Mary Grace P.

Lacambra
Draft Write-up for Module 1

Issues and Challenges of Public Fiscal Administration in relation to Sustainable

Development

A. Introduction

Public Fiscal Administration deals with the income (“incoming”) and expenses
(“outgoing”) of the government for the purpose of promoting public welfare and development in
our country. This paper will tackle about the brief history or evolution of public fiscal
administration in the country as well as the country’s notable fiscal condition in the previous
administrations. Likewise, this paper will also discuss about the overall cycle, starting from
budget preparation until budget accountability, to include government agencies responsible or
leading each step.

Further, the framework and components of public fiscal administration, including the
fiscal policies will then be related on the meaning of development and how to achieve it using
said concepts. Particularly, this paper will discuss how does the fiscal policies or public fiscal
administration can contribute to improving the quality of life of the Filipino people and achieve
the 17 Sustainable Development Goals (SDG) of our country.

B. The Public Fiscal Administration System

 The Public Fiscal Administration in the Philippines can be traced back since pre-
colonial period mainly through barter system or exchange of goods with nearby cities, provinces
or even nations.
 The concept of tax or effort in tax started during the Spanish colonization in our
country. From simplified tax system during this era to a more complicated tax system in the
current times.
 The fiscal position of our country depends on internal and external sources, or
the things we have and do not have control. This includes the government’s fiscal policies, tax
efforts, Asian financial crisis, depreciation of peso, focus of expenditures, among others.
 Notable administrations were the Fidel V. Ramos and Benigno Aquino III
administrations. It was only in their administrations that there were budget surplus and that we
were able to provide loans for other countries, respectively. On the other hand, it was during the
Gloria Macapagal Arroyo administration that we had the poorest fiscal position wherein it had
the highest national debt-to-GDP ratio among all administrations.
 The budget cycle starts from budget preparation conducted by the local and
national government agencies/offices, followed by budget legislation presided by the Congress,
then followed by budget execution by the different national and local government
agencies/offices, then lastly, budget accountability led by the Commission on Audit.

C. Public Fiscal Administration and Development

 Development can be measured by combining indicators such as life expectancy,

education, literary, and income, among others.
 To improve the quality of life of every Filipino, or even every person on this
planet, means having an integrated development which includes all aspects of life.
Particularly, this includes social, economic, physical, political and environmental
developments, among others. Hence, the so-called 17 sustainable development goals
(SDGs).
 The 17 SDGs include the following:
- no poverty
- zero hunger
- good health and well-being
- quality education
- gender equality
- clean water and sanitation
- affordable and clean energy
- decent work and economic growth
- industry, innovation and infrastructure
- reduced inequalities
- sustainable cities and communities
- responsible consumption and production
- climate action
- life below water
- life on land
- peace, justice and strong institutions
- partnership for the goals
 The proper and effective implementation of the fiscal policies could facilitate or
contribute to the development of our country. This is possible through the right tax effort
or revenue generation, right expenditure programs or focus, as well as managed debts
from local and foreign sources of our government.
 In other words, development also depends on the public fiscal administration of
the government which includes the effective control and/or harmonious relationship
between the following components: tax collection, expenditures, national budget,
national debt, and deficit/surplus.