A Strong Partner for Sustainable Development

Module
in
PA 107

Public Fiscal
Administration

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

College of Business and Management
Bachelor of Public Administration

Module No. 01_

Public Fiscal
Administration

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Cynthia A. Tucay, MPA
Instructor 1

Table of Contents

Page No.

Chapter 1
Title of the Chapter: 1
Instruction to the User 4
Introduction 5

Lesson 1
A. Learning Outcomes 6
B. Time Allotment 6
C. Pre-Test 7
D. Discussion 8

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 E. Activities/Exercises 15
F. Evaluation/Post-test 18
References 19
Student’s Information 20
Name:
Program, Year and Section:
Contact No.:
E-mail address/Facebook Account/
Messenger Account

Back Cover (Vision, Mission, Core Values) 21

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

INSTRUCTION TO THE USER

This module would provide you an educational experience while

independently accomplishing the task at your own pace or time. It aims as well
to ensure that learning is unhampered by health and other challenges. It covers
the topic about ____________________________________.

Reminders in using this module:

1. Keep this material neat and intact.

2. Answer the pretest first to measure what you know and what to be
learned about the topic discussed in this module.
3. Accomplish the activities and exercises as aids and reinforcement for
better understanding of the lessons.
4. Answer the post-test to evaluate your learning.
5. Do not take pictures in any parts of this module nor post it to social
media platforms.
6. Value this module for your own learning by heartily and honestly
answering and doing the exercises and activities. Time and effort were
spent in the preparation in order that learning will still continue
amidst this Covid-19 pandemic.
7. Observe health protocols: wear mask, sanitize and maintain physical
distancing.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Welcome to Western Philippines University!
Shape your dreams with quality learning experience.

STAY SAFE AND HEALTHY!

Introduction

This learning material or module will be your guide and reference in your
Public Fiscal Administration subject. It will also enhance your creativity and
skills in the said subject/ field while gaining worthwhile experiences as you
accomplish the activities and exercises . This contains all topics about Policy,
rules, processes, concepts and other insights about the subject.
The module contains unit tests after each unit or lesson. Also, pretest and
post test and other exercises are required to be answered with all honesty.
Students are also expected to handle this module with utmost care.
Students are encouraged to refer to other reading materials and books
should there be clarifications and verifications needed in some areas.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Overview

Chapter 2 module includes two lessons: Lesson 1 – It covers the analytical

framework of public fiscal administration, difference of fiscal policy and
monetary policy. Lesson 2- covers the functions of fiscal policy and roles of fiscal
policies in developing economies.

. The module provides the fiscal policy functions, politics and fiscal
administration process, models, analytical framework and the role of fiscal
policies in developing countries.
A. Learning Outcomes Lesson 1 - At the end of the module, you can

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

1. Differentiate the concepts embodied in public fiscal administration.

2. Analyze the difference of stages in policy cycle from the phases of applied
problem solving.

3. Discuss the public fiscal activities of the Philippine Government.

B. Time Allotment: 6 hours

C. Pre – Test

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

Test I. True or False.
Directions: Write the word True if the statement is correct and False if it is
wrong. Write your answer on the space before each number.

_________ 1. Fiscal administration and politics are inseparable aspects that

has a great influence on the fiscal policy of a country.
_________ 2. Public means the populace that the government serves.
_________ 3. Fiscal policies are the instruments used by the government to
achieve its objectives and goals.
_________ 4. There is no need to consult people when it comes to formulating
fiscal administration rules.
_________ 5. External environment influences domestic fiscal policy.

________ 6. The fiscal policies of a developing and developed countries are

the same.
________ 7. All fiscal policies from formulation to evaluation has undergone
a process of politicalization.

_________ 8. GAA stands for general appropriations act.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

_________9. National Economics and Development Authority is a central
planning body and major player in fiscal policy formulation,
review and assessment.

_________10. Business Finance is a subject in the field of economics that deals

with the expenditures of the government and their impact on the
economy.

D. Discussion. This section contains the overview, nature and framework of

public fiscal administration. This give the full view of the public fiscal
administration in the Philippines.
What is public fiscal administration?
It refers to the formulation, implementation of and evaluation of policies
and decisions on taxation, revenue distribution, resource allocation, budgeting
and public expenditure, borrowing and debt management, accounting and
auditing ( Briones, 1996).

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

What does Public mean?

The term public can also mean the people whom the government serves.
The people are sometimes called beneficiaries, or more specifically the voters, the
taxpayers, the youth, the farmers, the urban poor and so on.

What does fiscal in public administration mean?

Fiscal in the phrase public fiscal administration refers to fiscal policies.

