Politics and Fiscal Administration by Luigi Armero on Prezi
fiscal administration - Download as Powerpoint Presentation .ppt), PDF File .pdf ), environment governing intergovernmental, and inter-local fiscal relations. Fiscal Incentives Administration. 25 . The National Government's fiscal deficit of P billion or recovery, sovereign debt turmoil in the euro zone, political. PUBLIC FISCAL ADMINISTRATION defined Refers to the place within a Political System Public Fiscal Administration and Political Process . Price Index – an average of prices of commodities in relation to their prices.
It is the percentage of people who are either employed or actively seeking for employment to the total labor force population or those at the ages of 18 to National government subsidy National government subsidy is the cumulative sum of the Internal Revenue Allotment IRAand all other appropriations given by the national government to the local government units.
It is determined by summing up those of the component municipalities of each province. Operational expenditure Operational expenditure refers to the total expenses incurred by all of the component municipalities each of the province.
Professionally attended birth rate Professionally attended birth rate is part of the Philippine Health Statistics and is being regularly monitored by the Department of Health DOH [ 4 ] in an annual basis.
It is the percentage of the number births attended by medical professionals such as doctors, nurses, and midwives to the total number of births. The data used in this study were those of the years to Socio-economic development Socio-economic development of the provinces in this study is measured in terms of poverty incidence, attended mortality rate, professionally attended birth rate, and labor force participation rate. Total assets Total assets are the balance sheet account that represents the value of all assets.
For this study it is the cumulative total of all assets of the component municipalities of each province. In other words, fiscal policy should foster pro-poor growth.
Achieving this outcome requires measures that assure the pro-poor distribution of that increment. First, while macroeconomic instability usually harms the poor, policy frameworks aimed exclusively to securing such stability do not necessarily benefit the poor.
Second, an option sometimes neglected involves giving greater emphasis to fiscal expansion through increasing public investments. While such fiscal expansion may generate government deficits, there is no longer a consensus that these are necessarily inflationary.
UNDP supports forms of public investment that can provide a more long-term, durable basis for human development and poverty reduction. This implies capital accumulation and technological innovation that can deliver lasting gains to the poor. Third, inequality has been rising throughout developing and industrial countries since the s. The reasons for rising inequality are still being debated though.
Skill-based technological change seems to explain part of the phenomenon within countries. The weakening of labour unions and labour legislation, such as on minimum wages, has also contributed to widening disparities, particularly in middle-income developing countries.
The policy implication of this rise in inequality is that fiscal measures are necessary to generate growth which is propoor. Much of the focus of traditional pro-poor fiscal analysis has been on expenditure switching policies that alter the pattern of government spending in favour of pro-poor public goods.
Overview of Public Fiscal Administration
However, budget reallocations are not sufficient to have a substantial impact on poverty when the distribution of productive assets is highly unequal. In these circumstances, policies that directly redistribute assets, such as land reform or construction of low-income housing, are essential initiatives.
The above theoretical premise of the UNDP [ 6 ] conforms to the notion of Musgrave as cited in Briones [ 7 ] that development is expensive. Therefore, in order to translate the objective of eliminating extreme poverty, financing is highly needed.
Public Administration and Politics
Additionally, to the development perspective of two of the most renowned authorities in the field of Public Administration and Governance, the Nigros Felix and Lloyd as cited in Leveriza [ 8 ] which advocates that sound financial position and administration is a fundamental requirement to national development.
Conceptual Framework Presented in Figure 1 is the conceptual framework showing the variables of the study. The fiscal position is the independent variable with the parameters national government subsidy, income, operating expenditures, total assets, public debts, and budget surplus.
The dependent variable is the socio-economic development status of the provinces measured in terms of poverty incidence, attended mortality rate, professionally attended birth rate, and labor force participation rate. The conceptual paradigm showing the relationship of the variables of the study. Hypothesis of the Study Following are the alternative hypotheses of the study.
Ha1 hypothesis There is a significant relationship between the independent variables fiscal position measured in terms of national government subsidy, income, operating expenditures, total assets, public debts, and budget surplus, and the dependent variables socio-economic development of the provinces measured in terms of poverty incidence, attended mortality rate, professionally attended birth rate, and labor force participation rate. Ha2 hypothesis The independent variables fiscal position measured in terms of national government subsidy, income, operating expenditures, total assets, public debts, and budget surplus have significant influences on the socio-economic development of the provinces measured in terms of poverty incidence, attended mortality rate, professionally attended birth rate, and labor force participation rate; therefore, and the R2 values of the regression models and the beta coefficients of the independent variables are significantly greater than zero.
Methodology Research design This is a descriptive and predictive quantitative research, which used data in the form of numbers and statistics.
Moreover, it is only applied between the variables that are tested and proven to have significant positive or negative correlation because according to Williams et, al. Sources of data The study relied on secondary sources of data which are the official gazettes of the concern government agencies that are being published in their respective websites for public information and use.
