting important? preparation of the 2012 National Budget, is now being ✓ President's Budget Message (PBM) Government budgeting is important because it enables expanded towards institutionalization. ✓ Budget of Expenditures and Sources of Financing (BESF) the government to plan and manage its financial resources to Departments and GOCCS Mandated to Conduct CSO ✓ National Expenditure Program (NEP) support the implementation of various programs and projects Consultations starting in 2013: ✓ Details of Selected Programs and Projects Staffing that best promote the country’s development. Through the ✓ Department of Tourism budget, the government can prioritize and put into action its Summary ✓ Department of Transportation and Communication plans, programs, and policies within the constraints of its financial ✓ Department of Interior and Local Government How does a budget become a law? capability as dictated by economic conditions. ✓ Department of Justice Department of Labor and BUDGET LEGISLATION - alternatively called the “budget Government budgeting is the allocation of public funds Employment authorization phase,” this starts upon the House Speaker’s to attain the economic and social goals of the country. It also ✓ Department of Environment and Natural Resources receipt of the President’s Budget and ends with the President’s entails the management of government expenditures to create approval of the General Appropriations Act. the most impact from the production and delivery of goods and Light Rail Transit Authority 1. House Deliberations - The House of Representatives, in services. ✓ National Electrification Administration plenary, assigns the President’s Budget to the House ✓ National Irrigation Administration Appropriations Committee. The Committee and its Sub- What are the major processes involved in national 3. Technical Budget Hearings - These are conducted after Committees then schedule and conduct hearings on the government budgeting? departments and agencies submit their Agency Budget budgets of the departments and agencies and scrutinize Budgeting for the national government involves four (4) distinct Proposals to the DBM. Here, agencies defend their their respective programs and projects. It then crafts the phases: proposed budgets before a technical panel of DBM, based GAB. ✓ Budget Preparation on performance indicators on output targets and absorptive ✓ Budget Legislation or Authorization 9 SWPPS In plenary session, the GAB is sponsored, presented, and thereof; otherwise, it shall become a law as if he had 1. Changes in administration defended by the Appropriations Committee and Sub- signed it. (2) The President shall have the power to veto 2. Economic conditions Committee Chairmen. As in all other laws, the GAB is any particular item or items in an appropriation, revenue, 3. Legislative priorities approved on Second and Third Reading before transmission or tariff bill, but the veto shall not affect the item or items 4. Unforeseen events (e.g., natural disasters, to the Senate. (Note: In the First Reading, the President’s to which he does not object. pandemics) Budget is assigned to the Appropriations Committee.) 6. Enactment - When the GAA is not enacted before the How is the budget implemented? 2. Senate Deliberations - Budget deliberations in the fiscal year starts, the previous year’s GAA is automatically BUDGET EXECUTION - This is where the people’s money is Senate formally start after the House of Representatives reenacted. This means that agency budgets for programs, actually spent. As soon as the GAA is enacted, the government transmits the GAB. For expediency, however, the Senate activities and projects remain the same. Funding for can implement its priority programs and projects. Finance Committee and Sub-Committees usually start programs or projects that have already been terminated is 1. Release Guidelines - The budget execution phase begins hearings on the GAB even as House deliberations are realigned for other expenditures. with DBM’s issuance of guidelines on the release and ongoing. The Committee submits its proposed amendments Section 27 (7), Article VI of the 1987 Constitution: If, by utilization of funds. to the GAB to plenary only after it has been formally the end of any fiscal year, the Congress shall have failed 2. Budget Execution Documents - All transmitted by the House. to pass the general appropriations bill for the ensuing year, departments/agencies/OUs shall now start preparing their 3. Bicameral Deliberations - Once both Houses of the general appropriations law for the preceding fiscal year Budget Execution Documents containing plans and targets, Congress have finished their deliberations, they will each shall be deemed re-enacted and shall remain in full force based on the GAA. The spending schedules/targets of the constitute a panel to the Bicameral Conference Committee. and effect until the general appropriations bill is passed by individual departments/agencies/OUs shall be consolidated This committee will then discuss and harmonize the the Congress. by DBM and shall serve as guide in the formulation of the conflicting provisions of the House and Senate Versions of DBCC quarterly disbursements program, in sync with the the GAB. A Harmonized Version of the GAB is thus NATIONAL BUDGET PREPARATION growth targets set. produced. 