LYM RELAMPAGOS ONGOYMaster in Public Administration

University of MindanaoMarch 2017

I. INTRODUCTION: THE PHILIPPINE FISCAL FRAMEWORK

II. TAXATIONA. Sources of TaxationB. Limitations on the Power of TaxationC. The Legal Process of Taxation

III. BUDGETINGA. Nature of BudgetingB. Budget FormulationC. Constitutional ProvisionsD. Restrictions of Budgeting

IV. ACCOUNTING AND AUDITINGA. DefinitionsB. Legal Framework

THE CONSTITUTIONAL AND LEGAL BASIS OF PUBLIC FINANCE IN THE PHILIPPINES

THE PHILIPPINE FISCAL FRAMEWORK

is embodied in the Constitution and laws enacted by the legislative branch which is composed of the:

INTRODUCTION

INTRODUCTIONMEANING OFCONSTITUTIONAL

SOURCE: https://www.google.com.ph/?gfe_rd=cr&ei=tZbjWM3xBK6L8QeIi6PgDw#q=constitutional&*

INTRODUCTION

WHAT DOES LEGAL BASIS TERM MEAN?

SOURCE: https://answers.yahoo.com/question/index?qid=20081009162339AA0TN7F

Something that is legal –acceptable by the law

Decision relating to a case matter have basis of the law that govern to a country.

The legal and constitutional basis ofeach major component of Philippinepublic finance includes:

Taxation Budgeting Accounting and Budgeting

INTRODUCTION

Taxation The most important revenue

generation measure of the government

TAXATION

Aptly considered one of the three fundamental powers of the state

Is deemed bestowed to the State upon creation

It is inherent in every State, it need not expressly conferred by the Constitution

A. Sources of TaxationTAXATION

Constitution Laws or statutes

Republic Acts (RA), Presidential Decree (PD), Batas Pambansa (BP),Executive Order (EO), NIRC, TCC

Administrative Rules and Regulations Administrative Rulings and Tax Lax

Opinions Judicial Decisions

B. Limitations on Power of Taxation

TAXATION

1. Inherent Limitations

a) Public purposeb) Non-delegation of taxing power

1) Delegation to the President2) Delegation to LGUs3) Delegation to Autonomous Regions4) Delegation to Administrative Agencies

They are not embodied in the law nor in the Constitution.

B. Limitations on Power of Taxation

TAXATION

1. Inherent Limitations

c. Exemption of government entities from taxation

d. Limitations of Territorial Jurisdictione. International comity

They are not embodied in the law nor in the Constitution.

B. Limitations on Power of Taxation

TAXATION

2. Constitutional Limitations

a) Due Process of Lawb) Equal Protection of Lawc) Uniformity and Equality

1) Uniformity of Operation Throughout the Tax Unit

2) Equality of Burdend) Non-Imprisonment of Debt

Are those contained in the Constitution, including the Bill of Rights.

B. Limitations on Power of Taxation

TAXATION

1. Constitutional Limitations

e) Non-Impairment of Contractual Obligationf) Non-Infringement of Religious Freedomg) Non-Appropriation for Religious Purposesh) Non-Taxation of Religious or Charitable

Entities and Propertiesi) Non-Taxation of Non-Stock, Non-Profit

Educational Institutionj) Other Constitutional Limitations

Are those contained in the Constitution, including the Bill of Rights.

C. The Legal Process of Taxation

TAXATION

SOURCE: https://www.slideshare.net/fimportado/tax-law-in-the-philippines

WHAT IS BUDGETING?

BUDGET

In general, a government budget is thefinancial plan of a government for a givenperiod, usually for a fiscal year, whichshows what its resources are, and howthey will be generated and used over thefiscal period.

The budget is the government's keyinstrument for promoting its socio-economic objectives.

BUDGET

BUDGET

defined as the financial plan of the government

It specifies the programs, projects, services and activities for which specific amounts of the public funds are proposed and allocated

translates the program of government into monetary terms

A. Nature of Budgeting

BUDGET

BUDGET

B. Budget Formulation

SOURCE: https://www.slideshare.net/jobitonio/dpa-102-philippine-administrative-system

BUDGET

BUDGET

C. Constitutional Provisions Section 24, Article VI, which states that all appropriations,

revenue or tariff bills increase of the public debt, bills of local application and private bills shall originate in the House of Representatives, but the Senate may propose or concur with amendments

Section 25 (1), Article VI, states that the Congress may not increase the appropriations recommended by the President for the operation of the government as specified in the budget. The form, content, and manner of preparation of the budget shall be prescribed by law.

Section 25 (2), Article VI states that no provision or enactment shall be embraced in the General Appropriations Bill unless it relates specifically to some particular appropriation therein. Any such provision or enactment shall be limited in its operation to the appropriations to which it relates.

BUDGET

BUDGET

D. Restrictions on BudgetingThe President has exclusive right to propose a budget.Congress can only reduce or reallocate appropriations in

the proposed budget.The President can use a line-item veto.The previous year’s budget is automatically “re-

enacted” if the budget is not passed prior to the start of the fiscal year.

The President can impose restrictions on the disbursement of funds appropriated by Congress.

The President can augment any appropriations from savings in other appropriations.

Highest allocation to EducationSeparation of Church and StateSpecial Funds are for Special funds only.

ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

Accounting is defined as "the art of recording, classifying and summarizing, in a significant manner and in terms of money, transactions and events which are, in part at least of a financial character and interpreting the results thereof." Its primary function is to measure and communicate financial and business data as it gives meaning to financial reports by explaining the results of transactions in terms of profit and loss and current financial positions.

ACCOUNTING AND AUDITING

ACCOUNTING AND AUDITING

Auditing on the other hand is the examinationof information by a third party than the prepareror user with the intention of establishing itsreliability, and the reporting of the results of thisexamination with the expectation of increasingthe usefulness of the information of the user.

Justification of Accounting and Auditing (COA)

ACCOUNTING AND AUDITING

The Commission has the power, authority andduty to examine, audit and settle all accountsand expenditures of the funds and properties ofthe Philippine government. Towards that end, ithas the exclusive authority to define the scope,techniques and methods of its auditing andexamination procedures. It also may preventand disallow irregular, unnecessary, excessive,extravagant or unconscionable expenditures, oruses of government funds and properties

Constitutional Provision and Legal Basis

ACCOUNTING AND AUDITING

Article IX (D), Section 2 of the 1987 Constitutionis the prime basis of accounting and auditingof public finance.

The Audit Code of the Philippines

(P.D. 1445)

Leonor M. Briones, Philippine Public Fiscal Administration, Fiscal Administration Foundation Inc. Mandaluyong, 1996

http://hrlibrary.umn.edu/research/Philippines/PHILIPPINE%20CONSTITUTION.pdf

http://tax71.blogspot.com/2009/06/limitations-on-power-of-taxation.html

https://www.google.com.ph/?gfe_rd=cr&ei=tZbjWM3xBK6L8QeIi6PgDw#q=constitutional&*

https://answers.yahoo.com/question/index?qid=20081009162339AA0TN7F

https://www.slideshare.net/jobitonio/dpa-102-philippine-administrative-system

https://www.slideshare.net/raixe808/the-constitutional-and-legal-basis-of-public-finance

References

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