FINMAN E1 Flashcards
(163 cards)
1
Q
generally considered to be an action plan for spending in the future according to the income expected.
A
budget
2
Q
must therefore calculate the total amount of money they wish to spend on schools, hospitals, roads and salaries throughout the year.
A
government
3
Q
arguably one of the most important public documents, as it is a translation of a country’s national development goals into annual spending plans.
A
national budget
4
Q
are the medium through which policies are funded and executed and, in turn, activities to support selected priorities are delivered
A
budget
5
Q
The _________, __________, and __________of the budget all require technical understanding of the PFM process.
A
development, implementation and reporting
6
Q
T/F
In addition, as budget outcomes also may not depend on political as economic factors, it is also important to understand the politics of the budget cycle.
A
FALSE, it depends!
7
Q
is also referred to as the government’s budget.
A
national budget
8
Q
It is a plan for how the government spends taxpayers money, and how it pays for its activities, its borrowings, and the repayment of its borrowings. More technically, it is the estimated schedule of expenditures and sources of financing.
A
national budget
9
Q
In general, a _________ is the financial plan of a government for a given period, usually for a fiscal year.
A
government budget
10
Q
It shows what its resources are, and how they will be generated and used over the ____ period.
A
fiscal
11
Q
is the government’s key instrument for promoting its socio-economic objectives.
A
budget
12
Q
The government budget also refers to the ____,______,_________ of the National Government (NG). These resources are used to achieve its national objectives, strategies, and programs.
A
income, expenditures, and sources of borrowings
13
Q
The ___________ known simply as the budget, refers to the totality of the budgets of various departments of the national government.
A
National Government budget
14
Q
National Government budget includes the NG support to ___________ and _________. It is what the national government plans to spend on its programs and projects.
A
Local Government Units (LGUs) and Government Owned and/or Controlled Corporations (GOCCs).
15
Q
It also states the envisioned sources of its funds, either from _____________ or from ________.
A
revenues or borrowings.
16
Q
The common notion of a budget relates to its _________ side.
A
expenditure
17
Q
Purpose of a National Budget
A
As such, a budget is prepared to prescribe the funding of government’s programs and projects, following national priorities, objectives, and strategies. This is the budget’s allocation function.
18
Q
Components of A national Budget
A
resources side and the expenditures side.
19
Q
pertain to the sources of funds that will finance budgetary expenditures.
A
Budgetary resources
20
Q
budgetary resources are derived from?
A
1) Revenues or 2) Borrowings.
21
Q
the primary source of financing the budget because these are the most stable sources of funds.
A
Revenues
22
Q
T/F
Revenues consist of tax collection only
A
FALSE, tax and non-tax collections
23
Q
are obtained from repayable sources, including loans secured by the government from financial institutions and other sources internal and external, to finance development projects and/or budget support.
A
borrowings
24
Q
There are two subcategories of borrowings:
A
domestic borrowings and b) foreign borrowings.
25
The government borrows for several reasons. Name those reasons
One is to augment revenues of the government to cover all of the country's development requirements. Aside from operating expenses, it has to provide for such capital projects as roads, bridges, airports, power plants, etc. to generate economic activity.
Another reason is to cushion future needs while taking advantage of favorable market conditions.
A third reason, which is monetary in nature, is to stabilize the market by mopping up excess liquidity.
26
T/F
There are inherent advantages and disadvantages in borrowing from either domestic or foreign sources.
TRUE
26
In general, the government borrows from ________ because they are readily available, and there are no foreign exchange risks involved.
domestic sources
27
On the other hand, borrowing from _________ enables the government to take advantage of long-term loans, which are readily available abroad with lower interest rates.
foreign sources
28
T/F
However, if it takes up too large a share of domestic resources, it will not compete with local private demand for credit. This will drive up interest rates, and consequently lessen jobs
FALSE, it will compete w local
29
The disadvantage of borrowing from these sources is the risk of foreign exchange rate fluctuations. Every time the peso depreciates in value against the dollar, the debt service burden gets heavier.
foreign sources
30
T/F
In all these, it must be emphasized that the government carefully selects the capital projects to be financed from these sources. It must make certain that they would improve economic productivity and help pay back the loans.
