Classifications of Philippine Public Expenditures

Classifcations o Philippine Public Expenditures

 The Philippine public expenditures are classifed in such a way as to permit the measurement o the costs and benefts o the entire program o the government.

National government expenditures are broadly classifed into fve (5) types which are !. "evel o government #. Nature o expense $. %unctional categories &. Type o unds 5. 'rganiational nits

!. "evel o government a.National *overnment +eers entirely to the machinery o the central government, as distinguished rom the di-erent orms o local government.

b. "ocal *overnment +eers to the political subdivisions established by or in accordance with the onstitution '/cially local government in the Philippines, oten called local government units or "*s, are divided into three levels 1 provinces and independent cities2 component cities and municipalities2 and barangays.

#. Nature o expense a.urrent operating expenditures Purchases o goods and services in current consumption within the fscal year, including the ac3uisition o urniture and e3uipment normally used in the conduct o government operations and or temporary construction o promotional research and similar purposes.

4. Personal services salaries and wages, social security contributions,overtime pay, etc. 44. aintenance and other operating expenditures traveling expenses, supplies and materials, water, illumination and power 6ervices, rent, etc.

#. Nature o expense b. apital 7xpenditures 8re outlays which are used or the purchase o goods and services, the beneft o which extend beyond the %iscal 9ear and which add to the assets o the government including investments in the capital o the government owned and controlled corporations and their subsidiaries.

$. %unctional categories 8re broad grouping o expenditures covering the main unctions o the national government. a) 7conomic :evelopment;6ervices b) 6ocial :evelopment;6ervices c) National :eense d) *eneral *overnment;Public 6ervices e) :ebt 6ervice

a.7conomic :evelopment;6ervices overs the agriculture and natural resources, industry, trade and tourism, utilities and inrastructures.

b. 6ocial :evelopment;6ervices overs those o education, public health and medicare, housing and community amenities, social service and welare, and other social service expenditures not classifed elsewhere.

c. National :eense;6ecurity 4ncludes all military expenditures but excluded those or the police orce.

d. *eneral *overnment;Public 6ervices 4ncludes all general administration expenses (inclusive o allotments to local governments), administration o ond und

a.*eneral %und 4s available or any purpose to which the legislative body may choose to apply it, and is composed o the receipts or revenue which are not by law or by contractual agreement applicable to a specifc purpose or purposes.

b. 6pecial 8ccount 1 *eneral und +eers to the und created or a special purpose or ob