Patterns of Philippine Expenditure
Patterns of Philippine Expenditure
Patterns of Philippine Expenditure
Philippine
Expenditure
E
xpenditure system is the
government’s fiscal arm in
producing, allocating and
distributing social goods and
services.
The Developmental Problems of
Developing Countries
Inadequacy of revenue
Philippine Expenditure Policies
Economic development.
Stability
Countryside development
Classification of Philippine Public
Expenditures
Level of Nature of
Government Expense
• National • Current
Government Operating
• Local Expenditures
Government • Capital
Expenditures
Classification of Philippine Public
Expenditures
Functional
Type of Funds
Categories
• Economic • General Fund
Development / • Special Fund
Services • Bond Fund
• Social Development/
Services
• Defense
• General Public
Services
• Debt Services
Patterns of Governmental Expenditure
According to Percent Growth and Percent of
Gross Domestic Product (GDP)
35
30
25
20
% of GDP (%)
Percent Growth (%)
15
10
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Expenditure Patterns According to Nature of
Expenses
1,600,000,000
1,400,000,000
1,200,000,000
1,000,000,000
800,000,000
2010 (Actual)
2011 (Adjusted)
600,000,000
2012 (Proposed)
400,000,000
200,000,000
0
Current Operating Capital Outlays
Expenditures (MOOE, PS)
Expenditure Patterns of the National
Government According to Function
700,000
600,000
500,000
Economic Services
400,000
Social Services
Defense
300,000 General Public Services
Debt Services
200,000
100,000
0
2010 2011 2012 (Proposed)
Conclusions
There is a constant increase in public expenditures caused by
continuous expansion and improvement of governments function and
services.
1,400,000
Total Income
1,200,000
Total Expenditures
Surplus (Deficit)
1,000,000
800,000
600,000
400,000
200,000
0
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
-200,000
-400,000
Fidel V. Ramos (1992 – 1997)
Fidel V. Ramos (1992 – 1997)
Increasing financial
deficits occur during
the Estrada
administration due to
decrease in tax effort
and repayment of the
Ramos
administration’s debt
to contractors and
suppliers
Gloria Macapagal – Arroyo
(2001 – 2009)
Gloria Macapagal – Arroyo
(2001 – 2009)
Income and expenditure
are both increasing
and there are still
large fiscal deficits.
This occurrence is
attributed to
weakening of tax
effort and rising of
debt services due to
peso depreciation.
Benigno S. Aquino III
(2010 – 2011)
Benigno S. Aquino III
(2010 – 2011)
There is a significant
decrease on the deficit
since there is a
strengthening campaign
on tax collection. Fiscal
discipline to state
owned firms and anti-
corruption campaign
during Aquino’s
administration could be
credited.
Thank You!