OPEN UNIVERSITY SYSTEMS

Lingayen, Pangasinan

DM 213 – FISCAL ADMINISTRATION

2ND Semester 2022-2023

Assignment No. 4
Submitted by:
LEA N. RAGUINDIN
MDM Student

Submitted to:

MR. MENARD P. NAVA

Professor, DM 213
1. Discuss the problem and issues relative to the PPBS and the stages or processes involved
in the budget cycle.

Planning, Programming, and Budgeting System (PPBS) is a concept that stresses the
importance of establishing a strong linkage between planning and budgeting. It could be
such a great help to the government because budget is anchored on the degree by which
the accomplishment of economic plans and the attainment of target. It emanates from the
policy of the government to formulate and implement a national budget that is an
instrument of national development, reflective of national objectives, strategies and plans.
However, there are some issues and problems that arises. First, it is the ability of the
government to provide data shift, computerization data which are beyond technical and
financial capabilities of government agencies. This issue result to the lack of manpower,
trained personnel, inadequate state of the art or higher technology equipment. Issues that
somehow, I can relate to the most problems of Local Government Units to provide best
services that the public deserve. Second, the decision making of the leaders and major
involved in improving the system. Approach of analytical method can not lie on the value
of the method itself but on the personal values of the people responsible in the
application. My understanding about this problem is that the political will of the person
involve to alleviate the level of service and performance of the government. There are so
many issues that relate on the implementation of the PPBS but I think the two issues that I
mention are the main problems that should be resolve. If we acknowledge and address
these problems properly, those other issues that relate on this implementation can be
manageable.

2. Enumerate and discuss the current issues and problems in the budgeting.

1. Funding Source
Programs and Projects need budget to be implemented, budget will be allocated from
funding sources, funding sources can be from the income generated by the income
 generating sources and agencies of our government. Income that are collected and
generated are based through revenue laws and policies passed by our legislators. In
this case, tax measures being enacted should be implemented throughout the nation
so that it will increase our revenue. But the issue here, there are interesting bills for
income generation that somehow can help our government but are still pending for
reading and lack of push to become law.
2. Budget Deficit
Incurred budgets for calamities such as typhoon, earthquake, volcanic eruptions and
others which are unexpected events and needs priority for rehabilitations. I know
there is portion of the budget for Disaster Risk Reduction Management but our
government must anticipate this unexpected event. Increasing the certain percentage
for DRRM must be the answer so that we will not be budget deficit.
3. Poor and inefficient tax collection
Persistent corruption sometimes results to inefficiency of our main revenue-raising
agencies. If not for the corruption the government should investigate on this problem
to know the reason why tax collection is poor. I know it is not the taxpayer who is the
problem but it is the tax people who are in charge and responsible for collection.
4. Subsidy to the NAPOCOR
The government may consider this as current problem due to surge of oil price. This
may remain an uncontrollable issue especially that there are some warnings from
other nation who are top oil supplier due to Ukraine-Russia and Palestine-Israel war.
Hence, Nuclear Power Plant was also in the process of legislation to open
opportunities in our country.
5. Assumption of foreign loans of government corporation
Loans are in good way of help if we manage it correctly, but why it became one of the
current problems. Maybe because it was managed incorrectly. Instead of it became an
asset it results to became liability. This problem needs to be addressed and be resolve.
6. Repayment of foreign debts
 This is also a result of mismanagement instead of keeping the return of investment
into an asset it became a liability. Doing such project that you will not also maintain
will become wasted. The government must always consider to take time and plan
correctly on crafting plans and projects so that it will be useful and not a waste of
money.
7. Massive tax evasion
The problem will always go back on the poor and inefficient tax collection, tax evaders
are relaxed to do illegal because of the lapses of the tax people who implement the tax
campaign. I also want to address the issue of red tape, if digitization is the system that
will be resolved these issues, then it should be enact immediately. They evade because
they let them do it. Personal interest must be cancelled and public accountability must
be always observed.