TRUE
31
The government obtains domestic borrowings from the auction of ____________
Treasury bills, notes and bonds.
32
are short-term debt instruments issued by the National Government often reaches maturity in 52 weeks or less
Treasury bills
33
are longer-term certificates of indebtedness: their maturity extends beyond one year. They are issued depending on the needs of the market.
Treasury bonds and notes
34
are always used for a general purpose.
Domestic borrowings
35
Foreign borrowings, on the other hand, may be derived from:
(1) multilateral sources,
(2) bilateral sources,
36
where the owners of the institution are many,
multilateral sources,
37
refer to the government of another country.
bilateral sources,
38
can be obtained through loans secured from foreign financial institutions or by floating government securities in the international market.
Foreign borrowings
39
Some examples of multilateral sources are
Japan Bank for International Cooperation,
the Asian Development Bank and
the World Bank.
40
Foreign borrowings may be in the form of ______
(1) project loans (2) program loans.
41
are incurred to finance a specific project like an irrigation project or a health project. multipurpose foreign borrowings.
Project loans
42
are multipurpose foreign loans to enhance a specific sector, usually conditioned on basic reforms in certain policy areas.
Program loans
43
__________ are examples of program loans.
The Structural Adjustment Loan
and the Private Sector Financing Restructuring Loan
44
The House of representatives approves _________ 2024 national Budget.
5.768 trillion
45
allocated the highest budget of PHP924.7 billion,
Department of Education
46
allocated the budget of PHP822.2 billion.
Department of Public Works and Highways
47
The ___________ was allocated PHP306.1 billion.
Department of Health
48
pertain to education and manpower development, health, housing, and social security and welfare services.
Social Services
49
2024 Priority Sector
PHTAJ EIDSJ
1. Education
2. Public Works
3. Health
4. Interior and Local Government
5. Defense
6. Transportation
7. Social Welfare
8. Agriculture
9. Judiciary
10. Judiciary
50
is the part of economics which deals with the revenue and expenditure patterns of the government and their various effects on the economy.
Public finance
51
is the study of the economic aspects that arise in the operations of the public budget.
public finance
52
The presence of a political body that governs a given economy requires a study of public finance, regardless of whether such economy is functioning under ________, _____________, or ___________
free enterprise,
a centrally managed system or
a "mixed" type system.
53
is theoretically characterized by perfect competition in the market;
Free enterprise economy
54
is characterized by centralized state planning
centrally managed economy
55
is one in which government supplies a considerable amount of goods and services and regulates private economic activity.
mixed economy
56
the circular flow of economy
GO TO REVIEWER TO CHECK
Output Markets
Input Markets
Households
Firms
57
represent transactions between households and business firms in markets.
The upper and lower loops
58
T/F
Households do not use the income they earn from the sale of productive services to purchase the outputs of business firms.
F, they use the income
59
represents transactions between households and government and between business firms and government.
The inner loop
60
Governments purchase productive services from __________ and ____________
households and outputs of business firms.
61
These purchases are financed with _________, ____, and ______levied on persons and firms, and the inputs acquired are used to provide government services and transfers.
taxes, fees, and charges
62
relates to private wants while public finance deals with public wants.
Private finance
63
Private wants are those that can be satisfied through the mechanism of the market because their enjoyment can be made subject to ____________
price payments.
64
are those that cannot be satisfied through the working of the market because their enjoyment by any individual consumer is independent of his payment or contribution.
Public wants
65
Classification of public wants
Social wants and Merit wants
66
are wants whose satisfaction should be subject to the principle of consumer sovereignty, that
is, resources should be allocated in response to the effective demand of consumers.
social wants
67
are those that are subject to the exclusion principle and are satisfied by the market within the limits of effective demand.
merit wants
68
Major Recipients of the Budget
a. National Government Agencies (NGAs)
b. Local Government Units (LGUs).
c. Government-Owned and/or Controlled Corporations (GOCCs)
69
The 3 functions of Public Finance
The function of the allocation section,
The function of the distribution section
The function of the stabilization section
70
the provision of goods and services to satisfy public wants, may be considered the historically accepted objective of budget policy.
