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Public finance
is the study of the role of the government in the
economy.
according to Dalton It is concerned with the
income and expenditure of public authorities and
with the adjustment of one to another
Public Revenue,
2.
Public Expenditure,
financial resources
Regressive Taxation
Inefficient tax administration-Inefficiency
Limited external sources of public financing
Tax incentives
Borrowing
Significance
Taxation
Protection of Infant Industries
Provision Public Goods
Equity
Subsidies and grants
Optimum utilization of resources
Economic Planning
Providing employment opportunities
Market failures
Contributions to economy
Efficient allocation of resources
Distribution of income
Macroeconomics stabilization
Fiscal Policy
Recession
a general slowdown of economy.
*The slowdown is noted from macroeconomics
indicators GDP and GNP.
Depression
deeper than recession
FOREIGN
BORROWINGS
DEFINITION
Amount a country owes to
other countries, either directly
as result of government-togovernment loans or indirectly because
of a negative balance of trade.
HISTORY
In 1961, departing from the nationalist policies of predecessor
Carlos Garcia, Diosdado Macapagal embraced the virtues of
free enterprise, and opened the door to foreign investment,
gearing up the economy for global competition. In return, the
United States, the International Monetary Fund (IMF) and the
World Bank (WB) offered the government huge loans. It was
thought that foreign capital could be a catalyst of
development. That embrace, however, was probably our entry
into the debt trap. The pressure of the IMF and the WB was
already being felt. When he became president in 1965,
Ferdinand Marcos continued Macapagals economic
liberalization policies. The outcome was that the total
external debt rose from $277.7 million at the beginning of
Macapagals presidency in 1961 to $840.2 million at the end of
Marcos first term in 1969.
EFFECTS OF FOREIGN
BORROWINGS TO THE
COUNTRY
the infrastructure development in the country from the period 1968 to the
Public
Public
Expenditures
Expenditures
Public
Public
Expenditures
Expenditures
Classification of Public
Expenditure
Government Expenditure
Expenditure
Revenue Expenditure
Capital Expenditure
Incurred
on
civil Incurred on building durable
administration (i.e., police, jails
assets
like
building
and judiciary), defense forces,
multipurpose river projects,
public health and education.
highways, steel plants etc., and
buying
machinery
and
equipment
Transfer payments
Transfer
Transfer Payments
Payments and
Expenditure
Expenditure on
on Goods and
Services
Services
Developmental
Developmental and
and
Non-Development
Non-Development
Expenditure
Expenditure
Developmental Expenditure
Expenditures which
economic growth.
Non-Development Expenditure
35.34%
40.00%
34.21%
35.72%
35.00%
31.99%
30.00%
24.48%
18.58%
25.00% 22.20%
21.91%
16.87%
17.87%
17.67%
17.55%
20.00%
15.00%
7.86%
10.00%
6.22%
4.52%
5.00%
0.00%
2011
2012
2013
Economic Services
Social Services
Defense
National
National Govt
Govt
Expenditures
Expenditures
http://data.gov.ph/infographics/budget
Taxation
Taxation
Taxation
Taxation is the imposition of financial charges or other levies,
upon a taxpayer by a state such that failure to pay is punishable
by law.
It is a mode by which government make exactions for revenue in
order to support their existence and carry out their legitimate
objectives (Tax Law and Jurisprudence by Justice Vitug,
2000).
Taxes are the lifeblood of the government, without which, it
cannot subsist.
History
Ancient Egypt
Bible
Rome
England
History
Buwis is paid for protection given by the Datus, Only Cheiftains
are exempted. Non-payment is punishable.
Tributo is a payment to the king of Spain by the early Filipinos.
Payment of rice, chickens, gold, textile or forced labor, Servicio Y
Polo.
Four Rs of Taxation
Revenue-Taxes earned by the government are used to fund
different projects.
Redistribution-The transferring of wealth from rich
section to the poor section.
Re-pricing-Taxes are levied to address externalities.
Representation-rulers tax citizens, and citizens demand
accountability from their rulers.
R.A. 8424
The principal taxes levied include: taxes on income and gains, taxes on
transactions, and taxes on property.
The laws governing taxation in the Philippines are contained within the
National Internal Revenue Code. This code underwent substantial revision
with passage of the Tax Reform Act of 1997. This law took effect on January
1, 1998.
Taxation is administered through the Bureau of Internal Revenue which comes
under the Department of Finance.
The chief executive of the Bureau of Internal Revenue is the Commissioner
who has exclusive and original jurisdiction to interpret the provisions of the code
and other tax laws. The commissioner also has the powers to decide disputed
assessments, grant refunds of taxes, fees and other charges and penalties, modify
payment of any internal revenue tax and abate or cancel a tax liability. Taxpayers
can appeal decisions by the Commissioner directly to the Court of Tax Appeals.
Taxes
Capital Gains Tax is a tax imposed on the gains presumed to have been realized
by the seller from capital assets located in the Philippines.
Documentary Stamp Tax is a tax on documents, instruments, loan agreements
and papers evidencing the acceptance, assignment, sale or transfer of an obligation,
rights, or property incident thereto.
Percentage Tax is a tax imposed on persons or entities who sell or lease goods,
properties or services in the course of trade or business whose gross annual
sales or receipts do not exceed P550,000 and are not VAT-registered.
Value-Added Tax is a business tax imposed and collected from the seller in the
course of trade or business on every sale of properties (real or personal) lease of
goods or properties (real or personal) or vendors of services. It is an indirect tax,
thus, it can be passed on to the buyer.
Withholding Tax Income tax withheld from employees' wages and paid directly
to the government by the employer. A tax levied on income (interest and dividends)
from securitie.
Kim S. Jacinto-Henares
Commissioner of Internal Revenue
Room 511, BIR National Office Building, BIR Road,
Diliman, Quezon City
kim.jacinto-henares@bir.gov.ph
922-3293/981-7121/981-7124