PUB FIN PART 2
mere transfer of money
Spending
instrument of modern fiscal policy
Public/Government Spending
incurring expenditures in excess of revenue
Deficit Spending
actual expenditure
Deficit Spending
injection of government funds
Pump priming
borrowing money for short term used for temporary financing
Short run Compensatory Spending
borrowing money for long term used for permanent deficiency
Long Term Compensatory Spending
Vacant job is always greater than
Full Employment
unemployment cannot find work because their skills do not agree with those demanded by the business
Frictional Unemployment
misfit of their skills and capabilities
Frictional Unemployment
dislocation in the labor market
Seasonal Unemployment
changes in business cycle
Cyclical Unemployment
lack of capital
Structural Unemployment
the government should spend the least
Principle of Minimum Expenditures
Maintenance of law and order
Principle of Minimize Expenditures
public work should not compete with established private firms
Principle of Minimum Interference with Private Enterprises
raise the level of employment
Principle of Maximum Employment
marginal social utility is the greatest
Principle of Maximum Advantage
That production depends upon the total
Underlying Principle of Public Spending Policy
order ti measure the costs and benefits of entire programs
Classification of Philippine Public Expenditures
current consumption within the fiscal year
Current Operating Expenditures
acquisition of furniture and equipment
Current Operating Expenditures
continuing activities of the government
Current Operating Expenditures
These are outlays which are used to purchase
Capital Expenditures
Subsidiaries
Capita Expenditures
cover the agriculture and natural resources
Economic Development Services
cover those education, public health and medicare
Social Development Services
include all military expenditures
National Defense
include all general administration expenses
General Government/Public Services
redemption interest payments and loans
Dept Service
expenditures used to pay interest
Dept Services
Legislative body
General Funds
special purpose or object
Special Account
fund arises from bonds floated
Bond Fund
treated as a special fund
Special Account