PUBLIC FINANCE
Course Orientation
MPA 1 – SUMMER TERM (2020)
CHMSC – TALISAY CAMPUS
Course Objectives
• By the end of the course students should be able to:
– Using some economic models, to describe the role of
governments in running the economy;
– Have a good understanding of the theoretical models and
empirical techniques used in modern public economics •
– Be familiar with academic articles and reports (required
readings) covered in the course
– Be able to critique existing research, with the aim of
identifying promising areas for future research (including
your own research)
Summary of Course Outline
• 1. Economic background of Fiscal Management;
• 2. Legal Framework of Public Finance in Philippines;
• 3. The Concept of Public Finance;
• 4. Taxation and the Train Law;
• 5. Philippine Budgeting System;
• 6. The Local Government Financing Method and Revenue sources /IRA
computation (the local government code)
• 7. Accounting and Auditing (COA Rules);
• 8. Public Procurement System (bids and awards system)
9. Fiscal Reform and Policies (PDP 2017-2022) Overall Strategic
Framework ;
10. Governance Strategies to improve fiscal management.
COURSE CONTENT/OUTLINE
• 1. Introduction /Backgrounder
- (MACRO VS. MICRO ECONOMIC POLICY);
– ROLE OF THE GOVERNMENT IN THE ECONOMY
2. THE CONSTITUTIONAL AND LEGAL BASIS OF
PUBLIC FINANCE IN THE PHILIPPINES;
- THE GOVERNMENT’S FISCAL POLICY AND
FISCAL PERFORMANCE
- Concept of public finance, importance,
Private vs. public finance
COURSE OUTLINE
• 3. THE CONCEPT OF PUBLIC FINANCE;
– Public finance cycle/ Fiscal policy
– Generation of public revenues and expenditures
• 4. TAXATION (THE CONCEPT OF TAXATION)
- Major classes of tax revenues (direct vs.
indirect tax
-(SPECIAL PROVISIONS OF RA 10963 – THE
TRAIN LAW VS. THE OLD TAX SYSTEM)
COURSE OUTLINE
• 4. PHILIPPINE BUDGETING SYSTEM
a) -THE PHILIPPINE FISCAL INSTITUTIONS (San Juan, R)
b) (THE 2020 PHILIPPINE BUDGET – THE
BUDGETING PROCESS/ elements, preparation,
presentation, authorization, execution, budget
accountability, public borrowing)
c) (THE BOTTOM UP BUDGETING PROGRAM)
d) (Deficit Financing)
e) Public Borrowings
f) Public Expenditures
Course Outline
• 5. THE LOCAL GOVERNMENT FINANCING AND
EXPENDITURE/ HOW IS INTERNAL REVENUE
ALLOTMENT (IRA) COMPUTED?
• 6. ACCOUNTING AND AUDITING (COA RULES)
• CITIZENS PARTICIPATORY AUDIT
• Public Liability and Government corruption
• Accountability
• 7. PUBLIC PROCUREMENT SYSTEM
• BIDS AND AWARDS COMMITTEE?
COURSE OUTLINE
8. PHILIPPINE DEVELOPMENT PLAN (2017-2022)
OVERALL STRATEGIC FRAMEWORK
9. GOVERNANCE STRATEGIES TO IMPROVE FISCAL
MANAGEMENT;
– Budget reform bill
– E-government bill
– Comprehensive Tax Reform bill
– Freedom of Information bill
– Proposed Philippine Public financial Accountability Act
(how this law can help cement PFM Reforms)
Assessment
• Regular submission. Minimum of two-page reaction paper as assignment
from a topic discussed in the class for a specific period; (due date is
before the class meeting begins)
• FINAL PAPER. The assignment will involve not more than 3000 words case
study of the participants’ choosing either of his or her organisation or any
government agency of choice examining specified aspects of financial
management.
• Exam material. Exam questions may cover everything discussed in class,
in the problem sets, or on the Canvas discussion board, as well as
everything in the relevant chapters of the textbook (we will not cover all
the chapters of the book; relevant chapters of the textbook are listed in
the tentative lecture schedule at the end of this syllabus), and
supplemental documents I may distribute. Problem set questions, as well
as questions I will ask in class to guide our discussion, are designed to be
representative of what you may expect during the exams.
Class Readings &Case Studies
• The Road to Fiscal Transparency in the Philippines (Capistrano, F. 2017);
• Case on FMP of Marikina City
• Case on FMP of Guinangayan
• Public Financial Management Assessment in the Philippines
• Local Public Finance in the Philippines: In search of Autonomy with
Accountability (Manasan, Rosario 2004)
• Public Financial Management Assessment Tool for Local Government Units
(PFMAT for LGUs” by DBM and EU
• PFM Strategy Implementation Support and Accountability Assessment
(2016);
• The Challenge of Local Government Financing in Developing countries
(UN Habitat)
• Guinigundo, Diwa ‘Fiscal policy, public debt management and government
bond markets: the case for the Philippines”
• Manila Consensus on PFM Partnering to Strengthen PFM for Effective
States
Grading System
• Midterm Examination- 40%
• Reaction papers - 20%
• Seatworks - 20%
• Assignments - 20% =100 x 50%
Midterm period = 50%
• Submission of Final Term
Requirement = 50%
FINAL GRADE = 100%
References
• Cruz-Sta. Rita et al “Towards an Informed Citizens Participation in Local
Governance”Sourcebook on Local Public Finance
• Manuel, Thelma C. (2017) “Governance and Fiscal Management: The Philippine Context”
NEDA Report on the Sub-regional Policy Dialogue on Economic and Social Survey of Asia and the
Pacific: Governance and Fiscal Management.
• Capistrano, Francis (2017) “The Road to Fiscal Transparency in the Philippines” International
Budget partnership (IBP)
• Perez, Rakim (2015) “Public Finance”
• Secretary of Budget and Management (2018)”Public Financial Management Assessment in
the Philippine” Expanding Private participation in Infrastructure Program, Subprogram 2 (RRP
PHI 48458 -003)
• Manasan, Rosario G. (2004) “Local Public Finance in the Philippines: In Search of Autonomy
with Accountability “ a discussion paper series 2004, PIDS, NEDA
• Department of Budget and Management (2012) “Public Financial Management Assessment
Tool for Local Government Units (PFMAT for LGUs” DBM and EU
• Proposed Philippine Public financial Accountability Act (how this law can help cement PFM
Reforms)
• Lazo, Ricardo (2011)”Principles and practices of Public Administration in the Philippines
Class Activity (pre-test)
• Submit a mind map about ‘Public Finance”
• Make some discussion about your mind map.
• Which institutions are involve in the fiscal
policy formulation?
