Patterns of Philippine Expenditures

Ronald Reagan T. Alonzo MPA Student BULACAN STATE UNIVERSITY

Expenditure system is the

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

The Developmental Problems of Developing Countries

1. Third world Nations are confronted by numerous, interrelated problems
Western economic percept may not be applicable to Third World countries/Developing countries social structure of extreme class disparities and extreme poverty

2. Capital Accumulation
low capital & investment - not enough jobs - less productive labour force - level of income is low

3. Inadequacy of Revenues
low revenue performance and low tax capacity Debt trap

Philippine Public Expenditures Policies

Redistribution of Income and Wealth and Balanced Development Availability of governmental services to areas or sectors where public goods and services are insufficient or not available Economic Development Jobs/ Availability of employmen t Allocation of fund to economic services Infrastructur e Food production Stability Market externalitie s Distribution of employment and income Maintenance and improvement of the domestic peace and order Countryside Development Regional developme nt Availability of employmen t

Classification of Philippine Public Expenditures

1. Level of Government a) National Government b) Local Government

2. Nature of Expense
a) Current Expenditures

Personal Services ii. Maintenance and Operating Expenses b) Capital Expenditures 3. Functional Categories a) Economic Development/ Services b) Social Development c) National Defense d) General Government/ Public Services e) Debt Services
i.

4. Type of Funds a) General Fund b) Special Account-General Fund c) Bond Fund 5. Organizational Units, i.e, by Department and Governmental Agencies

Table 1. An Evaluation of the Income and Expenditures For the Year 1997 - 2012 (In Milion Pesos) Year
1997 1998 1999 2000

Total Revenues
471,843 462,515 478,502 514,762

Total Expenditures
470,279 512,496 590,160 648,974

Surplus (Deficit)

Philippine President

1,564 Fidel Ramos -49,981 Joseph Estrada -111,658 Joseph Estrada -134,212 Joseph Estrada

2001
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

567,481
578,406 639,737 706,718 816,159 979,638 1,136,560 1,202,905 1,123,211 1,207,926 1,359,942 1,534,932

714,504
789,147 839,605 893,775 962,937 1,044,429 1,149,001 1,271,022 1,421,743 1,522,384 1,557,696 1,777,759

-147,023 Gloria Macapagal-Arroyo

-210,741 Gloria Macapagal-Arroyo -199,868 Gloria Macapagal-Arroyo -187,057 Gloria Macapagal-Arroyo -146,778 Gloria Macapagal-Arroyo -64,791 Gloria Macapagal-Arroyo -12,441 Gloria Macapagal-Arroyo -68,117 Gloria Macapagal-Arroyo -298,532 Gloria Macapagal-Arroyo -314,458 Benigno Aquino III -197,754 Benigno Aquino III -242,827 Benigno Aquino III

Philippine Revenue and Expenditure Patterns (1997-2012)

2000000

1800000

1600000

1400000

In million pesos

1200000

1000000

Year Total Revenues Total Expenditures

800000

Linear (Total Expenditures )

600000

400000

200000

0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Year

Allocation of Government Expenditure (2000-2012)

Allotment to LGUS Tax Expenditures Interest Payments Subsidy Equity

Net Lending

Recommendations:
PUBLIC-PRIVATE PARTNERSHIP

CONDITIONAL CASH TRANSFERS (CCT)

ENACTMENT OF LAWS (Fiscal Responsibility Bill)

THANK YOU!