Department of Finance (Philippines)

The Philippines' Department of Finance (DOF) (Fil-ipino: Kagawaran ng Pananalapi) is the executive depart-ment of the Philippine government responsible for theformulation, institutionalization and administration of fis-cal policies, management of the financial resources of thegovernment, supervision of the revenue operations of alllocal government units, the review, approval and manage-ment of all public sector debt, and the rationalization, pri-vatization and public accountability of corporations andassets owned, controlled or acquired by the government.

1 History

TheDepartment of Finance was established onMarch 17,1897, at the same time that the Revolutionary Govern-ment was founded in Naic, Cavite. General BaldomeroAguinaldo was appointed Director of Finance by Gen-eral Emilio Aguinaldo. The Finance Director became theSecretary of the Treasury under the first constitutional re-publican government, the Biak-na-Bato Republic.In 1901, the Department of Finance and Justice wasformally organized by virtue of an act passed by theCivil Service Commission, which was headed byWilliamHoward Taft. Gregorio Araneta was the first Filipinoappointed Secretary of Justice and Finance. In 1916,through Reorganization Act No. 2666 of the PhilippineLegislature, the Department of Finance and Justice wassplit into two independent departments.In 1936, DOF functions relative to the formulation andpreparation of the Government’s budget were transferredto the newly created Budget Commission. The prepa-ration of income and resource estimates remained withthe Department. In 1949, the Central Bank of thePhilippines was established, Secretary of Finance MiguelCuaderno relinquishes the Finance portfolio to Pio Pe-drosa to enable him to serve as Governor of the CentralBank.In 1970, Minister Cesar E. A. Virata, concurrently PrimeMinister, was appointed Secretary. In 1974, with theadoption of the parliamentary form of government, theDepartment was changed to a Ministry.In the 1980s, as government policy turned increas-ingly interventionist in the economy, the Ministry be-came the voice of caution. It spearheaded the creationof inter-agency committees to rationalize the otherwisefree-for-all system of allocating government resources.The Investment Coordination Committee (ICC) was cre-

ated to rationalize government investments, the Govern-ment Corporate Monitoring and Coordinating Commit-tee (GCMCC) to reform the government corporate sectorand the Fiscal to reverse the proliferation of the fiscal in-centives.In 1987, the Ministry of Finance was reverted to a De-partment following the ratification of the 1987 Consti-tution which provided for a presidential form of govern-ment. Accordingly, the Department was reorganized andits organizational structure, distribution of powers andfunctions, and coordination mechanisms were stream-lined. In 1988, the Value Added Tax was introduced andreplaced a complicated sales tax structure.Through the Department’s policies, which resulted insound fiscal and monetary conditions, the Philippines washailed as “Asia’s Newest Tiger” by various internationalcredit institutions and in 1997, the National Governmentrecorded a budget surplus for the third consecutive year,and the public sector generated its fiscal surplus since thesector started to be monitored in 1985.In 2004, the Japan Credit Rating Agency (JCRA) main-tained its credit rating of “BBB” for the Philippines’ long-term foreign currency and domestic currency long-termsenior debts for the government’s ability to manage itsdeficit andmacro fundamentals. The rating is two notcheshigher than those of non-Asian rating agencies such asMoody’s, Standard and Poor’s, and Fitch.

2 List of the Secretaries of the De-partment of Finance

Main article: Secretary of Finance (Philippines)

3 Offices

3.1 Bureaus

• Bureau of Internal Revenue (BIR)

• Bureau of Customs (BOC)

• Bureau of the Treasury (BTr)

• Bureau of Local Government Finance (BLGF)

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2 6 EXTERNAL LINKS

3.2 Offices

• Privatization and Management Office (PMO)

3.3 Agencies and Corporations

• Insurance Commission (IC)

• National Tax Research Center (NTRC)

• Central Board of Assessment Appeal (CBAA)

• Philippine Deposit Insurance Corporation (PDIC)

• Philippine Export-Import Credit Agency(PHILEXIM)

• Government Service Insurance System (GSIS)

• Social Security System (SSS)

• Public Estates Authority (PEA)

• Cooperative Development Authority (CDA)

4 Regional Offices

5 References[1] “GAA 2015” (PDF). DBM. Retrieved 22 January 2015.

6 External links• Department of Finance Philippines website

Coordinates: 14°33′41″N 120°59′14″E / 14.561466°N120.987244°E

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