RIMBERIO CO

FISCAL PLANNING AND

ADMINISTRATION
EDUCATION AND LEARNING PRESENTATION
FISCAL MANAGEMENT
Refer to the process of managing the financial resources of an organization or
government. It involves the planning, organizing, directing, and controlling of
financial activities to achieve the organization's objectives.

In general, fiscal management and administration includes activities such as

budgeting, accounting, financial reporting, financial analysis, internal controls,
and financial risk management. It also involves managing cash flow, overseeing
investments, and managing debt.

Effective fiscal management and administration help organizations and

governments to ensure that their financial resources are used efficiently and
effectively to achieve their goals. It involves making informed decisions about
how to allocate resources and monitor financial performance to ensure
accountability and transparency.
Formulation, implementation and evaluation of policies and decision

Overall, fiscal management and administration are essential for the

financial stability and long-term success of organizations and
governments.
TIMELINE & HISTORY
Medieval Europe - During the medieval period, European monarchs
developed more sophisticated systems of taxation and public finance
to support their military campaigns and administrative activities. This
included the development of systems of taxation, accounting, and
financial management, as well as the use of debt and borrowing to
finance wars and other government activities. Key proponents of this
approach included King Philip IV of France, who implemented a series
of financial reforms to strengthen the French monarchy, and King
Henry VII of England, who established a strong financial foundation for
the Tudor dynasty.

Early modern Europe - In the early modern era, the rise of modern
nation-states led to the development of more advanced systems of
public finance. This included the development of modern taxation
systems, as well as the establishment of central banks and other
financial institutions. Key proponents of this approach included Jean-
Baptiste Colbert, who served as finance minister to King Louis XIV of
France, and Adam Smith, who wrote extensively about the role of
government in economic affairs and argued for the importance of a
balanced budget and sound financial management.
Modern era - In the 20th century, fiscal management became even
more important as governments around the world sought to manage
their economies and provide public services. This included the
development of Keynesian economics, which emphasized government
intervention in the economy during times of crisis, as well as the rise
of monetarism and other free-market approaches to economic
management. Key proponents of modern fiscal management include
economists like John Maynard Keynes, who advocated for government
spending and investment to stimulate economic growth, and Milton
Friedman, who emphasized the importance of free markets and
limited government in economic affairs.
IS PRIVATE FINANCE AND PUBLIC FINANCE
THE SAME??
 SIMILARITIES
1. Both public finance and private finance involve financial decision-making. In both fields,
decisions are made based on available information, economic conditions, and financial
objectives.
2. Both fields require financial analysis and forecasting. Financial analysis is used to evaluate
the financial health of an organization, while forecasting is used to predict future financial
trends and outcomes.
3. Both fields use similar financial tools and techniques, such as budgeting, accounting,
financial reporting, and financial planning.
4. Both public finance and private finance require financial accountability. In public finance,
government officials are accountable to taxpayers for how public funds are used, while in
private finance, managers are accountable to shareholders for the financial performance of
the company.
5. Both fields are impacted by economic conditions such as inflation, interest rates, and
financial markets. Economic conditions can affect revenue and expenditure decisions,
financial planning, and financial risk management.
 DIFFERENCES
1. Public finance is subject to more regulations and public scrutiny than private finance. This is because
public finance involves the management of taxpayer funds, which must be used in the public interest.
2. Public finance has different sources of revenue and expenditure compared to private finance. Public
finance relies on taxes, fees, and government borrowing to fund public goods and services, while
private finance relies on personal income, corporate profits, and investments.
3. Public finance has different objectives compared to private finance. The main objective of public
finance is to provide public goods and services, such as education, health care, and public safety. The
main objective of private finance is to maximize profits.
4. Public finance has a different budgeting process compared to private finance. In public finance, the
budget process is often more complex and involves multiple layers of government and stakeholders.
In contrast, private finance often has a simpler budgeting process that is controlled by the
management of the company.
5. Public finance faces different financial risks compared to private finance. Public finance is exposed to
political risks, such as changes in government policies or political instability, which can impact
revenue and expenditure decisions. Private finance is exposed to
HOW IS PUBLIC FISCAL MANAGEMENT
IMPORTANT?
1. Economic stability: Effective public fiscal administration can contribute to economic stability by promoting sound
macroeconomic policies and avoiding fiscal crises. This can in turn foster economic growth and reduce poverty.
2. Inter-governmental relations: Public fiscal administration is important for managing the relationships between
different levels of government (e.g. federal, state, and local) and ensuring that resources are allocated fairly and
efficiently. This can help avoid duplication of efforts and promote coordination between different levels of
government.
3. Risk management: Public fiscal administration helps governments identify and manage financial risks, such as
fluctuations in revenue or unexpected expenses. This can help governments avoid financial crises and maintain
fiscal sustainability.
4. Public sector performance: Effective public fiscal administration can contribute to improved performance in the
public sector. This includes ensuring that resources are allocated efficiently and effectively, and that public goods
and services are delivered in a timely and cost-effective manner.
5. International cooperation: Public fiscal administration is increasingly important in the context of globalization
and international cooperation. This includes ensuring that governments meet international financial reporting
standards and promoting transparency and accountability in international financial transactions.

