DEPARTMENT OF FINANCE

Legal Basis

 Biak-na-Bato Constitution (November 1, 1897) created under the First Philippine Republic headed
by General Emilio Aguinaldo, a Supreme Council one of whose members was the Secretary of the
Treasury who was, before that, the Director of Finance.

 Civil Service Act of 1901 (September 1, 1901) formally organized the Department of Finance and
Justice.

 Reorganization Act No. 2666 (November 18, 1916) divided the Department of Finance and Justice
into two independent departments.

 Presidential Decree No. 1397 (June 2, 1978) transformed the Department of Finance (DOF) into the
Ministry of Finance (MOF) under a parliamentary form of government.

 Executive Order No. 127 (January 30, 1987) and No. 127-A (July 22, 1987) reorganized the MOF.

 Executive Order No. 292 (July 25, 1987), the Administrative Code of 1987, reverted the MOF into
the DOF, providing for its powers and functions and organizational structure.

Mandate

The Department of Finance (DOF) is responsible for the sound and efficient management of the financial
resources of the government by formulating, institutionalizing, and administering fiscal policies in
coordination with other agencies of the government; generating and managing the financial resources
of government; supervising the revenue operations of all local government units; and reviewing,
approving, and managing all public sector debt, domestic or foreign. It is also responsible for the
rationalization, privatization, and public accountability of corporations and assets owned, controlled, or
acquired by the government.

131
LOGICAL FRAMEWORK (DOF)

Societal Goal Economic Growth

Sectoral Goal Fiscal Strength

Organizational Outcomes

National Environment Effective Asset Fiscal

Government Supportive and Debt Sustainability
Fiscal of Financial Services Management of LGUs
Sustainability and the Capital
Market

Major Final Outputs

Fiscal Cash and Anti- Policies, Policies, Policies, Policy Administra-

Policies, Debt Corruption Plans and Plans and Plans and Oversight tion of
(Domestic Manage- in Public Programs Programs Programs on LGUs’ Locally-
and ment Finance for for Public for the Financial Sourced
Interna- Services, Manage- Domestic Sector Govern- Operations and ODA
tional) Accounting ment, Anti- Financial Debt ment Funds for
Plans and and Smuggling and Capital Manage- Corporate LGUs
Program Monitoring and Tax Market ment as Sector as
of NG Evasion Develop- well as well as
Transac- Activities ment Risk Other
tions and and Manage- Govern-
Research Exercise of ment ment Assets
on Fiscal Regulatory
Matters Power

Revenue Generation

N.B. The DOF has no submission of Performance Indicators and Targets for department-wide logframe. PIs and Targets of attached agencies
are shown in their respective agency logframes.

132
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)
%
Particulars PS MOOE CO TOTAL
SHARE
MFO 1
Fiscal policies (domestic and international), plans
and programs 2,370,542 11,492,361 457,989 14,320,892 62.08%
MFO 2
Cash and debt management services, accounting
and monitoring of NG transactions and research on
fiscal matters 65,885 42,598 20,316 128,799 0.56%
MFO 3
Revenue generation 1,942,159 1,873,310 953,038 4,768,507 20.67%
MFO 4
Anti-corruption in public finance management, anti-
smuggling and tax evasion activities and exercise of
regulatory power 809,208 482,615 39,574 1,331,397 5.77%
MFO 5
Policies, plans and programs for domestic financial
and capital market development 292,039 150,726 106,299 549,064 2.38%
MFO 6
Policies, plans and programs for public sector debt
management as well as risk management 264,022 93,684 68,757 426,463 1.85%
MFO 7
Policies, plans and programs for the government
corporate sector as well as other government assets 36,307 6,653 121 43,081 0.19%
MFO 8
Policy oversight on LGUs' financial operations 99,008 52,684 2,957 154,649 0.68%
MFO 9
Administration of locally-sourced and ODA funds for
LGUs 58,775 104,059 1,179,777 1,342,611 5.82%
TOTAL 5,937,945 14,298,690 2,828,828 23,065,463
% S HARE 25.74% 61.99% 12.27% 100.00%

By MFO
(Total Budget = P23,065,463,000)
MFO 4
MFO 3
5.77% MFO 5
20.67% MFO 6
MFO 2 2.38% 1.85%
0.56%
MFO 7
0.19%
MFO 8
0.68%