The function of the allocation section,
71
These are the entities which perform functions not normally undertaken by the private sector. They are wholly dependent on the government for financing its budgetary requirements. Some examples are the Department of Finance (DOF), Presidential Commission for the Urban Poor (PCUP) and the AFP.
National Government Agencies (NGAs).
72
They refer to provinces, cities, municipalities and barangays. The Province of Laguna, the City of Dagupan, the Municipality of Panabo and Barangay Cruz na Ligas are examples of it.
Local Government Units (LGUs).
73
These are stock or non-stock corporations, whether performing government or proprietary functions, which are directly chartered by special law or owned or controlled by the government directly or indirectly, through the parent corporation, to the extent of at least a majority of its outstanding capital stock or its outstanding non-capital stock.
Government-Owned and/or Controlled Corporations (GOCCs)
74
relates to the determination and attainment of a proper state income distribution.
The function of the distribution section
75
is concerned with maintaining a high level of resource utilization, that is, full employment of all factors of production and a stable value of money.
The function of the stabilization section
76
is an agency or cluster of agencies whose expenditures are directed towards a common purpose.
Sector
77
Government expenditures are classified according to the following sectors:
Economic services
Social services
Defense services
General Public services
78
pertain to the enhancement of the country's industrial and agricultural production capacities. They encompass the development of natural resources, the promotion of trade and industry, and the setting up of infrastructure and utilities. Hence, most of the activities of the Department of Trade and Industry (DTI), Department of Environment and Natural Resources (DENR), Department of Agriculture (DA), Department of Agrarian Reform (DAR), Department of Public Works and Highways (DPWH) and Department of Transportation and Communication (DOTC) fall under this sector.
Economic Services
79
pertain to education and manpower development, health, housing, and social security and welfare services. The budget of the Department of Education (DepEd), the Department of Health (DOH), the Department of Social Welfare and Development (DSWD), the Department of Labor and Employment (DOLE) and the National Housing Authority (NHA), as well as the pension for veterans, will fall under this category.
Social Services
80
refer to the strengthening of domestic security and the maintenance of peace and order. The Department of National Defenses Armed Forces of the Philippines (AFP) is under this sector.
Defense Services
81
refers to general administration, basic research and the dispensation of justice. Under this sector are the National Economic and Development Authority (NEDA) and the Department of Justice (DOJ).
National Governments Agencies
General Public Services
82
20 National Government Departments
PHTAJ TEI NSFF BELL NSET
* * 1. Public Works and Highways
* 2. Health
* 3. Transportation
* 4. Agriculture
* 5.Justice
* 6.Education
* 7. Interior And Local Government
* 8. Tourism
* 9. National Defense
* 10. Social Welfare and Development
11. Budget And Management
12. Energy
13. Finance
14. Foreign Affairs
15. Labor And Employment
16. Land Reform
17. National Economic Development Authority
18. Science And Technology
19. Trade And Industry
20. Environment and Natural Resources
83
formulates and implements an integrated program of information and developmental communication that will present the work of the Presidency.
Office of the Press Secretary
84
total of government departments
23
20 National Government Departments
The Office of the President
Office of the Press Secretary
Other Offices like the Senate, Anti-money Laundering, House of Representatives.
85
is a situation where you're forced to take new loans in order to repay your existing debt obligations. And before you know what a debt trap is, you fall into a situation where the amount of debt you owe takes a turn for the worse and spirals out of control.
Debt trap
86
establishes laws, maintain order & provide security
GOVERNMENT
87
3 powers of government
1. Police Power; - for public good or welfare
2. Power of Eminent Domain or Power of Expropriation; - For public use
3. Power of Taxation - for revenue
88
how many Covid meds wasted
P7.43-B
89
how many % of SSS funds go to the government?
50%
90
difference between DEPED and CHED
CHED is under the office of the president
DEPED - department of the PH gov't
91
where is PNP under?
DILG
Department of the Interior and Local Government
92
is the executive department of the Philippine government responsible for ensuring access to, promoting equity in, and improving the quality of basic education. It is the main agency tasked to manage and govern the Philippines.
Department of Education
93
is a government agency under the Office of the President of the Philippines. It is responsible for regulating and governing all higher education institutions and post-secondary educational programs in the country.
