University of the Philippines

Tacloban City College

ACTIVITY ANSWER SHEET

Chapter I - Overview of Public Fiscal Administration ( Week 2 - Aug 26-31)

Name: Rusty Paller Student ID:202353049

Degree: Master of Management (PM) Level: First Semester, AY 2024-2025
Subject: RS Public Fiscal Management Activity: Assignment 1
Instructor: Maria Rebecca Roldan-Dorado Date Submitted: September 4, 2024

1) Comparison and Contrast

Aspect Public Fiscal Administration Public Finance
The study and management of a
The implementation, management, and
government’s income, expenditures, and
oversight of government financial
Definition debt load through various sources of
resources, including budgeting, spending,
revenue like taxes and the issuance of
and auditing.
bonds.
Focuses on the processes involved in
Encompasses the broader economic
managing public funds, including
impact of government activities, including
Scope planning, organizing, directing, and
how government revenue and spending
controlling financial activities within the
affect the economy at large.
public sector.
Ensures that public funds are used Analyzes and optimizes government
Objective efficiently and effectively, following legal revenue collection, expenditure, and debt
and regulatory frameworks. to achieve economic stability and growth.
Primarily involves public officials and Used by economists, policymakers, and
Application government agencies responsible for financial analysts to assess the overall
financial management and oversight. economic health of a country.

Aspect Fiscal Policy Monetary Policy

Government policies related to taxation, Central bank policies aimed at regulating
Definition government spending, and borrowing to the money supply and interest rates to
influence the economy. achieve economic stability.

Taxation, government spending, Interest rates, reserve requirements, and

Tools
subsidies, and public debt management. open market operations.
Stimulate economic growth, control Control inflation, manage employment
Objective inflation, reduce unemployment, and levels, stabilize the currency, and ensure
stabilize the economy. overall economic stability.
Implemented by central banks, such as
Typically determined by the government
Authority the Bangko Sentral ng Pilipinas (BSP) in
or legislative bodies.
the Philippines.

Aspect Fiscal Policy Fiscal Administration

The execution and management of
Government decisions regarding taxation,
government fiscal policy, including
Definition spending, and borrowing to influence the
budgeting, accounting, auditing, and
economy.
financial reporting.
Involves the day-to-day management and
Focuses on the strategic aspects of
oversight of public funds and ensuring
Scope revenue and expenditure to influence
they are used according to policy
economic conditions.
guidelines.
Achieve macroeconomic goals such as Ensure efficient, transparent, and
Objective economic growth, full employment, and accountable use of public funds in
price stability. accordance with laws and regulations.
 Formulated by policymakers, often Executed by public officials and financial
Application involving the Ministry of Finance or managers within government agencies
equivalent governmental body. and departments.

Aspect Fiscal Policy in Developing Countries Fiscal Policy in Developed Countries

Typically focuses on maintaining

Often prioritizes poverty reduction,
economic stability, managing public debt,
Focus infrastructure development, and basic
and addressing issues like aging
social services.
populations or technological innovation.
Limited fiscal space, reliance on external Managing slower economic growth,
Challenges aid, high levels of informality, and weaker dealing with aging infrastructure, and
institutions. adjusting to demographic changes.
Primarily reliant on a broad and well-
Revenue Heavily reliant on taxes, foreign aid, and
established tax base, along with
Sources loans; may have limited tax base.
sophisticated financial markets.
Often faces challenges with Typically has more stable and lower-risk
Debt
unsustainable debt levels, leading to debt management strategies, with access
Management
higher risks of default. to global financial markets.

2) Fiscal Activities of the Philippine Government

Fiscal Activity Description
The Philippine government collects revenues through various taxes (income tax,
Revenue
VAT, excise tax), tariffs, fees, and other non-tax revenues like dividends from
Collection
government-owned corporations.
The government prepares and implements an annual national budget, allocating
Budgeting funds to various departments and projects based on priority areas such as
infrastructure, health, and education.
Government spending is directed toward public services, infrastructure projects,
Public
social services, and defense. This includes both operating expenses and capital
Expenditure
outlays.

The government manages its public debt through domestic and foreign borrowing,
Debt
ensuring that the debt level remains sustainable while financing development
Management
projects and budget deficits.

Fiscal Planning
The government formulates fiscal policies that guide taxation, spending, and
and Policy
borrowing decisions, aiming to achieve economic stability and growth.
Formulation
Regular audits are conducted by the Commission on Audit (COA) to ensure
Audit and
transparency, accountability, and proper use of public funds in accordance with laws
Accountability
and regulations.

Intergovernmen Coordination and financial transfers between the national and local governments,
tal Fiscal including internal revenue allotments (IRA) to ensure equitable distribution of
Relations resources.

The government provides financial assistance and subsidies to vulnerable sectors,

Subsidies and
such as conditional cash transfers (Pantawid Pamilyang Pilipino Program - 4Ps) and
Transfers
agricultural subsidies.

Public-Private The government engages in partnerships with the private sector to fund and
Partnerships implement large-scale infrastructure projects, reducing the fiscal burden on public
(PPP) funds.