Public Fiscal Administration
Introduction of Local Fiscal Administration
Organization of Local Fiscal Administration
Realities, Policies and Goals of Public Fiscal
Administration
By: EXEQUIEL K. SALCEDO III
This presentation will discuss
introduction to local fiscal
administration, elements and scope, legal
basis, institutional framework and
organization, realities, policies and goals
of public fiscal administration in the
Philippines.
Learning Objectives
•
Discuss Local Fiscal Administration as defined by authors.
•
Enumerate the elements and scope of LFA.
•
Discuss the Legal Basis of LFA.
•
Present the institutional framework, organization and
goals of LFA.
•
Briefly discuss the NGAs and institution with supervisory
power over LGUs.
•
Briefly discuss the policy of LFA and
•
Generate insights on realities of PFA .
Local Fiscal Administration
• Formulation
• Implementation
• Evaluation
• Taxation
• Revenue Administration
• Resources allocation
• budgeting and
expenditure
• Public borrowing and
debt management
• Accounting and auditing
Policies and
Decisions on
-Briones (1996:2)
Local Fiscal Administration
Refers to conduct and
management of financial affairs
and operations of provinces,
cities, municipalities and
barangays. Ursal (1984:1)
FISCAL POLICY ENVIRONMENT
(Internal Environment)
Structures
Systems
Process
Officials/
Personnel
FISCAL POLICY ENVIRONMENT
Source: Celestino, Malvar, Zipagan (1998:4)
Scope of Local Fiscal Administration
1. Revenue Generation
•
All aspect of local taxation;
•
Borrowing and its management;
•
Operation of public enterprise;
•
Revenue enhancement measures;
•
Revenue Planning, forecasting & accounting
Source: Celestino, Malvar, Zipagan (1998:6)
Revenue Allocation and Utilization
2.
•
Budgeting system and process, including
the linkage of planning and budgeting,
expenditure planning, expenditure
allocation and expenditure monitoring;
•
Accounting and auditing of expenditures;
Source: Celestino, Malvar, Zipagan (1998:6)
Other Aspects
3.
•
Property and supply management;
•
Internal control which cut across all fiscal
functions and;
•
Other related matters like central grant and
allotment, organization for LFA and
computerization of fiscal operations/system
Source: Celestino, Malvar, Zipagan (1998:6)
Legal Basis for LFA
Local Government Units, by virtue of 1973
and 1987 constitution, RA 7160 or Local
Government Code of 1991 and Laws from
Nat’l Agencies with Supervisory power over
LGUs grants power and authority to
exercise the functions of fiscal
administration
INSTITUTIONAL FRAMEWORK OF LOCAL FINANCE
Congress of the
Philippines
PRESIDENT
Supreme Court
& Lower Court
Constitutional Offices
COA
Highly
Urbanized
Cities
Provinces
Cities and
Municipalities
Barangays
Source: Cuaresma & Lago (1996:27)
DOF
DBM
DOJ
Organization of Local Fiscal Administration and Goals
Office of the Local
C H I E F EXECU TI VE
GOVERNOR/MAYOR
Public funds is
managed in
accordance to LAW
and REGULATION
Office of the
Administrator
LOCAL
SANGGUNIAN
Public funds is
safeguarded from LOST
AND WASTAGE
Office of Local
Accountant
Office of Local
Assessor
Office of Local
Treasurer
Office of Local
Budget Officer
Accounting &
Internal Audit
Appraise & Assess Real
Property for Taxation
Revenue collection
& fund
disbursement
Consolidate and
evaluate budget
proposals
Office of Local
Planning& Dev’t
Coordinator
Formulate & sustain
dev’t plans/programs &
policy
In order to ensure SUBSTANTIAL, ECONOMICAL and
EFFICIENT use of resources in the operations of the Gov’t
NGAs with supervisory powers over LGU
Formulate revenue policies to ensure funding of gov’t
programs that will promote welfare, accelerate economic
growth and stability.
Promote the sound, efficient and effective management
and utilization of gov’t resources.
Examine, audit and settle all accounts, properties and
expenditure of the government.
