Patterns of Philippine Expenditures

Prepared by:Gabiana, Marie Lou

Expenditure system is the government’s fiscal arm in producing, allocating and distributing social goods and services.

The Developmental Problems of Developing Countries

1. Third world Nations are confronted by numerous, interrelated problems Western 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 low3. Inadequacy of Revenues

low revenue performance and low tax capacity “Debt trap”

Philippine Expenditure Policies

Classification of Philippine Public Expenditures

1. Level of Governmenta) National Governmentb) Local Government

2. Nature of Expensea) Current Expenditures

i. Personal Servicesii. Maintenance and Operating Expenses

b) Capital Expenditures3. Functional Categories

a) Economic Development/ Servicesb) Social Developmentc) National Defensed) General Government/ Public Servicese) Debt Services

4. Type of Fundsa) General Fundb) Special Account-General Fundc) Bond Fund

5. Organizational Units, i.e, by Department and Governmental Agencies

Source: Rep. Of the Phil. Department of Finance

Patterns of Philippine Revenue and Expenditure (1986-2009)

Cory’s Administration

(1986-1992)

Ave. Overall deficit= -

24,310.5714

Ave. % GDP=-2.76%

Ramos’ Administration

(1992-1998)

Ave. Overall

deficit(1992,1993,1998)= -

12,548.4286

Ave. Overall surplus(1994-

1997)= 5,025.42857

Ave. % GDP=-0.37%

Erap’s

Administration

(1998-2001)

Ave. Overall

deficit=-

110,718.75

Ave. % GDP=

-3.43%

Arroyo’s Administration

(2001-2009)

Ave. Overall deficit=-148,372

Ave. %GDP=-2.34%

Issue:by Sheila Crisostomo (The Philippine Star), April 23, 2010

Namfrel asks Comelec to publish poll automation expensesExpenditures for Automated Election System (AES) have reached P10 billion which includes:• P7.2 B for the lease of 82,200 precinct count optical (PCOS)scan

machines from Smartmatic-TIM• P243 M for 77,000 ballot boxes awarded to Smartmatic w/out bidding• P28 M for 80,000 units of handheld portable ultraviolet lamps• P75.8 M for 720,000 bottles of indelible ink awarded to Texas

Resources Corp.• P499.1 M contract for trucking and delivery services for official

ballots also awarded to Smartmatic• P519 M contract given to Smartmatic for the transport of ballot boxes

w/ PCOS machines to polling centers• P1.5 B to Unison Joint Venture for the cleansing of computerized

voters list• P2.1 M to Copylandia Office System Corp. for 9 units of copying

machines• P174.2 M to Noah’s Paper Mills for storage and working area logistics

-End-