● Fiscal policies are the instruments used by the government to achieve its
objectives and goals.

● Fiscal policies provide the direction to government activities and

depending on the kind of policy adopted, serve to encourage and promote
private activities.

● Fiscal policies are closely linked with other policy, trade, investment
relationship with the private sector ( Boncodin, 1992)

Administration in the phrase public fiscal administration refers to the

formulation, implementation and evaluation of the government’s fiscal policies.

The administration aspect involves the following:

● Fiscal process of what the government wants to achieve

● Collecting taxes and rising revenues

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 ● Borrowing

● Allocating the revenues to meet the needs and demands of the people

● Spending and examining whether every cent of public funds has been
spent properly based on the generally accepted accounting and auditing
rules.
● Examination of their effect on the supply and demand for public or social
goods, on income distribution, on price and employment levels and on the
overall achievement of our own concept of development.

Politics and Fiscal Administration

● The administration of fiscal policies usually takes place within the political
system.
● It is a part of a larger system and is influenced by forces of society

Government Agencies involved in fiscal policy formulation,

implementation and evaluation

o Department of Finance Attached Agencies

● Bureau of Internal Revenue (BIR)– implements taxation laws

● Bureau of Customs (BOC)– implements tariff laws

● Bureau of treasury (BOT)- custodian of government funds

● Deparment of Budget and Management (DBM)– leads the formulation of

expenditure policy as well as borrowing.
● National Economics and Development Authority (NEDA)– central
planning body and major player in fiscal policy formulation, review and
assessment.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 ● NEDA - prescribes programs, projects and activities of government and
how these are prioritized and financed.

● Central Bank (CB) - ensure that monetary policies and targets are in
consonance with fiscal policy decisions.

Public Finance is a subject in the field of economics that deals with the
expenditures of the government and their impact on the economy.

Public Fiscal administration deals with the government revenues and

expenditures and their impact on the economy.

It also encompass the practical aspects of fiscal governance such as revenue

collection, preparation of budgets, budget allocation and spending, management
of debt and auditing of accounts among others.

Fiscal Policy and Monetary Policy

Fiscal policies refer to the combination of policies on taxation, expenditures,

borrowing, budgeting, accounting and auditing adopted by the government to
achieve its objectives.

- It is also referred to as budgetary policies.

Monetary policy is concerned with the control of the aggregate supply of money
( cash pockets and balances in bank accounts) in the economy and is monitored
and shaped primarily by the central bank.

Components of the Public Sector

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

1.) Local Government Units (LGU)
2.) Government and Controlled Corporation (GOCC)
3.) Government Financing Institution (GIF)

General Appropriations Act (GAA) -An appropriation bill, also known as

supply bill or spending bill, is a proposed law that authorizes the expenditure of
government funds. It is a bill that sets money aside for specific spending. In most
democracies, approval of the legislature is necessary for the government to spend
money. (en.wikipedia.com)

GAA is also called the national government budget.

Public fiscal Administration in Developing Countries

Countries are classified into two broad categories, the developed and developing
category.

Developed countries have goals and objectives. It is also called an

industrialized country—has a mature and sophisticated economy, usually
measured by gross domestic product (GDP) and/or average income per
resident. Developed countries have advanced technological infrastructure and
have diverse industrial and service sectors. (www.bdc.ca)

Developed countries are countries that already have high technology and an
evenly distributed economic level. While developing countries are countries
where the level of welfare of the population is still in the middle of developing
level.

Characteristics of Developed Countries

(http://www.rprogreso.com/characteristics-of-developed-and-developing-countries.htm )

1. Has a high income per capita. Developed countries have high per capita
incomes each year. By having a high income per capita, the country’s economic
value will be boosted. Therefore, the amount of poverty can be overcome.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

2. Security Is Guaranteed. The level of security of developed countries is
more secure compared to developing countries. This is also a side effect of
sophisticated technology in developed countries. With sophisticated technology,
security facilities and weapons technology also develop for the better.

3. Guaranteed Health. In addition to ensuring security, health in a developed

country is also guaranteed. This is characterized by a variety of adequate health
facilities, such as hospitals and medical staff who are trained and reliable.
Therefore, mortality rates in developed countries can be suppressed and the life
expectancy of the population can be high. In addition, with adequate health
facilities, population development in developed countries can also be controlled.

4. Low unemployment rate. In developed countries, the unemployment rate

is relatively small because every citizen can get a job.

5. Mastering Science and Technology. The inhabitants of developed

countries tend to have mastered science and technology from which new useful
products such as the industrial pendant lights were introduced to the market.
Therefore, in their daily lives, they have also used sophisticated technology and
modern tools to facilitate their daily lives.