Commission on Higher Education
94
implements the policy of the State to continuously develop technology for ensuring the safety of all infrastructure facilities and securing for all public works and highways the highest efficiency and the most appropriate quality of construction.
Department of Public Works and Highways (DPWH)
95
the executive department of the government of the Philippines responsible for ensuring access to basic public health services by all Filipinos through the provision of quality health care, the regulation of all health services and products.
Department of Health
96
is the executive department of the Philippine government responsible for promoting peace and order, ensuring public safety and strengthening local government capability aimed towards the effective delivery of basic services to the citizenry.
Department of the Interior and Local Government, abbreviated as DILG
97
what are under DILG
National Police Commission
Bureau of Fire Protection
DILG assists LGU to effectively and efficiently deliver services to their constituents
98
is the executive department of the Philippine government responsible for guarding against external and internal threats to peace and security in the country.
Department of National Defense
99
what is under the DND
Armed Forces of the Philippines
100
is the executive department of the Philippine Government responsible for the protection of the social welfare of rights of Filipinos and to promote the social development.
Department of Social Welfare and Development
101
is the executive department of the Philippine government responsible for the maintenance and expansion of viable, efficient, and dependable transportation systems as effective instruments for national recovery and economic.
Department of Transportation
102
what are under DOT
Land Transportation Franchising And Regulatory Board
Land Transportation Office
103
is the executive department of the Philippine government responsible for the promotion of agricultural and fisheries development and growth.
Department of Agriculture
104
what are under DA
National Food Authority
Bureau of Fisheries and Aquatic Resources
105
The mission of the __________ is to uphold the rule of law, to keep our country safe, and to protect civil rights.
Department of Justice
106
what are under DOJ
Public Attorney's Office
Office of the Solicitor General
107
These government securities are longer term certificates of indebtedness, with maturities ranging from 1-10 years
Treasury Notes
108
These government securities are longer term certificates of indebtedness, with maturities ranging from 20-30 years
Treasury Bonds
109
The National's budget top priority sector for 2024
Education
110
If legal representation is required, this agency acts on behalf of the PH gov't
Office of the Solicitor General
111
This agency makes sure there is an adequate supply of rice and works with the local government to arrange relief in the event of disaster
National Food Authority
112
COMPOSITION OF THE STATE
GOVT
PEOPLE
TERRITORY
SOVEREIGNTY
113
the political system by which a country or community is
administered and regulated.
GOVERNMENT
114
IT IS THE CITIZENS
PEOPLE
115
- (an area of) land, or sometimes ocean , that is considered as
belonging to or connected with a particular country or person.
TERRITORY
116
supreme power or authority.
SOVEREIGNTY
117
are funds used not only to keep the government
machinery going but also to enable the government to carry out its various
fiscal functions of allocation, distribution, and stabilization
PUBLIC REVENUE
118
OBJECTIVES OF GOVERNMENT FINANCE
1. To protect the territory and its inhabitants
2. To create a stable macroeconomic foundation
119
INCOME SOURCES OF THE PHILIPPINES
Tax Revenues
➢ Capital Revenues
➢ Extra-ordinary incomes -
➢ Grants
120
cover compulsory contributions to finance government
activities.
Tax Revenues
121
Major Tax revenues of the Philippines are classified as follows
INCOME TAXES
PROPERTY TAXES
ESTATE AND GIFT TAXES
IMPORT DUTIES -
AMNESTY TAXES -
BUSINESS LICENSE TAXES -
COMMUNITY TAX
DOCUMENTARY STAMP TAXES-
EXCISE TAX -
CHARGES ON FOREST PRODUCTS -
WHARFAGE FEES
FRANCHISE TAXES
MISCELLANEOUS TAXES
122
- imposed on incomes of individuals, corporations and
partnerships.
INCOME TAXES -
123
levied on the use ownership of wealth immovable
property
PROPERTY TAXES -
124
tax on the privilege decedent of transmit property at
death.
ESTATE AND GIFT TAXES -
125
cover all taxes on foreign products which are transported
in the country.
IMPORT DUTIES
126
- imposed by special laws as in the series Presidential
Decrees delinquent taxpayers
AMNESTY TAXES
127
- include privilege taxes, fixed percentage and
similar taxes on brewers or on occupation, practices of profession, etc.
