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Classifications of

Philippine Public
The Philippine public
expenditures are classified in
such a way as to permit the
measurement of the costs and
benefits of the entire program
of the government.
National government expenditures
are broadly classified into five (5)
types which are:
1. Level of government
2. Nature of expense
3. Functional categories
4. Type of funds
5. Organizational Units
1. Level of government
a.National Government
Refers entirely to the machinery of the
central government, as distinguished from
the different forms of local government.
b. Local Government
Refers to the political subdivisions established
by or in accordance with the Constitution
Officially local government in the
Philippines, often called local government
units or LGUs, are divided into three levels
– provinces and independent cities;
component cities and municipalities;
and barangays.
2. Nature of expense
a.Current operating expenditures
Purchases of goods and services in current
consumption within the fiscal year, including
the acquisition of furniture and equipment
normally used in the conduct of government
operations and for temporary construction of
promotional research and similar purposes.
I. Personal services
salaries and wages, social security
contributions,overtime pay, etc.

II. Maintenance and other operating

traveling expenses, supplies and materials,
water, illumination and power Services, rent,
2. Nature of expense
b. Capital Expenditures

Are outlays which are used for the purchase

of goods and services, the benefit of which
extend beyond the Fiscal Year and which add
to the assets of the government including
investments in the capital of the government
owned and controlled corporations and their
3. Functional categories
Are broad grouping of expenditures covering
the main functions of the national
a) Economic Development/Services
b) Social Development/Services
c) National Defense
d) General Government/Public Services
e) Debt Service
a.Economic Development/Services
Covers the agriculture and natural resources,
industry, trade and tourism, utilities and

b. Social Development/Services
Covers those of education, public health and
medicare, housing and community amenities,
social service and welfare, and other social
service expenditures not classified elsewhere.
c. National Defense/Security
Includes all military expenditures but excluded
those for the police force.

d. General Government/Public Services

Includes all general administration expenses
(inclusive of allotments to local governments),
administration of justice, pension, gratuities,
contribution to international organizations,
public order and safety, general research and
other general public services.
e. Debt Service
Expenditures are inclusive of redemption, interest
payments, loan repayments and sinking fund.
4. Type of funds

a.General fund

b.Special Account – General fund

c.Bond fund
a.General Fund
Is available for any purpose to which the
legislative body may choose to apply it, and is
composed of the receipts or revenue which
are not by law or by contractual agreement
applicable to a specific purpose or purposes.
b. Special Account – General fund
Refers to the fund created for a special
purpose or object and is used to defray
specified expenditures or classes of
expenditures. All money collected on any tax
levied for a special purpose of object shall be
treated as a special fund and paid out for such
purposes only.
c. Bond fund
Refers to the fund arising from bonds floated
by the government for specific purpose such
as permanent public improvements.
5. Organizational Units
by department and governmental
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