Fundamental principles of public finance/public fiscal administration in the Philippines

Comprehensiveness: Public finance should cover all aspects of government financial activities, including
revenue generation, expenditure management, and financial reporting.

Transparency: Public finance should be transparent, with clear and accessible information about government
revenues, expenditures, and financial condition.

Accountability: Public finance should be accountable, with clear lines of responsibility and mechanisms for
oversight and control.

Efficiency: Public finance should be efficient, with minimal waste, fraud, and abuse.

Equity: Public finance should be equitable, with a fair distribution of the tax burden and public services.

Sustainability: Public finance should be sustainable, with a long-term perspective that ensures fiscal stability
and intergenerational equity.

Flexibility: Public finance should be flexible, with the ability to adapt to changing circumstances and
priorities.

Predictability: Public finance should be predictable, with stable and reliable revenue sources and expenditure
patterns.

Participation: Public finance should involve public participation, with opportunities for citizens to engage in
the budget process and hold government accountable.
Integrity: Public finance should be guided by integrity, with ethical behavior and adherence to legal and
regulatory requirements.

Public fiscal administration is a critical aspect of governance in any country, including the Philippines. As a
graduate student studying public administration, it is essential to understand the fundamental principles that
govern public fiscal administration in order to effectively manage public finances and ensure accountability
and transparency in government spending. In the Philippines, the principles of public fiscal administration are
guided by the principles of fiscal responsibility, accountability, transparency, efficiency, and equity.
Fiscal responsibility is one of the key principles of public fiscal administration. It requires the government to
ensure that public finances are managed in a sustainable manner to achieve long-term fiscal stability. This
involves careful budgeting, monitoring of government spending, and ensuring that public resources are used
efficiently and effectively to achieve the objectives of government programs and projects.
Another important principle of public fiscal administration is accountability. This principle requires
government officials to be answerable for their actions and decisions in managing public finances. This
includes reporting on the use of public funds, auditing government expenditures, and holding officials
accountable for any misuse or mismanagement of public resources.
Transparency is also a fundamental principle of public fiscal administration in the Philippines. It requires the
government to be open and transparent about its financial activities, including budgeting, spending, and
revenue collection. Transparency helps to build public trust and confidence in government institutions and
ensures that citizens are informed about how their tax dollars are being spent.
Efficiency is another key principle of public fiscal administration. It requires the government to use public
resources in a cost-effective manner to achieve the maximum benefit for the public. This involves prioritizing
government programs and projects based on their impact and cost-effectiveness, implementing performance-
based budgeting, and continuously evaluating the efficiency of government operations.
Equity is also an important principle of public fiscal administration in the Philippines. It requires the
government to ensure that public resources are distributed fairly and equitably to all citizens, regardless of
their socio-economic status. This involves designing tax and spending policies that promote social justice and
reduce inequality, and ensuring that government programs and services are accessible to all citizens.
In addition to these principles, public fiscal administration in the Philippines is guided by the principles of
sound fiscal management, fiscal sustainability, and intergenerational equity. Sound fiscal management
involves maintaining a balanced budget, controlling government debt, and ensuring that public finances are
managed in a prudent and responsible manner.
Fiscal sustainability is also a key principle of public fiscal administration. It requires the government to
ensure that public finances are sustainable in the long run, by balancing expenditures with revenues,
minimizing government deficits, and managing public debt at sustainable levels. This involves careful
planning and monitoring of government finances to ensure that future generations are not burdened with
excessive debt.
Intergenerational equity is another important principle of public fiscal administration in the Philippines. It
requires the government to ensure that current generations do not consume all public resources at the expense
of future generations. This involves careful planning and management of public finances to ensure that
resources are allocated in a way that benefits both current and future generations.
In conclusion, the fundamental principles of public fiscal administration in the Philippines are essential for
promoting good governance, accountability, and transparency in the management of public finances. As a
graduate student studying public administration, it is important to understand these principles in order to
effectively manage public resources and promote the well-being of all citizens. By upholding these principles,
the government can ensure that public finances are managed in a sustainable, accountable, and equitable
manner, for the benefit of all Filipinos.

The fundamental principles of public finance and fiscal administration in the Philippines are designed to
ensure the effective and responsible management of the country's financial resources. While these
principles are not exhaustively listed in any single source, they generally include:

1. **Fiscal Responsibility**: Fiscal policies should be managed responsibly, maintaining a sustainable

balance between revenues and expenditures to avoid excessive debt and ensure long-term economic
stability.

2. **Transparency and Accountability**: Budgeting, collection, and spending of public funds should be
conducted with the highest degree of transparency. The government should provide clear and accurate
information regarding its fiscal operations and be accountable to its citizens.

3. **Efficiency and Economy**: Public funds should be utilized in ways that achieve the maximum
desired outcomes with the least possible resources, avoiding waste and misuse of government
resources.

4. **Equity**: The collection and distribution of public resources should be fair, with tax burdens and
government benefits distributed in an equitable manner throughout society. Tax systems should be
progressive, meaning those with greater ability to pay contribute a larger share relative to their income.
5. **Prudent Use of Resources**: Government resources should be managed prudently, with
investments prioritizing projects that maximize social benefits, support growth, and contribute to
national development.

6. **Stability**: Fiscal management should aim to contribute to the economic stability of the country,
utilizing fiscal tools to manage inflation, unemployment, and other macroeconomic variables.

7. **Regulatory Compliance**: Fiscal administration must comply with legal and regulatory frameworks
to ensure that every financial transaction is lawful and ethical.

8. **Effective Fiscal Mobilization**: Ensuring that the fiscal policies and measures in place are effective
in mobilizing government resources, enabling the country to finance its own development.

9. **Development Oriented**: Public finance policies should contribute to sustainable development,

supporting sectors such as infrastructure, education, healthcare, and employment to improve the
standard of living for all citizens.

10. **Sound Fiscal Management**: This involves the adoption of comprehensive and reliable accounting
and reporting systems, internal controls, and performance auditing mechanisms.

It's important to note that these principles do not just dictate ideal practices but are often enshrined in
laws, such as the Constitution of the Philippines, the Government Auditing Code of the Philippines, and
other legal statutes and administrative orders. They are implemented through the coordinated efforts of
various government agencies, including the Department of Finance, Bureau of the Treasury, National
Economic and Development Authority, and the Commission on Audit, among others.