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Patterns of Philippine

Expenditures

Ronald Reagan T. Alonzo

MPA Student

BULACAN STATE UNIVERSITY

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Expenditure system is the

governments fiscal arm inproducing, allocating anddistributing social goods andservices.

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The Developmental Problems of

Developing Countries

1. Third world Nations are confronted by numerous, interrelated

problemsWestern economic percept may not be applicable to Third World

countries/Developing countries

social structure of extreme class disparities and extreme poverty

2. Capital Accumulation low capital & investment - not enough jobs - less productive labour

force - level of income is low

3. Inadequacy of Revenues low revenue performance and low tax capacity

Debt trap

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Redistributionof Income and

Wealth andBalanced

Development

Availability of

governmentalservices to areasor sectors wherepublic goods and

services areinsufficient or not

available

EconomicDevelopment

Jobs/Availability

ofemploymen

tAllocation of

fund toeconomicservices

Infrastructur

e

Foodproduction

Stability

Marketexternalitie

s

Distribution ofemploymentand income

Maintenanceand

improvement ofthe domesticpeace and

order

CountrysideDevelopment

Regionaldevelopme

nt

Availabilityofemploymen

t

Philippine Public Expenditures Policies

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1. Level of Government

a) National Government

b) Local Government

2. Nature of Expense

a) Current Expenditures

i. Personal Services

ii. Maintenance andOperating Expenses

b) Capital Expenditures

3. Functional Categories

a) Economic Development/

Servicesb) Social Development

c) National Defense

d) General Government/

Public Services

e) Debt Services

Classification of Philippine Public

Expenditures4. Type of Funds

a) General Fund

b) Special Account-General

Fund

c) Bond Fund

5. Organizational Units, i.e, by

Department and GovernmentalAgencies

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Table 1.

An Evaluation of the Income and Expenditures

For the Year 1997 - 2012

(In Milion Pesos)

Year Total Revenues Total Expenditures Surplus (Deficit) Philippine President

1997 471,843 470,279 1,564 Fidel Ramos

1998 462,515 512,496 -49,981 Joseph Estrada

1999 478,502 590,160 -111,658 Joseph Estrada

2000 514,762 648,974 -134,212 Joseph Estrada

2001 567,481 714,504 -147,023 Gloria Macapagal-Arroyo

2002 578,406 789,147 -210,741 Gloria Macapagal-Arroyo

2003 639,737 839,605 -199,868 Gloria Macapagal-Arroyo

2004 706,718 893,775 -187,057 Gloria Macapagal-Arroyo

2005 816,159 962,937 -146,778 Gloria Macapagal-Arroyo

2006 979,638 1,044,429 -64,791 Gloria Macapagal-Arroyo2007 1,136,560 1,149,001 -12,441 Gloria Macapagal-Arroyo

2008 1,202,905 1,271,022 -68,117 Gloria Macapagal-Arroyo

2009 1,123,211 1,421,743 -298,532 Gloria Macapagal-Arroyo

2010 1,207,926 1,522,384 -314,458 Benigno Aquino III

2011 1,359,942 1,557,696 -197,754 Benigno Aquino III

2012 1,534,932 1,777,759 -242,827 Benigno Aquino III

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0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

2000000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Inmillionpeso

s

Year

Philippine Revenue and Expenditure Patterns(1997-2012)

Year

Total Revenues

Total Expenditures

Linear (Total Expenditures )

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Allocation of GovernmentExpenditure (2000-2012)

Allotment toLGUS

TaxExpenditures

InterestPayments

Subsidy

Equity

Net Lending

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Recommendations:

PUBLIC-PRIVATE PARTNERSHIP

CONDITIONAL CASH TRANSFERS(CCT)

ENACTMENT OF LAWS (FiscalResponsibility Bill)

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THANK YOU!