Patterns of Philippine Revenue 1960-1990

Only available on StudyMode
  • Download(s) : 2438
  • Published : October 9, 2011
Open Document
Text Preview
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...
tracking img