1. June-September: Departments and agencies 3. Allotment and Cash Release Programming - To ensure 4. Ratification and Enrollment - The Harmonized or submit budget proposals to the Department of that releases fit the approved Fiscal Program, the DBM “Bicam” Version is then submitted to both Houses, which Budget and Management (DBM). prepares an ARP to set a limit for allotments issued to an will then vote to ratify the final GAB for submission to the 2. October-November: DBM consolidates and agency and on the aggregate. The ARP of each agency President. reviews budget proposals. corresponds to the total amount of the agency specific 5. The Veto Message - The President and DBM then review 3. December: President submits the National budget under the GAA, as well as Automatic Appropriations. the GAB and prepare a Veto Message, where budget items Expenditure Program (NEP) to Congress. A CRP is also formulated alongside that to set a guide for subjected to direct veto or conditional implementation are CONGRESSIONAL BUDGET DELIBERATIONS disbursement levels for the year and for every month and identified, and where general observations are made. 1. January-February: House of Representatives quarter. Under the Constitution, the GAB is the only legislative reviews and debates the NEP. 4. Allotment Release Allotments - Which authorize an measure where the President can impose a line-veto (in all 2. March-April: Senate reviews and debates the agency to enter into an obligation, are either released by other cases, a law is either approved or vetoed in full). NEP. DBM to all agencies comprehensively through the ABM and Section 27, Article VI of the 1987 Constitution: (1) Every 3. April-May: Bicameral Conference Committee individually via SARO. bill passed by the Congress shall, before it becomes a law, reconciles differences. o ABM - This document disaggregates all programmed be presented to the President. If he approves the same he BUDGET APPROVAL appropriations for each agency into two main shall sign it; otherwise, he shall veto it and return the same 1. May-June: Congress approves the General expenditure categories: “not needing clearance” and with his objections to the House where it originated, which Appropriations Bill (GAB). “needing clearance.” The ABM is the comprehensive shall enter the objections at large in its Journal and 2. July: President signs the GAB into law. allotment release document for appropriations proceed to reconsider it. If, after such reconsideration, BUDGET IMPLEMENTATION categorized under the “not needing clearance” portion two-thirds of all the Members of such House shall agree to 1. January-December: Government agencies of the ABM or those which have already been itemized pass the bill, it shall be sent, together with the objections, implement budgeted programs and projects. and fleshed out in the GAA. to the other House by which it shall likewise be Budget Monitoring and Evaluation o SARO - Programmed appropriations categorized under reconsidered, and if approved by two-thirds of all the 1. Quarterly: DBM monitors budget execution. the “needing clearance” portion of the ABM are those Members of that House, it shall become a law. In all such 2. Year-end: Agencies submit accomplishment which require the approval of appropriate authority. For cases, the votes of each House shall be determined by reports. such items, an agency needs to submit a Special yeas or nays, and the names of the Members voting for or 3. Next year's budget preparation: Cycle Budget Request to the DBM with supporting against shall be entered in its Journal. The President shall repeats. documents. Once approved, a SARO is issued communicate his veto of any bill to the House where it Please note that actual timelines may vary depending on various 5. Incurring Obligations - Upon receipt of allotment, originated within thirty days after the date of receipt factors, such as: agencies incur obligations/enter into commitments, for and 10 SWPPS on behalf of the government, for payment of delivered goods performance measures are set alongside the preparation of reviewed and updated to reflect the impact of recent and services. Obligations are liabilities legally incurred, which the National Budget; and these are indicated in the OPIF developments in the projected performance of the national the government will pay for. There are various ways that an Book of Outputs (See previous section on Public economy and on the set fiscal program for the year. The relevant agency “obligates:” for example, when it hires staff (an Expenditure Management). Prior to the execution of the indicators affecting the budget aggregates include the following: obligation to pay salaries), receives billings for the use of enacted National Budget, these performance targets are the Gross National Product (GNP), inflation rate, interest rate, utilities, or enters into a contract with an entity for the supply firmed up during the preparation of BEDs. foreign exchange rate, oil prices, and the level of imports. Thus, of goods or services. 2. Budget Accountability Reports (BARs) - Submitted by a sensitivity measure on the impact of these parameters on the 6. Disbursement Authorities - To authorize an agency to agencie