These government organizations include among others, the Commission on Audit COA [ 11 ] for the data on fiscal position of the provinces; the Philippine Statistical Authority PSA for the poverty and labor force statistics; and the Department of Health DOH [ 45 ] for the Philippine Health Statistics particularly attended mortality rate and professionally attended birth rate. Statistical treatment Pearson product-moment correlation was employed to determine the degree of association between the independent and the dependent variables.
And multiple linear regression analysis was used to determine the degree of predictive influence of the various independent variables which are the fiscal position parameters to the dependent variables socio-economic development.
Specifically, the said regression analysis was only done on variables tested and proven to have significant positive and negative correlations; these are between fiscal position and poverty incidence, between fiscal position and attended mortality rate, and between fiscal position and professionally attended birth rate.
Results And Discussion Relationship between fiscal position and socio-economic development of the provinces Presented in Table 1 are the results of the test of relationship between fiscal position and socio-economic development of the provinces using the Pearson Product-Moment Correlation otherwise known as Pearson r. As can be gleaned from the Table 1, all of the parameters of fiscal position which are national government subsidy, income, operational expenditure, total assets, public debts, and budget surplus are found to be with strong negative correlation with poverty incidence as indicated by the r values In most instances, these are undertaken simultaneously and in close coordination.
Feudalism Public finance raises and spends revenues for the functions of the state. The primitive societies were on a survival basis only.
What did people hunt or fish was immediately consumed. Then fights over territories or tribes, the captives became slaves, and the societies moved on to slave societies. The early public finance institutions of these slave societies served as foundations for modern institutions and practices. Ancient public finance provided some of the basic instruments of public financial management, i.
Medieval public finance further refined these concepts. It also introduced some basic tools like accounting and auditing. Capitalist Socialist 14 Objectives of Public Finance The beginnings of public finance started from the creation of the states which were created to protect the welfare of man. The state was composed of: Public finance was supposed to finance the activities of government. The following briefing will go to the details of the development of western public finance institutions.
Such institutions can still be recognized in the public finance structures of LDCs at present. This is why it is important to understand their origin, and those theories had the greatest impact on LDCs with mixed economies such as the Philippines. Budgeting; The Slave Societies 1. Ancient Finance Expenditures on: Ancient public finance was used for the activities of the state, those activities included: Ancient Finance Revenues from: The Slave Societies Lootings and tributes from conquered peoples; War chests money ; Fines; Direct taxes imposed on non-citizens; Donations or gifts from wealthy citizens; Production of agriculture and mines.
To finance the public functions, the State had to impose and collect revenues. The sources of revenue were from: Ancients governments had little need for direct taxes since they levied tributes on conquered peoples. Ancient Greece did not levy taxed on its citizens without consent of the people, except the emergency cases like calamities. Ancient Finance Features of Budgeting: The Slave Societies Budgeting was needed to allocate public revenues for specific purposes or functions.
The Slave Societies Public borrowings and debt management were unheard of. The ancient state was almost self-sufficient and public expenditures were borne by the citizens and non-citizens without asking for loans. The Slave Societies The principle of independent state audit was accepted in ancient Greek states.
The audit was primarily concerned with the maintenance and inspection of financial records. Ancient audit activities were performed by executive-judicial branch like Ombudsman. The Slave Societies Summary: Public finance in ancient time was still limited in scope and activity. This was because the functions of the slave state were limited to some basic activities only.
Medieval Public Finance Feudalism A. During Middle Ages, the weakening of the monarchy central authority resulted in the system of feudalism which had the most significant impact on medieval public finance. Feudalism was the system of economic relationship based on land tenure among the king, the lords, and the vassals. Public borrowings were quite limited because of uncertain tenure of the king.
Public finance in Middle Ages: Revenue raising and expenditures were at 2 levels - the king central government and the feudal lords. Economy centered on land: Most taxes were imposed on land-based activities. Taxation emerged as the major source of public revenue. The Rise of Central Government Post-feudal era The growing cost of government forced the post-feudal states to raise more revenues.
The return of revenue powers to central government led to the expansion of traditional taxes and the introduction of new taxes. Most taxes followed old system but with expansion in scope and form. New taxes introduced due to changing conditions, e.
Accounting and audit institutions developed. Beginnings of Capitalism Since 15th century, the feudal system was gradually shattered by a rising tide of individualism. Factories were built, technology advances appeared, trade increased, goods and services expanded. A strong central government forged. During that time, to make a nation-state strong became economic concerns.
Three schools of thought were evolved: It expanded the use of fiscal instruments tax, budget to guide economic activities towards prosperity. The concern of the mercantile state to preserve and increase its wealth by active export and corresponding restriction on imports through high tariffs. It showed the real economic prosperity of a nation laid on development of agriculture and industry, not on acquisition of gold only.
Like mercantilism, it was concerned with how to make the State powerful and wealthy. Cameralists encouraged the use of public finance institutions like taxation to create a prosperous economy. Physiocrats agreed that the only way to institute a stable system of taxation was to base it on a sector which produced a net profit or surplus. To ensure the certainty of revenues, they argued all taxes should be abolished and a single direct tax on the land-rent income generated from agricultural production be instituted.
To them, the agricultural surplus was the best foundation for a lasting system of taxation.