Mikesell, J. L. (2014). Fiscal administration: Analysis and application for the public sector
 RIMBERIO CO
COMPONENTS OF FISCAL MANAGEMENT
Mikesell, J. L. (2014). Fiscal administration: Analysis and application for the public sector
PUBLIC REVENUE
01
refers to the income or financial
resources that a government receives
from various sources, including taxes,
fees, fines, and other charges. This
revenue is then used by the government
to fund public services, infrastructure
development, and other government
activities.
04 BUDGETING
This component refers to the process of
planning, preparing, and executing the
government budget. It involves setting
budget priorities, estimating revenue and
expenditures, and monitoring budget
performance to ensure that resources are
being used effectively.
PUBLIC EXPENDITURE
02 refers to the spending of public
funds by governments on various
goods and services, such as public
infrastructure, education,
healthcare, social welfare
programs, defense, and other
government operations
ACCOUNITING & FINANCIAL
05
REPORTING
involves maintaining accurate financial
records of government transactions,
preparing financial statements, and
providing transparency in financial
reporting to stakeholders.
PUBLIC DEBT MANAGEMENT
03 refers to the process of managing
the government's debt, including
its borrowing, repayment, and
servicing. It involves managing the
level of government debt, the cost
of borrowing, and the risks
associated with indebtedness.
06
FINANCIAL MANAGEMENT
involves maintaining accurate financial
records of government transactions,
preparing financial statements, and
providing transparency in financial
reporting to stakeholders.
 ROLE OF GOVERNMENT IN FISCAL
PLANNING AND ADMINISTRATION
The government plays a critical role in fiscal planning and administration by establishing policies and
regulations that guide the use and allocation of public resources. Fiscal policies are used to promote
economic stability, manage public finances, and ensure that public resources are used effectively and
efficiently. Fiscal regulations, on the other hand, provide guidelines on how public finances should be
managed, ensuring transparency and accountability in the use of public resources.

e.g. Fiscal Policy - Stimulus e.g. Fiscal Regulations - The

Packages, Taxation, Public National Budget, Procurement
Investment Regulations, Debt Management

Governments also establish institutions such as central banks and financial regulators to oversee the
financial system and ensure its stability. Central banks are responsible for managing monetary policy,
which involves controlling the supply of money and credit to promote economic growth and stability.
Financial regulators, on the other hand, oversee financial institutions and markets to ensure their
stability and protect consumers.
RIMBERIO CO

ROLE OF GOVERNMENT IN PUBLC FISCAL

ADMINISTRATION

FISCAL POLICIES AND FINANCIAL

REGULATIONS CENTRAL BANKS
REGULATORS

EFFECTIVE AND
PROMOTE
EFFICIENT
ECONOMIC
MANAGEMENT
GROWTH AND
OF PUBLIC
STABILITY
RESOURCES
 RIMBERIO CO

FISCAL PLANNING
Mikesell, J. L. (2014). Fiscal administration: Analysis and application for the public sector

the process of setting financial goals and developing a plan to achieve those goals.
Fiscal planning is a critical component of fiscal administration, as it helps ensure that
government programs and services are financially sustainable and effective in
achieving their objectives.

GOAL SETTING

REVENUE EXPENDITURE
FORECASTING FORECASTING

BUDGET MONITORING AND

DEVELOPMENT EVALUATION
 RIMBERIO CO

KEYNESIAN ECONOMICS
John Meynerd Keynes

Keynesian economics is a macroeconomic theory that emphasizes the importance of

government intervention in managing the economy and promoting economic growth. This
theory is highly relevant to the study of fiscal planning and management, as it provides a
framework for understanding how government spending and taxation policies can be used
to stabilize the economy over the business cycle.

HOW IS THIS RELEVANT?

Keynesian economics is highly relevant to the study of fiscal planning and management, as it
provides a framework for understanding the role of government in managing the economy
and promoting economic growth.

CENTRAL IDEA
One of the central ideas of Keynesian economics is that during periods of economic
downturns or recessions, government intervention is necessary to boost aggregate demand
and stimulate economic growth. This can take the form of increased government spending,
tax cuts, or monetary policy interventions by the central bank. Fiscal planning and
management involves making decisions about government spending and taxation policies,
so an understanding of Keynesian economics is essential for designing effective policies that
can promote economic growth and stability.
 RIMBERIO CO

CONCEPT:
Keynes, J. M. (1936). The general theory of employment, interest and money. Palgrave
Macmillan.
Keynesian economics argues that economic output and employment are primarily
determined by aggregate demand, which is the total amount of goods and services that
consumers, businesses, and governments are willing to purchase. In a recession, Keynesians
argue that there may be insufficient aggregate demand to generate full employment and
output, leading to high levels of unemployment and idle production capacity.

