PUBLIC FISCA ADMINISTRATION AND
MANAGEMENT
Cynthia V. Tabangay
TAX COLLECTION AND ADMINISTRATION OF
COLLECTING AGENTS
• What are the major sources of funds to finance the
national government?
1.revenues from both tax and non-tax sources
2.Borrowings from both domestic and foreign sources
3.Withdrawals from available cash balances
Bureau of Internal Revenue (BIR)
• The powers and duties of the BIR shall comprehend the
assessment and collection of all national internal revenue
taxes, fees, and charges, the enforcement of all
forfeitures, penalties and fines connected therewith,
including the execution of judgments in all cases decided
in its favor by the Court of Tax Appeals and the ordinary
courts.
Bureau of Internal Revenue (BIR)
• Of the two functions of the BIR, assessment and
collection, the effectiveness of collection depends on the
quality of the assessment done by the enforcement
officers/assigned for such duties.
• Assessment functions may be:
1.Voluntary or self-assessment
2.Enforced assessment
The BIR Commissioner
• Authority to Conduct Inventory-taking, Surveillance and to
Prescribe Presumptive Gross Sales and Receipts.
• Authority to Terminate Taxable Period.
• Authority of the Commissioner to Prescribe Real Property
Values.
• Authority of the Commissioner to Inquire into Bank
Deposit Accounts and Other Related information held by
Financial Institutions.
The BIR Commissioner
• Authority to Accredit and Register Tax Agents.
• Authority of the Commissioner to Prescribe Additional
Procedural or Documentary Requirements.
• Authority of the Commissioner to Delegate Power.
• Duty of the Commissioner to Ensure the Provision and
Distribution of Forms, Receipts, Certificates, and
Appliances, and the Acknowledgment of Payment of
Taxes.
The BIR Commissioner
• Submission of Report and Pertinent Information by the
Commissioner:
– Submission of Pertinent Information to Congress.
– Report to Oversight Committee.
Internal Revenue Districts
• With the approval of the Secretary of Finance, the
Commissioner shall divide the Philippines into such
number of revenue districts as may from time to time be
required for administrative purposes. Each of these
districts shall be under the supervision of a Revenue
District Officer.
Revenue Regional Director
• (a) Implement laws, policies, plans, programs, rules and
regulations of the department or agencies in the regional
area;
• (b) Administer and enforce internal revenue laws, and
rules and regulations, including the assessment and
collection of all internal revenue taxes, charges and fees;
• (c) Issue Letters of authority for the examination of
taxpayers within the region;
• (d) Provide economical, efficient and effective service to
the people in the area;
Revenue Regional Director
• (e) Coordinate with regional offices or other departments,
bureaus and agencies in the area;
• (f) Coordinate with local government units in the area;
• (g) Exercise control and supervision over the officers and
employees within the region; and
• (h) Perform such other functions as may be provided by
law and as may be delegated by the Commissioner.
Agents and Deputies for Collection of National
Internal Revenue Taxes
• a) The Commissioner of Customs and his subordinates
with respect to the collection of national internal revenue
taxes on imported goods;
• b) The head of the appropriate government office and his
subordinates with respect to the collection of energy tax;
and
• c) Banks duly accredited by the Commissioner with
respect to receipt of payments internal revenue taxes
authorized to be made thru banks.
• Authority of a Revenue Officer - examine taxpayers
within the jurisdiction of the district in order to collect the
correct amount of tax, or to recommend the assessment
of any deficiency tax due in the same manner that the
same manner that the said acts could have been
performed by the Revenue Regional Director himself.
• Authority of Officers to Administer Oaths and Take
Testimony.
• Authority of Internal Revenue Officers to Make
Arrests and Seizures.
Local Government Units (LGU)
• - Sharing of taxing powers between the National
Government and the LGUs, and among LGU units
• - Solicit on tax rates and structures
• - Monitoring and approval of budgets, tax ordinances and
other fiscal measures
HANDLING BUDGET DEFICIT
• Budget deficit is defined as the difference between what
the government spends and what it collects in taxes in a
given period. Budget deficits have to be financed either
through local or foreign borrowing. Either way,
government borrowing has its consequences, one of
which is the increase in interest rates. This in turn act as
disincentives for private firms to borrow and invest in
profitable ventures, thereby slowing down the economy’s
growth.
Deficit and debt: soulmates?
THEORY OF BUDGETING
The budget is the master plan of the government. It brings
together estimates of anticipated revenues and proposed
expenditures, implying the schedule of activities to be
undertaken and the means of financing those activities.
(Philip E. Taylor, 1961)
Budget can be viewed from three frames of reference:
1. Budget as an economic process
2. Budget as a political process
3. Budget as an administrative process
What is a government budget?
In general, a government budget is the financial plan of a
government for a given period, usually for a fiscal year,
which shows what its resources are, and how they will be
generated and used over the fiscal period. The budget is
the government's key instrument for promoting its socio-
economic objectives.
The government budget also refers to the income,
expenditures and sources of borrowings of the National
Government (NG) that are used to achieve national
objectives, strategies and programs.
What is a government budget?
Section 22, Article VII of the Constitution states that:
"The President shall submit to the Congress within 30 days
from the opening of every regular session, as the basis of
the general appropriation bill (GAB), a budget of
expenditures and sources of financing including receipts
from existing and proposed revenue measures."
What is a government budget?
The National Government budget (also known simply as
the budget) refers to the totality of the budgets of various
departments of the national government including the NG
support to Local Government Units (LGUs) and
Government-Owned and Controlled Corporations (GOCCs).
It is what the national government plans to spend for its
programs and projects, and the sources of what it projects
to have as funds, either from revenues or from borrowings
with which to finance such expenditures.
The sources of appropriations of the annual
budget are:
1)new general appropriations legislated by Congress for
every budget year under the General Appropriations Act
(GAA); and
2) existing appropriations previously authorized by
Congress.
Existing or continuing appropriations are those which
have been previously enacted by Congress and which
continue to remain valid as an appropriation authority for
the expenditure of public funds.
There are two type of existing appropriations :
1. Continuing appropriations
2. Automatic appropriations
The "one-fund" concept is the policy enunciated through
PD 1177 which requires that all income and revenues of the
government must accrue to the General Fund and thus can
be freely allocated to fund programs and projects of
government as prioritized.
Total resource budgeting is a concept adopted by the
present budgeting system which requires the preparation of
the national government within the framework of the total
impact of all government entities on the national economy.
When expenditures exceed revenues, the government
incurs a deficit which may result in the following
situations:
•The government borrows money either from foreign
sources or from the domestic capital market which
increases the debt stock of the NG and its debt servicing
requirements;
•The government borrows money from the Bangko Sentral
ng Pilipinas; or,
•The government withdraws funds from its cash balances in
the Treasury
What is the planning-programming-budgeting system
(PPBS)?
The planning-programming-budgeting system (PPBS) is a
concept that stresses the importance of establishing a
strong linkage between planning and budgeting. It
emanates from the policy of the government to formulate
and implement a national budget that is an instrument of
national development, reflective of national objectives,
strategies and plans.
