LESSON PROPER

PUBLIC FINANCE
CYCLE
GROUP 4:
ATENCIO, JAMHIL MEDINA, IRISH JOYCE
GAPAN, VIVIENNE VENUS ROBLES, ISAAC
GLORIA, CYRILL EUNICE YAP, JOHN IRA
 DISCUSSION OUTLINE
1 FORMULATION OF FISCAL POLICY

GENERATION OF REVENUE FROM

2
TAXATION & OTHER SOURCES

3 EXPENDITURE OF FUNDS THROUGH THE

NATIONAL BUDGET

4 PUBLIC BORROWINGS

5 ACCOUNTABILITY
 PUBLIC FINANCE

• Refers to the income and outgo of the government in the pursuit of

national objectives.
• It involves the inflow of financial resources in the form of taxes
and other revenues, and the outflow of such resources in the form
of expenditure to finance goods and services.
 FISCAL POLICY

• It is government decisions on spending and taxation that are

intended to improve or maintain the economy.
• Because the government is so large and has such impact on
business, the decisions itENTER
makes has a huge influence on the
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 GENERATION OF REVENUE FROM TAXATION
AND OTHER SOURCES
GENERATION OF REVENUE
Revenues refer to all cash inflows of the national
government treasury.
A tax is a compulsory contribution mandated
by law and exacted by the government for a
public purpose.
GENERATION OF REVENUE
Tax revenue, which forms the dominant share of revenue for
many government units, is composed of compulsory
transfers to the general government sector.
All other types of revenue are frequently combined into a
heterogeneous category of nontax revenue.
Non-tax revenues refer to all other impositions or collections
of the government
Major Classes of Tax Revenue

The major classes of tax revenue are:

a) taxes on income and profits;
b) taxes on property;
c) taxes on domestic goods and
services;
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d) taxes on international trade and
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transactions;
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e) other sources.
 EXPENDITURE OF FUNDS THROUGH THE
NATIONAL BUDGET
- A budget is a plan of financial operation composed of estimate or
proposed expenditure for a given period or purposed and the
proposed means of financing them.

- The principal activities of government are normally controlled

by a system of budget.

The Government decides how much money to spend and

what to spend it on, and how to raise the money it has
decided to spend. Once these decisions are made, the budget
system ensures they are carried out.
 Phases on budgetary Procedures:
Expenditure of Funds – National Budget

PREPARATION AND BUDGET AUTHORIZATION BUDGET EXECUTION BUDGET

PRESENTATION AND LEGISLATION AND OPERATION ACCOUNTABILITY

Involves the evaluation of

Covers the implementation
This phase covers the It involves the submission expenditures and performance
estimation, determination and of the various operational
of the national budget to the against the predetermined budget.
translation of government aspect of the budget.
legislative body to review, Obligation incurred, personnel
revenues, priorities and Such as release ofallotments used and work accomplished are
deliberation, and formulation
activities. to the various agencies, the compared with the plans and
of an appropriate bill to be
Government entities prepare continuing review of the fiscal goals of various agencies,
forwarded to the president for
their budgets for the year to be position, and other related submitted at the time respective
approval and signature.
submitted to the Department of activities. budget is prepared.
Budget and Management
(DBM) for review.
 PUBLIC BORROWINGS

BORROWINGS
- refer to funds obtained from repayable
sources, such as loans secured by the
government from financial institutions and
other sources, both domestic and foreign, to
The government borrows from any of the following
finance various government projects and reasons:

activities. A.Unforseen Emergecies

B. For economic development
C.To finance national government deficits
D. To meet the expenses and spending
 PUBLIC BORROWINGS

SOURCES OF PUBLIC BORROWINGS EFFECTS OF PUBLIC BORROWING

1.Internal - Internal borrowing - Public borrowing leads to foreign

refers to a country's borrowing exchange outflow and consequently

from own national resources. balance of payment deficits in long

run during debt servicing.

2.External -  External borrowing

- Loans are public burdens
refers to the resources provided
because it is the public that will
from a foreign country. repay the loans through increased
taxes to the government.
 PUBLIC BORROWINGS

Public debt, sometimes also referred to as government

debt, represents the total outstanding debt of a country's
government. 

Public debt includes obligations incurred by the government and

all its branches, agencies and instrumentalities, including those of
government monetary institutions.
 ACCOUNTABILLITY

Accountability
- important part of the budget cycle
- requires government agencies and departments to submit
quarterly
and monthly financial reports and documents for audit

- it guarantees that government funds are being used effectively

and efficiently to meet the State's socio-economic goals.
 ACCOUNTABILLITY

Accountability may be examined and evaluated through:

1.Performance Targets and Outcomes

2.Budget Accountability Reports
3.Review of Agency Performance
4.Audit Conducted by the Commission On Audit
(COA)
 ACCOUNTABILLITY

Government accountability agencies

1.The Office of the Ombudsman

2.Sandiganbayan
3.Presidential Anti-Graft Commission
4.the Civil Service Commission
5.Commission on Audit
 QUIZ TIME

Test I: IDENTIFICATION

1. Requires government agencies and departments to submit quarterly and monthly

financial reports and documents for audit.
2. This is the process of allocating the revenue and borrowed funds in order to execute
the programs, projects and the activities of the national government agency.
3. It is creating a plan for how income will be used to cover expenses and save money.
4. It refers to all cash inflows of the national government treasury.
5. It is compulsory contribution mandated by law and exacted by the government for a
public purpose.
 QUIZ TIME

Test II: TRUE OR FALSE

1. The Office of the Ombudsman is also called as the government’s anti-corruption

court.
2. Internal borrowing refers to a country's borrowing from own national resources.
3. Fiscal policy is a corporate decisions on spending and taxation that are intented to
improve or maintain the economy.
4. Public debt, sometimes also referred to as government debt, represents the total
outstanding debt of a country's government. 
5. Public Finance refers to the income and outgo of the government in the pursuit of
national objectives.
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