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FISCAL OPERATIONS. MONEY MATTERS. THE GOLDEN RULE:. He/She with the Gold Rules. OR Nurture others as you Nurture yourselves. FROM DOMINATION / SUPERIORITY TO NURTURANCE / SUBSIDIARITY. Overview of the Philippines and China Fiscal Operations.
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FISCAL OPERATIONS MONEY MATTERS THE GOLDEN RULE:
He/She with the Gold Rules OR Nurture others as you Nurture yourselves
FROM DOMINATION / SUPERIORITY TO NURTURANCE / SUBSIDIARITY
Comparative Philippine and China Central and Local Government Share in Revenue and Expenditure Net of IRA of P146,591.95 million **Inclusive of IRA of P146,591.95 million Sources: Philippine Commission on Audit 2007 Financial Reports; National Bureau of Statistics of China
United States Central and Local Government Share in Revenue and Expenditure Source: usgovernmentexpenditure.com
GERMANY • The federal government plays a small overall role in raising revenues and expenditures compared to the average OECD country. Not including social security funds, the bulk of spending on programmes and policies occurs in the Länder and municipalities.
Administrative Divisions Sources: Wikipedia; National Statistical Coordination Board; Country Reports-United Nations Economic and Social Commission for Asia and the Pacific *Under the National Government
General Functions of Local Governments Sources: Country Report-United Nations Economic and Social Commission for Asia and the Pacific; Philippine Local Government Code
General Functions of Local Governments Source: Country Report-United Nations Economic and Social Commission for Asia and the Pacific-China
Organizations Maintained/Run at the Regional Level Source: Country Report-United Nations Economic and Social Commission for Asia and the Pacific-China
Local Government Revenue Sources ONLY 10 20 biggies Sources: Country Reports China and the Philippines-United Nations Economic and Social Commission for Asia and the Pacific
Comparative Local Government Revenue –Share (in Percent) Sources: Intergovernmental Fiscal Relations in China, Analisa Fedelino and Teresa Ter-Minnassian; Ahmad et.al (2002); Phil. Local Government Code
United States : Sources of State Revenue Source: Tax Foundation Report : stateline.org
Expenditure Allocation Sources: Country Reports China and the Philippines-United Nations Economic and Social Commission for Asia and the Pacific
Expenditure Allocation Source: Country Report China-United Nations Economic and Social Commission for Asia and the Pacific
China Central and Local Government Main Items Revenue Breakdown (in percent) Source: National Bureau of Statistics of China
China Central and Local Government Main Items Revenue Breakdown (in percent) cont. Source: National Bureau of Statistics of China
Comparative Revenue Effort as % of GDP Source: Wikipedia; Department of Finance
LINK BETWEEN LOCAL REVENUEAND LOCAL ECONOMIC PERFORMANCE • CHINA: Yes • USA: Yes • Philippines: None for ave. LGU
Philippine National Government Main Expenditure Items (2007) Source: Philippine Commission on Audit 2007 Financial Reports
LGU Income Breakdown Per LGU Component Source: Figures are from the Philippine Commission on Audit 2007 Financial Reports and BIR website
Philippine LGU Total Income vs Central Govt. Expenditure per Region *Inclusive of IRA Source: Figures are from the Philippine Commission on Audit 2007 Financial Reports
Fiscal Subsidiarity Through Empowered Regional Development Councils
REGIONAL DEV COUNCILS • The official function/mandate of the RDCsis mainly coordination on PLAN and POLICY formulation, implementation, monitoring and evaluation.
MEMBERS OF THE RDC • Its membership is 75% from government sector which includes, elected officials like Governor, Mayor, etc. and regional line agencies like the DPWH, DOH, etc. 25% is private sector which includes NGOs, POs, and other private sectors.
PRESIDENTIAL AUTHORIZATIONS TO 17 RDCs • 1. Directly Supervise BIR Agencies in area • 2. Directly Retain Rev. Collections w/in IRA • 3. Strictly Enforce People’s Participation and • “bottom-up” Planning of LGC • 4. Enforce E-Comm Law having all LGUs • display in LGU websites: budgets / expens • 5. Directly Supervise all PNP units • 6. Ensure Prep of Land Use, Sus Dev. Plans • 7. Directly Supervise Reg. Line Agencies
REALIZATION OF LOCAL AUTONOMY • The realization of local autonomy shall be facilitated through improved coordination of national government policies and programs and extension of adequate technical and material assistance to less developed and deserving local government units;
IRA per Region vs BIR Regional Collection (in P000,000) Source: Figures are from the Philippine Commission on Audit 2007 Financial Reports and BIR website
Income Surplus/Deficit Analysis Based on Regional GDP Sources: Philip Medalla Paper and COA 2007 Figures
LOCAL GOVERNMENT CODE OF 1991 LOCAL GOVERNMENT CODE OF 1991 CORY’S LEGACY OF INSTITUTIONALIZING PEOPLE POWER
LOCAL DEVELOPMENT COUNCIL SEC. 108.Representation of Non-Governmental Organizations.- Within a period of sixty (60) days from the start of organization of local development councils, the nongovernmental organizations shall choose from among themselves their representatives to said councils. The local sanggunian concerned shall accredit nongovernmental organizations subject to such criteria as may be provided by law. SEC. 109.Functions of Local Development Councils.- (a) The provincial, city, and municipal development councils shall exercise the following functions: (1) Formulate long-term, medium-term, and annual socioeconomic development plans and policies; (2) Formulate the medium-term and annual public investment programs; (3) Appraise and prioritize socioeconomic development programs and projects; (4) Formulate local investment incentives to promote the inflow and direction of private investment capital; (5) Coordinate, monitor, and evaluate the implementation of development programs and projects; and (6) Perform such other functions as may be provided by law or competent authority. (b) The barangay development council shall exercise the following functions: (1) Mobilize people's participation in local development efforts; (2) Prepare barangay development plans based on local requirements; (3) Monitor and evaluate the implementation of national or local programs and projects; and (4) Perform such other functions as may be provided by law or competent authority.
2. LOCAL HEALTH BOARD 3. LOCAL SCHOOL BOARD 4. LOCAL PBAC 5. LOCAL PEACE & ORDER COUNCIL
FISCAL SUBSIDIARITY • Citizens directly allocating a portion of their • taxes FISCAL DEVOLUTION DEVOLVING REVENUES TO LOCAL UNITS FISCAL AUTONOMY RIGHT TO CREATE NEW TAXES