6. The level of exports is higher than imports. The level of exports in

developed countries is higher than the level of imports because of the superior
human resources and technology possessed.
Examples of developed countries include the United States, Germany, and Japan.
A developing country (or a low and middle income country (LMIC), less
developed country, less economically developed country (LEDC), medium-
industrialized country or underdeveloped country) is a country with a less
developed industrial base and a low Human Development Index (HDI) relative to
other countries. Developing countries achieve development narrowly.
(en.wikipedia.com)

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

Characteristics of Developing Countries

1. Income per year which tends to be low. Annual income in developing

countries is not as high as in developed countries due to the high unemployment
rate.

2. Security Not Guaranteed. Unlike in developed countries, security in

developing countries is still very minimal and inappropriate. Therefore, crime
rates in developed countries are still relatively high.

3. Minimal Health Facilities. Health facilities in developing countries are

also relatively minimal. The lack of proper health facilities makes the population
in developing countries more vulnerable to disease. Therefore, the mortality rate
in developing countries is also greater than the mortality rate in developed
countries, which then results in a low life expectancy.

4. Uncontrolled Population Development. Developing countries have a

very large average population compared to developed countries because of
uncontrolled population development. This is also a result of the lack of
education and health facilities.

5. The Unemployment Rate. In developing countries, the unemployment rate

is still relatively high because the available job vacancies are not evenly
distributed. In addition, the level of uneven education is also one of the factors
causing the large unemployment rate.

6. Imports are higher than exports. Due to the low management of natural
resources and human resources in developing countries, developing countries
more often buy goods from abroad.

Examples of developing countries include Indonesia, Brazil, and almost all

African countries.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

Philippines is a democratic society and has a mixed economy. A mixed economy
is a hybrid or two types of economic systems- free enterprise and centrally
planned.

Market competition and an efficient price system or the forces of supply and
demand govern a free enterprise economy. A centrally planned economy is one
wherein production, distribution, employment and consumption are not left to
the workings of the free market but are managed through central government
planning.

Philippine government is characterized as a free market or capitalist system. The

economy relies primarily on private enterprises and the price system in the
allocation of goods and services.

Graphical Analytical Framework of Public Fiscal Policy

The framework consists of converging circles. Fiscal policies are located at the
inner-most circle since it is considered to be located at the heart of public fiscal
administration.

The Philippines is a mixed economy with a government exercising regulatory and

fiscal authority. The inadequacies of the market system and the breakdown of
centralized economies dictate the need for an appropriate measure of
government intervention in economic activities through the application of fiscal
policy.

Fiscal policy is shaped by the interaction of internal and external environment.

The internal environment refers to the government, the private sector and the
economy itself. The government is composed of decision making agencies such
as the Congress, Office of the President, and its support agencies, NEDA, DBM
and COA among others and all other revenue earning and spending units of the
government.

The external environment encompass the international economy composed of

international lending institutions, bilateral and multilateral, international
agreements and economic cooperation such as GATT, WTO, APEC, ASEAN and
the OPEC and institutions that extend Official Development Assistance.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

Fiscal policy is influenced by the external environment. This is shown by the
arrow from the center to the outermost circle to the center. However, it is viewed
that Philippine fiscal policy has little, if at all, or no influence on international
policies, fiscal or otherwise. The external environment is found to have a strong
and direct influence on domestic fiscal policy.

Considerations that were taken into account in the development of

the framework.

● The fiscal administrative system comes up with fiscal policies to realize

desired objectives.
● The formulation, execution and evaluation of fiscal policies are done
within a political context.
● Fiscal policies from formulation tom evaluation, undergo a process of
politicalization
● There are actors involved in the process

● The process takes place within a system which governs how the process
works and how the actors behave and
● The system is governed by an ideology which represents a composite of
the economic, political and social values of society.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

E. Activities/ Exercises.
Write your answer on a sheet of paper. Answer must be handwritten
and you should use your own words. There must be an introduction,
body and conclusion for essay questions (10 points per item)

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 1.) Elaborate the definition of public fiscal administration by Briones.

2.) Make an analysis of the difference of stages in policy cycle from applied
problem solving.

3.) Research on the public fiscal activities in a particular government agency.

