Public Fiscal Administration PDF

PUBLIC FISCAL ADMINISTRATION Mafgen Jamisola-Capangpangan, JD, LLM (ongoing) FISCAL ADMINISTRATION Is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions, non Profit Organizations, and other public service entities Fiscal Administr...

PUBLIC FISCAL ADMINISTRATION Mafgen Jamisola-Capangpangan, JD, LLM (ongoing) FISCAL ADMINISTRATION Is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions, non Profit Organizations, and other public service entities Fiscal Administration Structure Top Management Level Middle Management Rank and File PHILIPPINE BUDGETARY PROCESS Sec. 22, Article VII, of the 1987 constitution sets the tone for the budgetary process. Under this article, the president submits to congress within 30 days from the opening of every regular session, a financial plan of expenditures and sources of financing, including receipts from existing and proposed revenue measures as basis for a general appropriations bill.  FIVE MAJOR PHASES IN THE BUDGETARY PROCESS 1. Budget 2. Budget 3. Budget Preparation Authorization Review 4. Budget 5. Budget Execution Accountability Functions of Local Officials in Fiscal Administration Local Chief Executive - Executive Direction and Control Functions of Local Officials in Fiscal Administration Composition of Local Finance Cluster Local Sanggunian - Assessor -Taxing Authority - Accountant - Enactment of Policies, Implementing Rules -Budget Officer and Regulations - Treasurer - Planning and Development Officer  Historical background March 17, 1897 – The Department of Finance was established, and the revolutionary government was founded in Naic, Cavite 1901 – The Department of Finance and Justice was formally organized by virtue of an act passed by the Civil Service Commission which was headed by William Howard Taft 1916 – through the Reorganization Act No. 2666 of the Philippine legislature, the Department of Finance and justice was split into two independent departments 1936 – DOF functions relative to the formulation and preparation of the government’s budget were transferred to the newly created budget commission  Fiscal policy of the Philippines Fiscal policy refers to the measures employed by governments to stabilize the economy, specifically by manipulating the levels and allocations of taxes and government expenditures. Fiscal Measures are frequently used in tandem with monetary policy to achieve certain goals.  Seal of the Philippine House of Representatives Principal agencies tasked with fiscal functions 1. Congress (lower House) responsible for revenue and expenditure policies. Aside from having its concurrence on every bill in order to be passed for the President’s signature to become a law, the House of Representatives has the power to impeach certain officials, and all money bills must originate from the lower house  House of representatives officials 1. Speaker is the fourth highest official in the Philippines government. He: Presides over the sessions; Decides on all questions of order, subject to appeal by any Member; Signs all acts, resolutions, memorials, writs, warrants, and subpoenas issued by or upon order of the House; Appoints, suspends, dismisses, or disciplines House personnel; and Exercises administrative functions.  House of Representatives Officials 2. Deputy Speakers (Eric singson, Mercedes alvarez, fredenil castro, raneo abu, miro quimbo, pia cayetano, Gwendolyn Garcia, mylene Garcia-albano, and Sharon garin) Assumes the duties and powers of the Speaker when he is absent or incapacitated. 3. Majority leader (Rodolfo fariÑas) The Majority Leader is elected in a party caucus of the majority ruling party. His primary function, aside from being the spokesman of the majority party, is to direct the deliberations on the floor. 4. Minority Leader (danilo e. suarez) The Minority Leader is the acknowledged spokesman of the minority party in the House. But it does not necessarily follow that he is also the leader of the party because the minority party in the House may be composed of one or more political groupings.  House of Representatives Officials 5. Secretary General Carries out and enforces orders and decisions of the House; Keeps the Journal of each session; Notes all questions of order together with the decisions thereon; Completes the printing and distribution of the Records of the House; Submits to the Speaker all contracts and agreements for his approval; Acts as the custodian of the property and records of the House and all other government property in its premises; Subject to the supervision and control of the Speaker, the Secretary General is the immediate chief of the personnel of the House and is responsible for the faithful and proper performance of their official duties. 6. Sergeant-at-Arms Maintains order in the House of Representatives Building Complex; Enforces House Rules; Protects the lives of Officers and Members of the House, its personnel and guests as well as properties found therein. Department of Finance Revenue generation and collection Fund custody Disbursements Keeping of accounts  2.1 Bureau of Internal Revenue Mandate Comprehend the assessment and collection of all national internal revenue taxes, fees and charges and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the court of tax appeals and the ordinary courts Management committee Commissioner of internal revenue Deputy commissioner Deputy commissioner (legal group) Deputy commissioner (information systems group) Deputy commissioner (resource management group) http://customs.gov.ph/wp-content/uploads/2015/10/boc_logo.png Functions: The prevention and suppression of smuggling and other frauds upon the customs The supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce The enforcement of the tariff and customs laws and all other laws, rules, and regulations relating to the tariff and customs administration The supervision and control over the handling of foreign mails arriving in the Philippines, for the purpose of the collection of the lawful duty on the dutiable articles thus imported and the prevention of smuggling through the medium of such mail;  2.3 Bureau of the Treasury Rosalia v. de leon – treasurer of the Philippines Mandate (Under executive order no. 449) assist in the formulation of policies in