FISCAL PLANNING AND MANAGEMENT

Fiscal planning and management involve making decisions about how governments should
allocate their resources and manage their finances to achieve their economic objectives. An
understanding of Keynesian economics is crucial for designing effective fiscal policies that
can promote economic growth, stability, and prosperity.

SUMMARY OF THE THEORY

Keynesian economics suggests that fiscal policy should be used in a counter-cyclical manner,
meaning that during periods of economic growth, governments should aim to balance their
budgets or even run surpluses, while during periods of recession, governments may need to
run deficits to stimulate demand and promote economic growth. an understanding of
Keynesian economics is essential for policymakers and fiscal managers who want to design
and implement effective fiscal policies that can promote economic growth, stability, and
prosperity over the long term.
 RESULTS OF SUCCESSFUL PUBLIC FISCAL
PLANNING AND ADMINISTRATION IN THE
PHILIPPINES
PANTAWID PILIPINONG
PROGRAM (4PS)
This program was launched in 2008 with the aim of reducing poverty and improving health
and education outcomes for the poorest households in the Philippines. It provides cash
grants to eligible families who keep their children in school and take them for regular health
check-ups. Since its launch, the program has benefited millions of Filipino families and has
been recognized by international organizations for its success.

NATIONAL GREENING PROGRAM

This program was launched in 2008 with the aim of reducing poverty and improving health
and education outcomes for the poorest households in the Philippines. It provides cash
grants to eligible families who keep their children in school and take them for regular health
check-ups. Since its launch, the program has benefited millions of Filipino families and has
been recognized by international organizations for its success.

PUBLIC-PRIVATE PARTNERSHIP
(PPP) PROGRAM
This program was initiated in 2010 with the aim of harnessing private sector resources and
expertise to improve public infrastructure and services. Through this program, the
government has successfully implemented projects such as the NAIA Expressway, the Cavite-
Laguna Expressway, and the Mactan-Cebu International Airport Terminal. These projects
have helped improve connectivity, reduce traffic congestion, and boost economic growth in
the country.
 BACKLASHES OF FISCAL ADMINISTRATION
1. Revenue mobilization: Governments need to collect sufficient revenue to fund public services and infrastructure.
However, many countries struggle with low tax compliance rates, weak tax administration, and informal economies that
are difficult to tax.
2. Public debt: Many governments have high levels of debt, which can have significant economic consequences if not
managed properly. Debt service can become a burden on public finances, and high levels of debt can lead to reduced
investor confidence and lower economic growth.
3. Corruption and fraud: Corruption and fraud can occur in any public financial management system. This can take the
form of embezzlement, bribery, or other forms of financial mismanagement. Corruption can undermine public trust in
government and divert resources away from public services.
4. Inefficient spending: Public spending can be inefficient or wasteful if not properly managed. This can lead to poor
quality public services, ineffective public programs, and reduced public trust in government.
5. Lack of transparency and accountability: Lack of transparency and accountability in public fiscal administration can
hinder effective public financial management. It can also lead to the misuse of public funds and reduced public trust in
government.
6. Limited capacity: Many countries struggle with limited capacity in public financial management, including insufficient
human resources, weak institutional structures, and inadequate financial management systems. These factors can limit
the effectiveness of public fiscal administration.
 LEGISLATION OF PHILIPPINE FISCAL ADMINISTRATION
Official Gazette of the Philippines. (n.d.). Official Gazette of the Philippines. Retrieved
March 14, 2023

National Internal Revenue Code (NIRC) - This law governs the collection of taxes and other revenues by the Bureau
of Internal Revenue (BIR).
Tariff and Customs Code of the Philippines (TCCP) - This law governs the imposition and collection of duties, taxes,
and other charges on imports and exports by the Bureau of Customs (BOC).
General Appropriations Act (GAA) - This law is the annual budget of the government that provides for the allocation
and use of public funds.
Local Government Code (LGC) - This law devolves certain fiscal and administrative powers and responsibilities from
the national government to local government units (LGUs).
Government Procurement Reform Act (GPRA) - This law governs the procurement of goods, services, and
infrastructure projects by government agencies.
Anti-Money Laundering Act (AMLA) - This law aims to prevent and suppress money laundering activities in the
Philippines.
Foreign Currency Deposit Act (FCDA) - This law provides for the confidentiality of foreign currency deposits and
investments in the Philippines.

These laws are enforced by various government agencies such as the BIR, BOC, Department of Budget and Management
(DBM), and Commission on Audit (COA), among others.
RIMBERIO CO

REFERENCES
Keynes, J. M. (1936). The general theory of employment, interest and money. Palgrave
Macmillan.

Mikesell, J. L. (2014). Fiscal administration: Analysis and application for the public
sector

Poon Fai, A. (2012). Ethics in Fiscal Administration: An Introduction. Routledge.

Official Gazette of the Philippines. (n.d.). Official Gazette of the Philippines. Retrieved
March 14, 2023
ACKNOWLEDGEMENT