Dealing With Fiscal Administration

8/12/2019 Dealing With Fiscal Administration

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The Commission on Audit (COA), as an independent

constitutional commission has the following powers andfunctions


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ACCOUNTING MONITORING:COA With its primary function to examine, audit, and settle all

accounts and expenditures of the Philippine government, COAhas the following responsibilities:

1. Examines,audits, and settlesall accounts pertaining to therevenue and receipts of, and expenditures or uses of funds andproperty owned or held in trust by, or pertaining to, thegovernment;

2. Promulgates accounting and auditing rules and regulations

including those for the prevention and disallowance ofirregular, unnecessary, excessive, extravagant orunconscionable expenditures, or uses of government funds andproperties;

3. Submits annual reports to the President and the Congress onthe financial condition and operation of the government;


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ACCOUNTING MONITORING:COA4. Recommends measures to improve the efficiency

and effectiveness of government operations;

5. Keeps the general accounts of government andpreserve the vouchers and supporting paperspertaining thereto;

6. Decides any case brought before it within 60 days;

7. Performs such other duties and functions as may beprovided by law


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ACCOUNTING MONITORING:COAJanuary 2002 COA introduced NGAS(New

Government Accounting System), the supreme auditauthority of the Philippines designed to:

Simplify govtaccounting;

Improve monitoring public sector performance

efficiency, and; Increase transparency of government audits through

civil society involvement.


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ACCOUNTING MONITORING:COA New features of the NGAS:

From cash- to accrual-based accounting; Introduced modifications to the obligation-accounting

techniques;

Introduced valuation accounting for receivables and

fixed assets; Full computerization of govtaccounting.


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ACCOUNTING MONITORING:COA Procurement

January 2003 GPRA (Government Procurement Reform Act)was ratified

Permanent changes to the manual procurement system wereput in place;

Mandated govtprocurement via electronic means;

Created the GPPB (GovtProcurement Policy Board) whichprotects national interest in matters of public procurement,provides procurement rules and regulations, overseesimplementation of procurement process, recommendschanges to the GPRA (if necessary).


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2004 The govtadopted an aggressive and bold agenda that

seeks to bring down the fiscal deficit over the medium term.


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FISCAL STRATEGY AND NEW

MEASURES IN THE PHILIPPINES The plan centers on achieving a balanced budget in

2010 through:

Improved tax administration;

New tax measures;

Privatization and restructuring of GOCCs (specially in

the power sector); Rationalized bureaucracy;

Improved public dept and expenditure management.


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MEASURES IN THE PHILIPPINES Priority areas:

Revival of tax collection Restoring financial viability of the power sector


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MEASURES IN THE PHILIPPINES Proposed tax measures:

2-step VAT increase;

Tax on telecommunications;

Adoption of gross income taxation;

Rationalization of fiscal incentives;

Indexation of sin taxes;

General tax amnesty;

Lateral attrition for tax collection agencies;

Adjustment in excise tax on petroleum products.


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MEASURES IN THE PHILIPPINES The sin tax, amended December 2004, increased the

rate of excise tax on alcohol and tobacco products

Excise tax / sin tax taxes on goods that are consideredas vices

Lifted exemption of taxes on imported tobacco andalcohol products (except for Duty Free products)


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MEASURES IN THE PHILIPPINESVAT (Value Added Tax) Law, May 2005

E-VAT (Expanded VAT) lifted exemption from VAT of :

some professionals; Natural gas;

Coal;

Petroleum products

Increased VAT rate by 2%.


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MEASURES IN THE PHILIPPINES Lateral Attrition Law (RA 9395) , 2005 boost tax

administration in BIR and BOC by:

Providing performance incentives

Improving performance evaluation system


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The BIR, as provider of 80% of the RPs tax revenue, an

aggressive program was implemented to improve taxcollection


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IMPROVEMENTS IN TAX

COLLECTION The following programs are implemented:

1. RUN AFTER TAX EVADERS (RATE) tax cases are filed

against high profile personalities, at a rate of one (1) case perweek;

2. RUN AFTER THE SMUGGLERS (RATS) tax cases arefiled against high profile smugglers, at a rate of one (1) casefiled seizure of cargo every two (2) weeks;

3. REVENUE INTERGRITY PROTECTION SERVICE (RIPS)conduct of lifestyle checks against officers & employees ofthe BIR and BOC, at a rate of at least one (1) case every two(2) weeks.


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DEBT AND EXPENDITURE

MANAGEMENT The Government has drafted a fiscal responsibility bill

that proposes a prudent debt and expendituremanagement strategy.

This bill will impose a debt cap (as percentage of GDP)to reduce consolidated non-financial public sector andNG debt to manageable levels and provide for a three-year Executive-Legislative Medium-Term Fiscal Accord

which should improve predictability of funding forpriority government programs.

A Debt and Risk Management Office is beingestablished in the DOF.


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Dealing With Fiscal Administration