11/22/2016

Patterns of
Philippine
Expenditure

Philippine Expenditure
Policies
Redistribution of income and wealth and balanced
development.
Economic development.

Stability
Countryside development

xpenditure system is the

governments fiscal arm in
producing, allocating and
distributing social goods and
services.

The Developmental Problems

of Developing Countries
Extreme class disparity

Low capital formation and investments

Inadequacy of revenue

Classification of Philippine
Public Expenditures
Lev el of
G ov ernment
National
Government
Local
Government

Nature of
Ex pense
Current
Operating
Expenditures
Capital
Expenditures

Classification of Philippine
Public Expenditures
Functional
Categories
Economic
Development /
Services
Social Development/
Services
Defense
General Public
Services
Debt Services

Type of Funds
General Fund
Special Fund
Bond Fund

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Patterns of Governmental
Expenditure According to Percent
Growth and Percent of Gross
Domestic Product (GDP)

Conclusions
There is a constant increase in public expenditures caused by
continuous expansion and improvement of governments function and
services.

35

Urbanization, growing population and changing economic needs of

the people incur more expenses in the government.

30

25

20
% of GDP (% )
Percen t Growth (% )

15

The distribution of public expending in different sectors reflects the

priorities of every administration.

10

Different reduction measures such as streamlining of the bureaucracy

are implemented to reduce the budget deficit. However, the number of
employees continued to grow since the governments function is
expanding.

0
200 1

200 2

200 3

200 4

200 5

200 6

200 7

200 8

200 9

201 0

201 1

Expenditure Patterns According to

Nature of Expenses
1,600,000, 000

Recommendations
Unnecessary spending should be eliminated so that
funds will be diverted to more important services.

1,400,000, 000

1,200,000, 000
1,000,000, 000

2010 (Actual)
2011 (Adjusted)
2012 (Proposed)

800,000, 000
600,000, 000

Vigilant implementation of existing fiscal policies that will

result in the elimination of corrupt practices in the
government.
Strict monitoring of the spending practices of the
different operating units. This will make sure that only
lawful and important purchases and disbursements are
done.

400,000, 000
200,000, 000
0

Current Op era ting

Expenditures (MOOE, PS)

Capi tal Outlays

Expenditure Patterns of the National

Government According to Function
700,000

600,000

500,000
Economic Services

400,000

Social S ervices
Defense

300,000

An Evaluation of
Income and Expenditure
of the Government
for the Year 1997 2011

General Public Servi ces

Debt S ervices
200,000

100,000

0
2010

2011

2012 (P roposed)

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1,600,000

1,400,000

1,200,000

Joseph Ejercito Estrada (1998 2000)

Total Income
Total Expendit ures
Surplus (Def icit)

1,000,000

800,000

600,000

400,000

200,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-200,000

-400,000

Fidel V. Ramos (1992 1997)

Joseph Ejercito Estrada (1998 2000)

Increasing financial
deficits occur during
the Estrada
administration due to
decrease in tax effort
and repayment of the
Ramos
administrations debt
to contractors and
suppliers

Fidel V. Ramos (1992 1997)

Gloria Macapagal Arroyo

(2001 2009)

Budget surpluses are

experienced due to
substantial gains
from massive sale
of government
assets and strong
foreign
investments

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1,600,000

Gloria Macapagal Arroyo

(2001 2009)

1,400,000

1,200,000

Total Income
Total Expendit ures
Surplus (Def icit)

Income and expenditure

are both increasing
and there are still
large fiscal deficits.
This occurrence is
attributed to
weakening of tax
effort and rising of
debt services due to
peso depreciation.

1,000,000

800,000

600,000

400,000

200,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-200,000

-400,000

Benigno S. Aquino III

(2010 2011)

Benigno S. Aquino III

(2010 2011)
There is a significant
decrease on the deficit
since there is a
strengthening campaign
on tax collection. Fiscal
discipline to state
owned firms and anticorruption campaign
during Aquinos
administration could be
credited.