Patterns of Philippine Revenue 1960-1990

PATTERNS OF PHILIPPINE REVENUE
1960-1990
I. INTRODUCTION
The government revenue system, including the agencies involved in taxation and borrowing, has always been the focus in the study of public finance.
Public revenues 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.
The Philippine revenue system has assumed more importance since the government has steadily increased its role in the provision of social goods (goods of public nature) which the private sector could not (or does not want to) produce for reasons of unprofitability.
Since the government’s development role is pervasive and massive, the strength of its financial capability can spell success or failure of its development plan s and strategies. A look at the patterns of Philippine revenue in the past may reveal some insights into how and to what extent the Philippine government has finances its development programs.
OBJECTIVES OF GOVERNMENT FINANCE AND THE REVENUE SYSTEM The traditional objective of government finance is to maintenance of the state that protects the territory and its inhabitants. Carrying out these objectives necessitates the establishment of a revenue system, the principal device for the mobilization of financial resources. Of prime importance is the promotion of economic development by the government through direct financing, like the construction of infrastructures and direct involvement in certain productive activities to fill the gap the private sector has left, and through public entrepreneurship by the use of government corporations or public enterprises. Economic development is pursued directly, maintaining economic stability, through compensating actions for fluctuations in business activities by the use of taxes that can adapt to the changing conditions and needs of the economy. Thus, some forms of taxation help stimulate investment. In combination with such other devices as socialized pricing, and credit and exchange controls, the revenue system is a major device against inflation and an effective tool in achieving economic stability, employment and income redistribution. In the area of social development, improvement through the provision of education and health services and income redistribution form a more balanced economic growth can be achieved through taxation and expenditure policies. In sum, government finance is geared towards the attainment of development objectives, e.g., the improvement of the quality life of the people.

II. INCOME SOUCES OF THE PHILIPPINES
The term “public revenues” as used here pertains to “all incomes or receipts of the government treasury used to support government expenditures.”
It has been noted that there are differences in the classification of accounts among government agencies involved in the collection, fiscal policy, resource generation, budgeting and fiscal control and management. In 1977, the Commission on Audit and the Ministry of Budget (now the Department of Budget and Management) revised the classification of accounts. The division of accounts into sections was initiated for the purpose of detailed recording and reporting in accordance with the existing practices, rules and regulations and for the International Monetary Fund’s (IMF) Government Finance Statistics, which makes possible international comparison among the IMF’s member countries.
The Philippine revenues are derived from five main sources: 1. Tax revenues a. Property taxes b. Income tax c. Amnesty tax d. Estate and gift tax e. Community tax f. Immigration tax g. Excise tax h. License and business tax i. Import duties j. Documentary stamps tax k. Charges on forest products l. Wharf age fees m. Franchise tax n. Import tax o. Miscellaneous tax 2. Capital revenues 3. Extra-ordinary income 4. Public borrowings 5. Grants