Legal Basis

Accounting and Auditing, Budgeting,

Taxation, Debt Management
I. Accounting and Auditing
Accounting
Mixed accrual-cash accounting basis.
Taxes cash accounting
Revenues and expenses accrual accounting
Recorded and controlled in 3 books agency,
BTr, and COA
Chart of accounts are prescribed by COA.
Accounting standards
Prescriptions of the Government Financial
Statistics system and of the COA.
Auditing
has the power, authority, and duty to examine, audit, and
settle all accounts pertaining to the revenue and receipts of,
and expenditures or uses of funds and property, owned or
held in trust by, or pertaining to, the Government, or any of its
subdivisions, agencies, or instrumentalities, including
government-owned or controlled corporations with original
charters, and on a post-audit basis. (Art. IX Sec. 2.1, 1987
Constitution) No entity of the Government is exempted. (Sec.
3)
has the exclusive authority to define the scope of its auditing
and examination, and promulgate accounting and auditing
rules and regulations. (Art. IX Sec 2.2, State Audit Code of
1978)

II. Budgeting
Budgeting
"The President shall submit to the Congress within
30 days from the opening of every regular session, as
the basis of the general appropriation bill (GAB), a
budget of expenditures and sources of financing
including receipts from existing and proposed
revenue measures." (Art. VII Sec. 22, 1987
Constitution)

No money shall be paid by the Treasury except in
pursuance of an appropriation made by law. (Art. VI
Sec. 29, 1987 Constitution)


III. Taxation
Taxation
REPUBLIC ACT NO. 8424 (TAX REFORM ACT OF 1997)
SECTION 2. It is hereby declared the policy of the State to
promote sustainable economic growth through the
rationalization of the Philippine internal revenue tax system,
including tax administration; to provide, as much as possible,
an equitable relief to a greater number of taxpayers in order
to improve levels of disposable income and increase
economic activity; and to create a robust environment for
business to enable firms to compete better in the regional as
well as the global market, at the same time that the State
ensures that Government is able to provide for the needs of
those under its jurisdiction and care.
Taxation
a) promote sustainable economic growth
rationalization of the Philippine internal revenue system
and tax administration
b) provide an equitable relief to a greater number of
taxpayers
improve levels of disposable income =>increased
economic activity
c) create a robust environment for business to enable
firms to compete in the regional and global markets
d) ensure that the Government is able to provide for
the needs of those under its jurisdiction and care
IV. Debt Management
Development and Budget Coordinating
Council
DBM + DOF + BTr + NEDA + BSP
Set budget paramaeters based on available
resources
Decides collectively in the amount and strategy
of borrowings (either domestic of foreign).