BUSINESS LICENSE TAXES
128
poll tax charged from individuals, partnerships and
corporation residing in the Philippines
COMMUNITY TAX
129
- levied upon documents, instruments,
papers, sales and transfer of obligation, right or property incident thereto.
DOCUMENTARY STAMP TAXES-
130
taxes on alcohol, sugar. playing cards, etc.
EXCISE TAX -
131
include all taxes charged on timber and
firewood cut from unregistered private lands and other Forest products.
CHARGES ON FOREST PRODUCTS
132
charges for wharfage relative to imports and exports.
WHARFAGE FEES -
133
imposed for any special right or privilege granted by a
government.
FRANCHISE TAXES
134
cover all other taxes not covered by the above listed categories.
MISCELLANEOUS TAXES
135
cover proceeds from sales of fixed capital or scrap
thereof and public domain and gains on such sales.
Capital Revenues
136
include repayments of loans made by
government corporations and local governments and the receipts and
shares in income of the Central Bank of the Philippines.
Extra-ordinary incomes
137
cover voluntary contributions and aids given to the government
for its operation on specific purposes. It does not require any monetary
commitment on the part of the recipient. It can be in the form of money
and/or materials.
Grants -
138
As defined by the United Nations, a ____ is a political unit of a
nation or state constituted by law with power of control over local affairs
including the power to impose taxes
LOCAL GOVERNMENT
139
The Purposes of Local Government Units
To serve as an agency or instrumentality of the state [National
Government] in carrying on the functions of government which the state
cannot conveniently exercise
To act as agency of the inhabitants of the community in the regulation and
the operation of municipal franchises and public utilities, the promotion and
management of their local affairs, such as maintenance of water system and
others.
140
is autonomous of other provinces within the
republic. Each province is governed by two main elected branches of the
government: executive and legislative
The Provincial Government
141
The Provincial Government of Tarlac is composed of
_______ municipalities and ___
city, namely:
17, 1
142
MUNICIPALITIES OF TARLAC
Anao
* Bamban
* Camiling
* Capas
* San Manuel
* Concepcion
* Gerona
* La Paz
Mayantoc
* Moncada
* Paniqui
* Pura
* Ramos
* San Clemente
* San Jose
* Santa Ignacia
* Victoria
143
is made up of more urbanized and developed
barangays serves as a general-purpose government for the coordination and
delivery of basic, regular and direct services and effective governance of the
inhabitants within its jurisdiction.
The City Government
144
It serves primarily general government for the
coordination and delivery regular and direct services and effective
governance of its jurisdiction
The Municipal Government
145
- is the basic government unit in the political structure. It serves
both as primary planning and implementing unit of government policies,
plans, programs, projects and activities in the community
Barangay
146
INTERGOVERNMENTAL RELATIONSHIP
1. Concept of Partnership
2. Planning for Development
147
One objective of local autonomy is to make local government units’ effective
partners of the national government in attaining national goals.
1. Concept of Partnership
148
The declared policy that the socioeconomic development of the various
regions within the country will be promoted by undertaking regional planning
at the national level and specific planning and programming at the local level
led to the creation of regional councils
2. Planning for Development
149
is established under the Local
government Code. Under said law, each local government, including the
barangay, maintains a General Fund which comprises monies and resources
of the purposes local government not specifically available declared for
payment by law as of chargeable expenditures to other funds
local governments' fund structure
150
who has the authority to label citizen as VAT
BIR
151
difference between estate and gift
estate - dead
gift - alive
152
who will pay the tax for estate tax?
executor ; who made the will
153
these are taxes that are usually lifted by the gov't
import duties
154
how much is the amnesty here in PH
6%
155
example of community tax
sedula
156
what law is under excise tax
RA 10351
157
where did the business license taxes go?
LGU hindi national govt
158
in documentary stamp tax what is being taxed?
transaction hindi docs
159
these are taxes on port on the ocean
wharfage fees
160
companies abroad pay this tax when building business here in PH
franchise tax
161
who governs the executive branch of the govt
PRESIDENT
162
who governs the legislative branch of the govt
SENATORS
