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Module-1.1 PUBLIC FINANCE

This document provides an introduction to the module on public finance. It explains that public finance is an elective subject that aims to provide students with knowledge and understanding of key topics in public finance, including the role and scope of public finance, government spending theories and practices, ways to raise government revenue, managing public debt, and the effects of raising and spending government funds. It also covers government budgeting concepts, principles, theories, and systems as well as the budgeting process. The document outlines the objectives of the lesson as helping students discuss fiscal policy in the Philippines, define public finance, and differentiate between public and private finance. It defines public fiscal administration as formulating, implementing, and evaluating policies around taxation, revenue administration, resource

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Pauline Joy Lumibao
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3K views5 pages

Module-1.1 PUBLIC FINANCE

This document provides an introduction to the module on public finance. It explains that public finance is an elective subject that aims to provide students with knowledge and understanding of key topics in public finance, including the role and scope of public finance, government spending theories and practices, ways to raise government revenue, managing public debt, and the effects of raising and spending government funds. It also covers government budgeting concepts, principles, theories, and systems as well as the budgeting process. The document outlines the objectives of the lesson as helping students discuss fiscal policy in the Philippines, define public finance, and differentiate between public and private finance. It defines public fiscal administration as formulating, implementing, and evaluating policies around taxation, revenue administration, resource

Uploaded by

Pauline Joy Lumibao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 1

INTRODUCTION
Fin 112 (Public Finance) is an elective subject in Financial Management Program. It is therefore necessary
that the students must be provided with a simple presentation and adequate knowledge and a clear
understanding on the role, scope and development of public finance, the theories & practices of government
spending; the ways and means of raising government revenues; the reasons why the government should
manage its public debts; and the direction and effects of raising and spending government funds.
Likewise, it deals with the concepts, principles, theories & systems of budgeting as well as the mechanics of
government budgeting.
What to do before (Pretest)
Write TRUE if the statement is correct and FALSE if the statement is incorrect.

__________1. Tax is the only source of income of the government.


__________2. Fiscal policy refers to the mix of policies and taxation, expenditures and borrowings for the
achievement of government objectives.
__________3. Public debt deals with the principle and problems relating to the allocation of public spending.
__________4. The income of the states is referred to as Public Revenue.
__________5. Public Finance is the lifeblood for the conduct of government programs, projects and activities.
Lesson I: THE ROLE AND SCOPE OF PUBLIC FINANCE

A. Introduction

Public Finance, from national to local governments, is a vital aspect; it is considered the lifeblood
for the conduct of government programs, projects and activities. The construction of roads and bridges,
communication and power facilities both for home and industrial uses, educational and health services,
peace and order and fire protection are traditional fields of activity which the government is expected
to engage in. However, to enable the government to engage in these different activities, it has to raise
revenue mainly through the imposition of taxes. Thus, this wide and ever growing influence of
government in economic activities has naturally brought about much attention to the field of public
finance.

OBJECTIVES:

At the end of the lesson, the students should be able to:


 Discuss the function of fiscal policy in the Philippines
 Define Public Finance
 Differentiate Public and Private Finance

B. What is Public Fiscal Administration?

With the emergence of the field of public administration, much interest has been directed towards the
political administrative and management aspects of formulating, implementing and evaluating fiscal policy,
hence, the term public fiscal administration.

Public Fiscal Administration= refers to the formulation, implementation and evaluation of policies and
decisions on taxation and revenue administration; resource allocation, budgeting and public borrowing and debt
management; and accounting and auditing.

As a system, it includes the environment, structures, systems processes and personalities involved in
formulating, implementing and evaluating fiscal policy.

Fiscal Policy = refers to the mix of policies and taxation, expenditures and borrowings for the achievement of
government objectives.

Download and watch this short video:

Fiscal policy of the Philippines.mp4

What you will do


Self-Test 1.1

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