Emoji Quiz: Places in the Philippines

Tagaytay

Bicol

Batangas
I. Study of Public
Fiscal Administration
JOSHUA ALFONSO PUATO
Public Fiscal Administration

 Is the act of managing incoming and outgoing monetary

transactions and budgets for governments, educational
institutions, non-profit organizations, and other public
service entities

 Refers to systems, processes, resources, and the policy,

environment, government, the inter-governmental and
inter-local fiscal relations, affecting among others.
Major Activities in Public Fiscal
Administration:
1. Fiscal Policy Formulations
2. Taxation and revenue administrations;
3.budgeting and expenditures;
4. Public borrowings and debt management;
5. Accounting and Auditing;
For after all, Public Fiscal Administration is about public finance which pertains to the raising
and spending revenue for the functions of the state. These functions have been changing with
the development of the society.
Provide the public with desired services and how they secure financial resources to pay these
services.
The Performance of these functions leads to expenditures. Through Taxes, Fees, Sale of Goods
and services and loans.
Importance of Public Fiscal
Administration
 Provision of public goods. For providing public goods like roads, military
services, street lights and etc.
 Public fiscal enables governments to tackle or offset undesirable side effects of a
market economy. The side effects are called spill over or externalities.
 It helps governments to redistribute income. To reduce the inequality in the
economy, the governments can impose taxes on the richer people and provide
goods and services for the needy ones.
 It provides programs for moderating the incomes of the rich and poor. Such
programs include social security, welfare and other social programs.
Subject Matters of Public Fiscal
Administrations
 Public Expenditures: It deals with the principles and problems relating to the
allocation of public spending.
 Public Revenue: The income of the state is referred to as Public Revenue. In this
branch, we study the various ways of raising revenue by the public bodies
 Public Debt: The government borrows when its revenue falls short of its
expenditure.
 Public Budgeting: It deals with the methods of Budget preparations,
authorization, execution and accountability of budgets Government budgeting is
the critical exercise of allocating revenues and borrowed funds to attain the
economic and social goals of the country.
 Economic Stabilization and Growth: The use of Public Revenue and Public
Expenditure to secure stability in levels of prices by controlling inflationary as
well as deflationary pressured is Studied.
Public Finance and Private Finance

The understanding and the study of public finance is facilitated by

a comparison of the public or government finance with private or
individual finance. Such as comparison will help us to know how
the aims and objectives and methods of public Finance operation
are similar or differed from the financial operations of the
individual.
SIMILARITIES
 Both the State as well individual aim at the satisfaction of human wants through
their financial operation.
 Both the States and Individual at times have to depend on borrowing, when
expenditures are greater than incomes.
 Both Public Finance and Private Finance have income and expenditure. The
Ultimate aim of both is to balance their income and expenditure.
 For both kinds of finances, the guiding principles is rationality. Rationality is in
the sense that maximization of personal benefits and social benefits through
corresponding expenditures.
 Both are concerned with the problem of economic choice, that is. They try to
satisfy unlimited ends with scarce resources having alternative uses.
DISSIMILARITIES
 The private individual has to adjust his expenditures to his income.
 The government has large sources of revenue than private individuals. Thus, at the time of financial
difficulties the state can raise internal loans from its citizens as well as external loans from foreign
countries. In the case of private individual, all borrowings are external in nature.
 The state, when hard pressed, can resort to printing of currency, as an additional source of revenue. In
fact, during emergencies like war, it meets its increased financial obligations by printing new currency.
But and individual cannot raise income by creating money
 A surplus budget is always good for a private individual. But surplus budgets may not be good for the
government. It implies two things. (a) The government is levying more taxes on the people than is
necessary and (b) the government is not spending as much as the welfare of the people it should.
 An individual’s spending policy has very little impact on the society as a whole. But the state can
change the nature of an economy through its fiscal policies.
 The Pattern of expenditure in the case of private finance is often influence by customs, habits social
status etc. The pattern of government expenditures is guided by the general economic policy followed
by the government.
II. Democracy, People and Governance

 In Capitalism, Socialism and Democracy, defines

democratic regimes as a set of institutions leading to a
struggle for political power—a competition to win the
people’s vote and gain the right to exercise that power.
This view influenced the work of subsequent political
economists, most notably who portrayed electoral politics
as a fight for the median voter.
How Politics Affects Fiscal Policy?
 Fiscal policy, which was once defined as “the matter of
who gets what, when, and how”, is heavily influenced by
political factors. A typical government performs three core
functions: allocation, distribution, and stabilization, All of
these functions are intrinsically political. Politics has a
direct impact on the provision of public goods and is of
particular relevance with regard to stabilization and
redistributive policies.
Political Fragmentation
 Most studies focusing on the political economy of fiscal deficit and public debt
find that fragmentation in decision making is damaging for expenditure control
and eventually for fiscal discipline. Political fragmentation affects the three
government functions—the provision of public goods, stabilization, and income
redistribution. In the presence of multiple parties with different ideologies,
achieving consensus on balanced budgets is difficult because every party will
have its favorite spending program, but it will only internalize a part of the costs
and distortions of the associated increase in revenues needed to finance spending.
This is the “common pool problem
Politics and Fiscal Administration
 Administration of Fiscal Policies actually takes place within Political System.
 Public Fiscal Administration and Political Process are interrelated and influence
each other.

ADMINISTRATION
Referring to carrying out or implementing that
collective will of the society
POLITICS
Referring to formulating of laws and policies as
expression of the collective will of the state.
Legislature

Rule Making

Also engaged POLICY implementation thru their

PORK BARREL Funds
Formulate and recommend urgent policy measures
for congressional deliberation and approval
References on this report:

 Kiyong, Kim. "Fiscal Administration and Public Sector“

 Lai En Xin. "Public Fiscal Administration Part I“
 Universidad de Manila. "Fiscal Administration by
Theresa".
 https://www.youtube.com/watch?v=ew7ZBN7Mk_0
 Overview of Public Fiscal Administration – Mark Lester
Naveles