FISCAL

ADMINISTRATION
 9 M’s of Management
1. Man
2. Money
3. Materials
4. Machines
5. Methods
6. Markets
7. Minutes
8. Motivation / Morale
9. Measurement
 Fiscal Administration
 Isthe act of managing incoming &
outgoing monetary transactions &
budgets for gov’ts, educational
institutions, nonprofit organizations and
other public service entities
 Fiscal Administration
 Refersto system processes, resources
and the policy, environment,
government, the inter-governmental
and inter-local fiscal relations,
affecting among others.
Fiscal Policy of the Philippines

 Fiscalpolicy refers to the measures

employed by gov’ts to stabilize the
economy, specifically by manipulating
the levels and allocation of taxes and
gov’t expenditures. Fiscal measures are
frequently used in tandem with monetary
policy to achieve certain goals”.
The Principal agencies tasked
with fiscal Functions:

1. Congress, especially the lower house

2. Department of Finance
3. DBM
4. COA
 Congress (Lower House)

 Responsible
for revenue and
expenditure policies
 Department of Finance
 Revenue generation and Collection
 Fund Custody
 Disbursement
 Keeping of Account
 DBM

 Review of estimates and fiscal policy studies in

close consultation with NEDA
 COA

 Conduct fund and performance audit to see to

it that expenditure are in accordance with the
appropriation law approved.
 Budgeting Concept
1. Planning - Programming Budget System (PPBS)
type
2. Zero - Base Budgeting (ZBB) type
 PBBS Type
a. Gives assurance that the budget will help
achieve desired agency result
b. Unit head defends the budget, explain its
contribution to the realization of agency goals
develops a cost projection for each program
c. Submit this to top management which reviews
the program and decides on final budget
allocation
 ZBB type
a. the agency justifies the entire appropriation request for
the fiscal year as if the program are entirely new,
instead of justifying only the increase requested above
the previous year’s appropriation.
b. The agency is obligated to defend all programs every
year and rank these in forms of priority using the ratio
between cost and benefit criteria.
c. Provides opportunity for top management to re-
evaluate the need for on-going programs, compare
these with the proposal and the prioritized for
implementation.
 New Policy Guidelines for
Budgeting
Agency programs will be supportive of the identified priority areas.
1. Modernization of the Agriculture sector to augment farmers
income, bolster production and attain food security
2. Improvement of the quality of basic social services like health and
sanitation, nutrition, education, social welfare and housing
3. Acceleration of countryside infrastructure dev’t.
4. Provision for macroeconomic stability by instilling fiscal discipline,
prudent gov’t spending and efficient revenue gereration
5. Reform in governance to make it responsive to the current
domestic and global environment.
 Income Sources

1. Tax Revenue
2. Non-Tax Revenue
 1. Tax Revenue
a. Income Tax
b. Properly Tax
c. Domestic goods and services tax
d. International trades and transaction sales tax
e. Value added tax
 2. Non – Tax Revenue
a. Operating and Service income
b. Income from public enterprices and
investments
c. Grants
d. Borrowings