History of Fiscal Administration and the Theory and Purpose of Taxation

Topics: Tax, Public finance, Feudalism Pages: 10 (3017 words) Published: February 22, 2013


Fiscal Administration is not difficult to define. In simple terms, fiscal administration is the branch of economics that deals with the revenues and expenditures and their impact on the economy. It is the manner of collecting something from the constituents and spending it also for the constituents. And the exact definition according to http://www.wisegeek.com/what-is-fiscal-administration.htm, fiscal administration is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions, nonprofit organizations, and other public service entities. Constituents charge leaders, whether governmental or organizational, with establishing fiscal policy as part of their duties in relation to responsible fiscal administration. Fiscal policies are tools for the development of fiscal planning budgets, based on the receipt of anticipated funding. As fund disbursement in the form of payroll, purchases, or other expenses occur, management reports appropriate accounting information back to organizational leaders. Historical data, future revenue projections, and current budget demands determine needed adjustments. The entire process forms the basis for future fiscal administration decision making. Leaders of government, nonprofits, and other public service entities have a fiduciary responsibility to those who put them in office, individuals better known as constituents. Effectively managing the fiscal administration of an entity contributes to its overall financial health and ability to continue serving constituents. As such, laws dictate much of the particulars with regard to preparing financial statements, recording transactions, and balancing budgetary demands for such organizations. Fiduciary responsibility dictates that these reports demonstrate responsible management and recording of all activities involving monies paid to or spent by the organization. Government fiscal administration, specifically federal fiscal administration, creates many opportunities for error. By their very nature, governmental organizations are large and complex, requiring numerous divisions, departments, committees, and other bodies. While revenue streams follow only a few paths through these many departments, disbursements and expenses come from all areas. With so many sources of information concerning monetary transactions, errors and omissions may easily slip through unnoticed, creating compromising and difficult to decipher problems. The complexity and sheer volume of information necessary to find such errors explains how corruption often goes unnoticed in certain government sectors. Private sector organizations, such as nonprofit agencies and public postsecondary schools, also experience difficulties deciphering errors in fiscal administration. While these organizations are also large and complex, public reporting documents require far less time to analyze. For this reason, problems with financial management in a nonprofit or public university usually present faster than governmental agencies. This term paper does not just aim to reveal the definition and history of fiscal administration but as well as taxation being one of the sources of the funds being used in the fiscal administration. The author of this term paper wants to find out the following questions: What are the stages of time occurred developments in financial administration and taxation? When was taxation started? Why is taxation important in fiscaladminitration? As we begin the discussion on the fiscal administration it would be better if we start with the development of Fiscal Administration. As discussed in the book of Leonor Magtolis Briones entitled Philippine Public Fiscal Administration, the development of public finance institutions merely reflects the development the development of organized society,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Taxation Essay
  • history Essay
  • Essay about Administration
  • Purpose and History Essay
  • Purpose and History Essay
  • Purpose and History Essay
  • History of Essays
  • Essay about History and Theory

Become a StudyMode Member

Sign Up - It's Free