Chapter 2 Introduction

This Chapter on Public Fiscal Administration delves into the rudiments of Public Sector

Interventions. Specifically, this topic is about “The Nature and Magnitude of Public

Sector Interventions: Defining Responsibilities and Measuring the Size of the Public

Sector.” Discussed are the nature and magnitude of these interventions. While it may

vary from state to state, from administration to administration, and from the kind of

leadership to another, still the basic principles adhered to by the economists are

practically the same.

More specifically, defined in this chapters are the responsibilities of the government in

so far as interventions are concerned. What form of revenue measures are designed is

also given importance in this chapter. Even the market and how market plays its

significant role is being highlighted.

Included as resource materials in this chapter is a power point presentation. This

material is composed of more than 30 slides, both textual and graphical. Graphically

shown are visuals speaking more than a thousand words. Noteworthy are pictures

depicting the roles of the state should play and wherewithal required to finance these

programs and projects. Depicted too, as vividly as it can be are the faces of nameless

people whom the state should provide with public goods and services.

Labelled as 03-public sector.docx briefly shows and explains public sector.

Size of public sector (04_size of public sector.docx) gives examples on how to

determine the size of public sector. Although examples as given in the explanations are
other countries (notably, Canada, United Kingdom and USA), still the concepts are very

much applicable in the Philippine setting.

The materials included in here are by no means complete and conclusive in

themselves. It is advised that you supplement your reading by numerous materials

uploaded in various websites.

Recapitulation of the chapter is expressed in the closing statement (07_closing

statement.docx). Before poking your head into that statement, please take quiz 1 and

quiz 2 included in this Chapter.