borrowing, investment and capital market development Formulate adequate operation guidelines for fiscal and financial policies Assist in the preparation of by the government agencies concerned of an annual program for revenue and expenditure targets, borrowing levels and cash balances of the national government Act as principal custodian of financial assets of the national government, its agencies and instrumentalities  Review of estimates and fiscal policy studies in close consultation with the national economic development authority Accountable for carrying out the president’s responsibility of preparing the budget Formulate and implement the national budget and ensure the efficient and sound utilization of government resources to achieve the country’s development objectives  4. COMMISSION ON AUDIT Conducts fund and performance audit to see it that expenditures are in accordance with the appropriation law approved. Promulgate accounting and auditing rules and regulations including those for the prevention and disallowance of irregular, unnecessary, excessive, extravagant or unconscionable expenditures, or uses of government funds and properties Submit annual reports to the President and the Congress on the financial condition and operation of the government 5. National Economic and Development Authority Provides high-level advice to policymakers in congress and executive branch Review, evaluation, and monitoring of infrastructure projects identified under the comprehensive and integrated infrastructure program (CIIP) consistent with the government’s thrust of increasing investment spending for the growing demand on quality infrastructure facilities Undertaking of short-term policy reviews to provide critical analyses of development issues and policy alternatives to decision- makers 6. BANGKO SENTRAL NG PILIPINAS Responsibilities the BSP provides policy directions in the areas of money, banking, and credit. It supervises the operations of banks and exercises regulatory powers over non-bank financial institutions with quasi-banking functions. The BSP formulates and implements monetary policy aimed at influencing money supply consistent with its primary objective to maintain price stability The BSP has the exclusive power to issue the national currency. All notes and coins issued by the BSP are fully guaranteed by the Government and are considered legal tender for all private and public debts. BSP’S ORGANIZATIONAL STRUCTURE  7. External Forces A. International Monetary Fund Ensure the stability of the international monetary system Provide loans to member countries experiencing actual or potential balance of payments problems Seeks to build on synergies between the technical assistance and training to maximize their effectiveness  Strengthens public financial management, improves fiscal transparency and financial accountability, and supports greater citizen demand for government accountability The most recent project approved by the World Bank Board of Executive Directors is the Metro Manila bus rapid transit project. The bank is working with the new government in the preparation of projects in the areas of climate change (Metro Manila Flood Management), governance (E-Government Transformation and Customs and Trade Modernization), agriculture (Inclusive Partnership for Agricultural Competitiveness), and policy-based lending (Fiscal Transparency DPL). C. Asian Development Bank ADB aims to focus support in the areas of sustainable and climate resilient infrastructure, good governance and finance, employment and education, and regional integration. Future ADB assistance to the Philippines will be closely aligned with the Long-Term Vision of the Philippines towards 2040 (Ambisyon Natin 2040) as well as the Philippine Development Plan for 2017–2022 by the National Economic and Development Authority. ADB is one of the country’s largest sources of official development assistance, with average annual lending of $745 million in the past 10 years. 8.Development Budget Coordination Committee the DBCC was created on May 14, 1970, through Executive Order No. 232 creating the presidential development budget committee (Pdbc). Later, on March 1, 1972, the integrated reorganization plan renamed the PDBC to its current appellation and attached it to the NEDA. In the same year on September 22, a presidential decree (PD) no. 136 was issued to reorganize the NEDA including the DBCC to its composition today.  Functions of the DBCC Recommend for the presidential approval the level of the annual government expenditure program and the ceiling of government spending for economic and social development, national defense, general government, and debt service Recommend to the president the proper allocation of expenditures for each development activity between current operating expenditures and capital outlay Recommend to the president the amount set to be allocated for capital outlay under each development activity for various capital or infrastructure projects  Provide consultative services and technical assistance to the local governments and the general public on local taxation, real property assessment, and other related matters Administer the DOF components of foreign-assisted projects involving local governments and the municipal development fund established under PD 1914 Administer the internal affairs of the Bureau and exercise direct supervision over its officials and personnel. Review/approve pursuant to existing Department Orders work outputs on the offices, services, and divisions comprising the Bureau. Represent the Department in Inter-Agency Policy and Technical Committees concerning local governments or local finance matters.  