Source: DOF,DBM,COA website
NGAs with supervisory powers over LGU
Strengthening local gov’t capability aimed
towards the effective delivery of basic services
to the citizenry.
provide administrative, advisory, consultative
and other support services to the President in
the latter’s exercise of their powers and functions
as Head of State and of the Executive Branch.
Source: DILG, OP website
O T H ER INSTITUTIONS
Influences the direction of local autonomy
through legislation that would either augment or
withdraw the resources generated by local gov’t.
Rule the constitutionality or legality of tax
ordinances and other revenue measures of local
government.
Source: Cuaresma & Lago (1996:29-30)
Venue for tax appeals, especially when all
administrative remedies had been
exhausted by the tax payer.
Rule the constitutionality or legality of
tax ordinances and other revenue
measures of local government.
Source: Cuaresma & Lago (1996:29-30)
The Province
First level of hierarchical structure of
local governments consist of a cluster
of municipalities and component
cities headed by elected governor as
head and chief executive of the
provincial government
Source: Cuaresma & Lago (1996:37)
Provincial Appointive Officials/ Office
O
Mandatory
Optional
• Sec. S . Panglalawigan . Gen. Serv. O
• Population O.
• Treasurer
.Legal Officer
• E N R Officer
• Assessor
. Administrator
• Cooperatives O.
• Accountant
. Budget Officer
• Architect
• Engineer
. Agriculturist
• IO
• Health Officer
. Veterinarian
• Economic
• SWD Officer
. Planning & Dev’t Coor
Source: Celestino, Malvar, Zipagan (1998:39)
Enterprise
The City
Serves as a general purpose government
for the coordination and delivery of basic,
regular and direct services and effective
governance of inhabitants within its
territorial jurisdiction. Can be classified
as Independent Component City, Highly
Urbanized City and Component City
Source: Cuaresma & Lago (1996:41)
City Appointive Officials/ Office
O
Mandatory
Optional
• Sec. S Panglungsod
. Gen. Serv. O
• Population O.
• Treasurer
.Legal Officer
• E N R Officer
• Assessor
. Administrator
• Cooperatives O.
• Accountant
. Budget Officer
• Architect
• Engineer
. Civil Registrar
• IO
• Health Officer
. Veterinarian
• Agriculturist
• SWD Officer
. Planning & Dev’t Coor
Source: Celestino, Malvar, Zipagan (1998:44)
The Municipality
Second tier in the structure of local
government made up of cluster of barangays
and serve as a general- purpose government for
the coordination and delivery of basic, regular
and direct services as well as the effective
governance of inhabitants within its territorial
jurisdiction.
Source: Cuaresma & Lago (1996:43)
Municipal Appointive Officials/ Office
O
Mandatory
Optional
• Sec. S Bayan
. Budget Officer
• Administrator
• Treasurer
. Accountant
• Legal Officer
• Assessor
. Engineer
• Health Officer
. Civil Registrar
• Planning & Dev’t Coor
Source: Celestino, Malvar, Zipagan (1998:44)
• Agriculturist
• E N R Officer
• SWD Officer
• Architect
.IO
Barangay - basic political unit of the state.
Serves as the planning and implementing unit of gov’t policies,
plans, programs, projects and activities in the community.
Barangay Appointive Officials
Mandatory
• Secretary
• Treasurer
• Lupong Tagapamayapa
Sou rce: Celestino, Malvar, Zipagan (1998:47)
Optional
• Community
Brigade
Policies
Fiscal policy is the use of government revenue collection
and expenditure to influence the economy.
Monetary policy is the process by which the monetary
authority of a country, controls either the cost of very
short-term borrowing or the monetary base, often
targeting an inflation rate or interest rate to ensure price
stability and general trust in the currency.
Source: Wikepedia
REALITIES
INSIGHTS SHARING
& Class Discussion
Realities
•
LGUs remained mendicants for funds depending
so much on central government.
•
Lacks of/ inadequate coordination and
cooperation among offices involved.
•
Adoption of new technology to improve
efficiency in operations.
•
Understaffing, mismatch and lack of career
system.
Source: Cuaresma & Lago (1996:11&15)
THANK Y
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