Cite at least three (3) government agencies.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Essay Rubrics

CATEGORY 10 8 5 1
Introduction The introduction The introduction The introduction states There is no clear
(Organization) is inviting, states clearly states the the main topic or introduction of the main
the main topic main topic, position position but does not topic, position or
and position and and previews the adequately preview the structure of the paper.
previews the paper, but it is not structure of the paper,
structure of the particularly inviting nor it is particularly
paper to the reader inviting to the reader

Focus on Topic There is one Main idea is clear but Main idea is somewhat The main idea is not
(Content) clear, well- the supporting clear but there is a need clear. There is a
focused topic. information is for more supporting seemingly random
Main idea general information. collection of
stands out and is information.
supported by
detailed
information

Support for Topic Relevant, telling Supporting details Supporting details and Supporting details and
(Content) quality details and information are information are relevant, information are typically
give the reader relevant, but one key but several key issues or unclear or not related to
important issue or portion of the portions of the storyline the topic.
information that storyline is are unsupported.
goes beyond the unsupported.
obvious or
predictable

Conclusion The conclusion is The conclusion is The conclusion is There is no clear

(Organization) strong and leaves recognizable and ties recognizable, but does conclusion, the paper
the reader with a up almost all the not tie up several loose just ends.
feeling what they loose ends ends.
understand what
the writer is
‘ getting at”

Grammar & Writer makes no Writer makes 1-2 Writer makes 3 – 4 Writer makes more than
Spelling errors in errors in grammar errors in grammar or 4 errors in grammar or
(Conventions) grammar or and spelling spelling spelling
spelling

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Rubric for Written Report

Task Description:
Exemplary Accomplished Developing Beginning
w 10 8 5 1
ei Yes Yes, but No, but No
Criteria
gh
t
• Directly relevant • Somewhat relevant A.Remotely related B. Totally unrelated
Topic 10%

C. Good D. Organized; points are E. Some organization; F. Poorly organized; no

somewhat jumpy; points jump around;
organization; logical progression;
sense of beginning and beginning and ending
points are beginning and ending are
ending are unclear
Organization 10% logically vague
ordered; sharp
sense of
beginning and
end
G. Supporting H. Some details are non- I. Details are somewhat J. Unable to find specific
Quality of
25% details specific to supporting to the sketchy. Do not details
Information
subject subject support topic
Grammar, K. No errors L. Only one or two errors M. More than two errors N. Numerous errors distract
Usage, from understanding
25%
Mechanics,
Spelling
O. Vocabulary is P. Vocabulary is varied; Q. Vocabulary is R. Basic vocabulary; needs
varied; supporting details descriptive words
unimaginative; details
Interest Level 10% supporting useful
lack “color”
details vivid

S. Typed; clean; T. Legible writing, well- U. Legible writing, some V. Illegible writing; loose
neatly bound in a formed characters; pages
ill-formed letters, print
Neatness 10% report cover; clean and neatly
too small or too large;
illustrations bound in a report
papers stapled together
provided cover

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 W. Report on time X. Report one class Y. Report two class periods Z. Report more than one week
period late late late
Timeliness 10%

Assignment Score ________ + Beyonder/Bonus ________ =Final Score ___________

F. Evaluation/ Post Test

Test I. True or False.
Directions: Write the word True if the statement is correct and False if it is
wrong. Write your answer on the space before each number.

_________ 1. Fiscal administration and politics are inseparable aspects that

has a great influence on the fiscal policy of a country.

_________ 2. Public means the populace that the government serves.

_________ 3. Fiscal policies are the instruments used by the government to

achieve its objectives and goals.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

_________ 4. There is no need to consult people when it comes to formulating
fiscal administration rules.

_________ 5. External environment influences domestic fiscal policy.

_________ 6. The fiscal policies of a developing and developed countries are

the same.

_________ 7. All fiscal policies from formulation to evaluation has undergone

a process of politicalization.

_________ 8. GAA stands for general appropriations act.

_________9. National Economics and Development Authority is a central

planning body and major player in fiscal policy formulation,
review and assessment.

_________10. Business Finance is a subject in the field of economics that deals

with the expenditures of the government and their impact on
the economy.

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

G. References

Cuaresma, Jocelyn. Public Fiscal Administration. UP Open university.

Wikipdia.org

www.meriam-webster.com

www.google.com

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

Congratulations for completing this module!

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Student’s Information

Name:

Program:

Year and Section:

Contact No.:

E-mail address:

Facebook Account:

Messenger Account:

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

G. References

Cuaresma, Jocelyn. Public Fiscal Administration. UP Open university.

Wikipdia.org

www.meriam-webster.com

www.google.com

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Vision 2020
WPU: the leading knowledge center for
sustainable development of West
Philippines and beyond.

Mission
WPU commits to develop quality human
resource and green technologies for a
dynamic economy and sustainable
development through relevant instruction,
research and extension services.

Core Values (3CT)

Culture of Excellence
Commitment
Creativity

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

 Teamwork

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)

WPU-QSF-ACAD-82A Rev. 00 (09.15.20)