Created on December 6, 2000, by virtue of executive order no. 323 responsible for formulating policies and general guidelines on privatization issues, identifying disposable assets, monitoring the progress of privatization activities, and approving the sale or divestment of assets with respect to price and buyer https://www.insurance.gov.ph/wp-content/uploads/2017/08/WebHeader4.png Mandate: To regulate and supervise the insurance, pre-need, and HMO industries in accordance with the provisions of the insurance code, as amended, pre-need code of the Philippines, executive order no. 192 (s. 2015) Licensing of insurance, reinsurance companies, its intermediaries, mutual benefit associations, trusts for charitable uses, pre-need companies, pre-need intermediaries, and HMO companies Review of premium rates imposed by life and non-life companies, mutual benefit associations; statistical reports of adjusters to determine compliance with established standards http://www.ntrc.gov.ph/images/photos/masthead.jpg conduct continuing research in taxation “to restructure the tax system and raise the level of tax consciousness among our people to achieve a faster rate of economic growth and to bring about a more equitable distribution of wealth an income Undertake a comprehensive study of the need for additional revenue for accelerated national development and the sources from which this might most equitably derived To re-examine the existing tax system and tax policy structure To pass upon all measures and revenue proposals To recommend such reforms and revisions as may be necessary to improve revenue collection and to formulate sound tax policy and a more efficient tax structure  Any owner or person having legal interest in the property who is not satisfied with the action of the provincial, city or municipal assessor in the assessment of his property may, within sixty (60) days from the date of receipt of the written notice of assessment, appeal to the Board of Assessment Appeals of the province or city by filing a petition under oath in the form prescribed for the purpose, together with copies of the tax declarations and such affidavits or documents submitted in support of the appeal http://www.pdic.gov.ph/template/images/pdic-banner.png PDIC is a government instrumentality created in 1963 by republic act 3591, as amended to insure the deposits of all banks. PDIC exists to protect depositors by providing deposit insurance coverage for the depositing public and help promote financial stability PDIC is tasked to strengthen the mandatory deposit insurance coverage system to generate, preserve, maintain faith and confidence in the country’s banking system; and protect it from illegal schemes and machinations http://www.philexim.gov.ph/images/agencylogo.png Corporate objectives and functions Pursuant to presidential decree no. 1080 as amended by Republic Act No. 8494, PhilExim’s expanded functions are the following: To promote and facilitate the entry of foreign loans into the country for development purposes having special regard to the needs of export-oriented industries, industries registered with the Board of Investments, public utilities, and industries the promotion of which is encouraged by government policy; To guarantee loans granted by Philippine banking and financial institutions to qualified exporters, producers of export products, and contractors with approved service contracts abroad; To facilitate and assist in the implementation of approved service contracts abroad entered into by Philippine entities, enterprises, or corporations with foreign exchange earning potentials, by providing counter-guarantees to Philippine banks and financial institutions issuing stand-by Letters of Credit or of Letters of Guarantee for the performance of said service contracts; To meet requests from domestic entities, enterprises, and corporations to assist them in the coordination of their development and expansion plans with a view to achieving better utilization of their resources; http://www.philexim.gov.ph/images/agencylogo.png To provide insurance cover, credit and appropriate services to facilitate the export of Philippine goods or services by any entity, enterprise or corporation organized or licensed to engage in business in the Philippines; To provide direct credits and loans to exporters of Philippine goods and services; To provide technical assistance in the preparation, financing, execution of development or expansion programs, including the formulation of specific project proposals. To undertake such actions that are consistent with the primary purposes of the corporation. Mandate: Created by Commonwealth Act No. 186 and Republic Act No. 8291 (GSIS Act of 1997), GSIS is a social insurance institution that provides a defined benefit scheme under the law. It insures its members against the occurrence of certain contingencies in exchange for their monthly premium contributions GSIS members are entitled to an array of social security benefits, such as life insurance benefits, separation or retirement benefits, and disability benefits GSIS is also the administrator of the general insurance fund by virtue of R.A. 656 (Property insurance law). It provides insurance coverage to government assets and properties that have government-insurable interests.  Formerly known as Public Estates authority The Authority is hereby created for the following purposes: (a) To reclaim land, including foreshore and submerged areas, by dredging, filling, or other means, or to acquire reclaimed land; (b) To develop, improve, and acquire. administer, deal in, subdivide, dispose of, lease, and sell any and all kinds of lands, buildings, estates, and other forms of real property, owned, managed, controlled and/or operated by the government. (c) To provide for, operate, or administer such services as may be necessary for the efficient, economical, and beneficial utilization of the above properties. Powers, functions, and responsibilities Formulate, adopt, and implement integrated and comprehensive plans and programs on cooperative development consistent with the national policy on cooperatives and the overall socio-economic development plans of the Government; Register all cooperatives and their federations and unions, including their division, merger, consolidation, dissolution, or liquidation. It shall also register the transfer of all or substantially all of its assets and liabilities and such other matters as may be required by the Authority;  Require all cooperatives, their federations and unions to submit their annual financial statements, duly audited by certified public accountants, and general information sheets; Order the cancellation after due notice and hearing of the cooperative's certificate of registration for non-compliance with administrative requirements and in cases of voluntary dissolution. Thank You.....