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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FISCAL STRATEGY AND NEW
MEASURES IN THE PHILIPPINES Priority areas:
Revival of tax collection Restoring financial viability of the power sector
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FISCAL STRATEGY AND NEW
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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FISCAL STRATEGY AND NEW
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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FISCAL STRATEGY AND NEW
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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FISCAL STRATEGY AND NEW
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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