Public Finance

Cycle
 Public
Finance
￮ refers to the income and outgo of
the government’s finances in the
pursuit of national objectives
￮ 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
 Formulatio
n of Fiscal
Policy

Generation of
Accountability revenue from
taxation
Public Finance
Cycle

Public Expenditures
Borrowings of Funds
3
Fiscal Policy
￮ Refers to policies on taxation, and
other revenue, expenditure, and
borrowings, which are intended to
promote the stabilisation and
development of the economy

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 Formulatio
n of Fiscal
Policy

Generation of
Accountability revenue from
taxation
Public Finance
Cycle

Public Expenditures
Borrowings of Funds
5
Generation of Revenue from Taxation and
Other Sources

￮ Revenue: all cash inflows of the

national government treasury which
are collected to support government
expenditures
￮ Tax: compulsory contribution
mandated by law and exacted by the
government for a public purpose

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 Formulatio
n of Fiscal
Policy

Generation of
Accountability revenue from
taxation
Public Finance
Cycle

Public Expenditures
Borrowings of Funds
7
Expenditure of Funds through the National
Budget

￮ 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 Budget.
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Planning and
Budgeting
￮ This phase covers the estimation,
determination and translation of government
revenues, priorities and activities
￮ Government entities prepare their budgets for
the year to be submitted to the Department of
Budget and Management (DBM) for review.
￮ The DBM then consolidate all budgets to
form a government-wide budgeting
estimate, the ‘NATIONAL BUDGET’.
￮ This shall be submitted to the president
for final approval.

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Budget Execution and
Operation
￮ Covers the implementation of the
various operational aspect of the
budget, such as release of allotments
to the various agencies, the continuing
review of the fiscal position, and other
related activities.

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Budget
Accountability
￮ Involves the evaluation of
expenditures and performance against
the predetermined budget
￮ Obligation incurred, personnel used
and work accomplished are compared
with the plans and goals of various
agencies submitted at the time their
respective budget is prepared.

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Budget
Accountability
￮ Accomplished by the heads of the
various agencies who review the
performance of their respective
agency, and the Commission on Audit
(COA) who examines the operations of
the agency

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 Formulatio
n of Fiscal
Policy

Generation of
Accountability revenue from
taxation
Public Finance
Cycle

Public Expenditures
Borrowings of Funds
1
6
Public 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 finance various government
projects and activities.

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 Formulatio
n of Fiscal
Policy

Generation of
Accountability revenue from
taxation
Public Finance
Cycle

Public Expenditures
Borrowings of Funds
1
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Accountability
￮ Functions of the Commission on Audit:
￮ The Commission has the power,
authority and duty to examine, audit
and settle all accounts and
expenditures of the funds and
properties of the Philippine
government.
￮ Towards that end, it has the exclusive
authority to define the scope,
techniques and methods of its auditing
and examination procedures.
￮ It also may prevent and disallow
irregular, unnecessary, excessive, 1
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extravagant or unconscionable
Accountability
￮ Accountability in the government
budget cycle, accountability is laid
down by the need for government
agencies and departments submit to
submit quarterly and monthly income
statements; statements of allotment,
obligations and balances along with
other financial reports and documents
for audit, a formal process whereby
the authenticity, accuracy and
reliability of financial accounts or
transactions are checked and
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Thank you!

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