3. 
Formulates the overall
resources application strategy
to match the government’s
macroeconomic policy;

4. 
Prepares the medium-term
expenditure plan, indicating the
programming, prioritization, and
financing of capital investment and
current operating expenditure
requirements of medium-term sectoral
development plans;

5. 
Undertakes the formulation of the
annual national budget in a way
that ensures the appropriate
prioritization and allocation of
funds to support the annual
program of government;

6. 
Develops and administers a
national accounting system
essential to fiscal
management and control;

7. 
Conducts a continuing study of the
bureaucracy and assesses as well as
makes policy recommendation on its
role, size, composition, structure and
functions to establish a government
bureaucracy imbued with a spirit of
public service;

8. 
Establishes the rules and
procedures for the
management of government
organization resources;

9. 
Conceptualizes and
administers the government’s
compensation and position
classification plan; and

10. 
Monitors and assesses the
physical as well as the financial
operations of local government
units and government-owned
and/or controlled corporations.

11. The national budget is the
plan for a country’s expenses for
a given, is prepared with
consultations from the different
departments of the national
government to ensure that the
budget designated would be
appropriate and sufficient for the
needs of the department and its
attached offices.

12. After the national budget has
been prepared, it will be
submitted to the Congress of the
Philippines, and the legislative
body will then conduct hearings
on the budget, to determine
whether the requested amount is
justifiable.

13. The Constitution of the
Republic specifically gives
Congress the power to approve
the national budget.
Congress will request the
respective department heads and
executive officials to attend these
hearings and justify the requested
funds themselves.

14. After the national budget has
been approved, it will be
submitted to the President, and
his approval makes the national
budget official- will be the basis
for how the government will spend
its money for a given year.

15. Commission on
Audit(COA) makes sure that the
money is spent the way it was
appropriated as indicated in the
Philippine Constitution.

16. NATIONAL BUDGET CHART
FORMULATION/PREPARATION
EXECUTIVE DEPARTMENT
PRESIDENT AND THE DEPARTMENT OF
BUDGET AND MANAGEMENT
APPROVAL/CHECKING
LEGISLATIVE DEPARTMENT OR
CONGRESS:
SENATE AND HOUSE OF
REPRESENTATIVES
IMPLEMENTATION
VARIOUS DEPARTMENTS AND AGENCIES
OF THE NATIONAL GOVERNMENT
EXAMINATION/AUDITING
COMMISSION ON AUDIT

17. The Commission on
Audit, after studying how the
funds were used, is required to
submit a report to the president
about the matter, and recommend
measures to ensure better
government spending in the
future.

18. The way any government
would spend would naturally be
based on the needs and wants of
its populace.

20. Direct tax - when it is deducted
directly from income; or
Indirect tax - when it is added to
the price of goods and
services, by which it becomes a
tax on consumption.

21. PRINCIPLES OF TAXATION
1.
2.
3.
Taxation must be productive.
Taxation must be equitable.
Taxation must be flexible.

23. 
Personal Income Taxes –
This are the tax derived from
the income of individuals and
residents of a country.

24. 
Corporate Income Tax – This
tax is levied against income but
not of the individual, but the
corporations and
businesses, and comes with a
different computation.

25. 
Sales Tax – This is the tax for
merchandise or items
bought, sometimes ranging from
3 percent to 4 percent.

26. 
Value –Added Tax – This is like
a national sales tax, and it
collects taxes at various stages
of production. Value-added tax
collects from the production of
raw materials to the point of
sales.

27. 
Property Tax – The government
requires an annual tax to be paid
by property owners for each
piece of property(real estates
and/or building) that they own.

28. 

Capital Gains Tax – This is a tax
on the income gained from the
sales of real estate and other
capital assets.
Tariff – This is tax placed on
foreign goods that enter a
country.

30. 1.
A progressive tax increases
as the income increases. This
type of tax is burden for rich.
2.
A regressive tax decreases as
the income increases. This
type of tax is a burden for the
poor.

31. 3.
A proportional tax remains the
same regardless of the income

33. Income that can be taxed
includes
salaries, wages, bonuses, allow
ances, tax reimbursements, and
fringe benefits.

34. CATEGORY
CATEGORY
EXEMPTION
Single Individuals
P 20,000
Heads of Families
P 25,000
Married Individuals
P 32,000
For Each Dependent (Of
Head of Families or
Married Individuals)
P 8,000

35. Income tax returns are
filed on or before the fifteenth
day of April of each year and
are usually automatically filed
by the employer for the
employee.

36. Situation 1:
Mr. Gomez who is head of a
family and has three children
earned P 100,000 for the year.

37. Computation:
Gross Yearly Income:P100,000.00
Less: Exemptions:
25,000.00(as head of
family)
24,000.00(3 children at
P8000
for each dependent)
========
Taxable Income:
P51,000.00

38. This means that the income to be
taxed amounts to P51,000.00. Looking at
our given tax table, we can see that this
amount falls under the level
Over 30,000 but not over 70,000
The applicable rate for this is
P2,500+15% of the excess over
P30,000

39. So let us now compute:
At P51,000 taxable income, the excess
over P30,000 is P21,000. (P51,000 minus
P30,000)
 15% of P21,000 is P3,150
 P2,500 + P3,150 = P5,650

Mr. Gomez will pay an income tax of P5,650 for the
year.

40. Situation 1:
Ms. Bonilla who is individual
earned P95,000 for the year.

41. Computation:
Gross Yearly Income: P 95,000.00
Less: Exemptions:
20,000.00 (single
individual)
========
Taxable Income:
P75,000.00

42. This means that the income to be
taxed amounts to P60,000.00. Looking at
our given tax table, we can see that this
amount falls under the level
Over 70,000 but not over 140,000
The applicable rate for this is
P8,500 + 20% of the excess over
P70,000

43. So let us now compute:
At P75,000 taxable income, the excess
over P70,000 is P5,000. (P75,000 minus
P70,000)
 20% of P5,000 is P1,000
 P8,500 + P1,000 = P9,500

Ms. Bonilla will pay an income tax of P9,500 for the
year.