MFO 9
MFO 1 5.82%
62.08%

133
 By Agency/By MFO
(In Thousand Pesos)
Particulars MFO1 MFO2 MFO3 MFO4 MFO5 MFO6 MFO7 MFO8 MFO9 TOTAL % S HARE

DOF-OSEC 146,479 32,331 19,168 11,301 14,430 1,342,611 1,566,320 6.79%

BOC 7,675,622 1,582,843 182,808 9,441,273 40.93%
BIR 6,420,148 3,185,664 1,116,258 10,722,070 46.48%
BLGF 26,753 154,649 181,402 0.79%
BTr 128,799 415,162 543,961 2.36%
CBAA 9,278 9,278 0.04%
CDA 321,930 321,930 1.40%
IC 207,966 207,966 0.90%
NTRC 42,612 42,612 0.19%
PMO 28,651 28,651 0.12%
TOTAL 14,320,892 128,799 4,768,507 1,331,397 549,064 426,463 43,081 154,649 1,342,611 23,065,463
% SHARE 62.08% 0.56% 20.67% 5.77% 2.38% 1.85% 0.19% 0.68% 5.82% 100.00%

By Agency
(Total Budget = P23,065,463,000)

BIR
46.48%
BOC
40.93%

BLGF
DOF-OSEC BTr 0.79%
6.79% 2.36%
CBAA
0.04%
PMO CDA
0.12% NTRC 1.40%
IC
0.19% 0.90%

134
 By Agency/By Expense Class
(In Thousand Pesos)

Particulars PS MOOE CO TOTAL %

S HARE
Office of the Secretary 166,461 217,199 1,182,660 1,566,320 6.79%
Bureau of Customs 1,158,707 7,542,326 740,240 9,441,273 40.93%
Bureau of Internal Revenue 3,819,708 6,194,799 707,563 10,722,070 46.48%
Bureau of Local Government Finance 117,154 60,998 3,250 181,402 0.79%
Bureau of the Treasury 322,428 132,553 88,980 543,961 2.36%
Central Board of Assessment Appeals 8,095 1,183 - 9,278 0.04%
Cooperative Development Authority 216,158 73,572 32,200 321,930 1.40%
Insurance Commission 70,044 63,987 73,935 207,966 0.90%
National Tax Research Center 30,539 12,073 42,612 0.19%
Privatization and Management Office 28,651 28,651 0.12%
TOTAL 5,937,945 14,298,690 2,828,828 23,065,463
% S hare 25.74% 61.99% 12.27% 100.00%

By Expense Class
(Total Budget = P23,065,463,000)
CO
12.27% PS
25.74%

MOOE
61.99%

135
 DOF - Office of the Secretary
LOGICAL FRAMEWORK (DOF-OSEC)

Societal Goal Economic Growth

Sectoral Goal
Fiscal Strength
Organizational Outcomes

National Environment Effective Asset Fiscal

Government Fiscal Supportive and Sustainability
Sustainability of Capital Market Debt Management of LGUs
Major Development
Final Outputs

Fiscal Anti- Policies, Policies, Policies, Adminis-

Policies, Corruption in Plans and Plans and Plans and tration of
(Domestic Public Programs Programs for Programs for Locally-
and Finance for Domestic Public Sector the Sourced
International) Management Financial Government and ODA
Debt
and Capital Corporate Funds for
Plans and and Exercise Manage-
Market LGUs
Programs of ment Sector as
Regulatory Develop- well as Other
ment
Power Government
Assets
P/A/Ps
Close Conduct of Monitoring,
monitoring of
Implementation Managing of Administering
intelligence fact- performance
the revenue finding
of policies, concessional evaluation and of loans and
collection investigation plans and loans from coordination of the grants
performance in government
and lifestyle programs foreign corporate sector to LGUs
coordination check
with the
with respect countries
to financial Strengthening of Establishing/
concerned Filing of corporate
bureau or administrative and capital Establishing governance developing of
agency (BOC, and criminal market a debt & practices in financing
BIR and BTr) cases for GOCCs/GFIs,
development management including the use facilities for
Prosecution with
Effective the Ombudsman
system, of corporate LGUs
Advocacy governance
financial and including scorecard
fiscal Review of and management
programming current coordination of contingent Review of
syst ems, current policies
Close processes,
liabilities affecting GOCCs/
monitoring and procedures in Regulatory GFIs to ensure
supervision of DOF, BOC, BIR, policy consistency with
the planning national plans and
and other oversight of programs
and attached
mobilization of agencies
agencies Privatize
government under DOF government assets
resources

136
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars Target/ Actual/ Target/ Target/
Amount Amount Amount Amount
MFO 1
Fiscal Policies (Domestic and International)
Plans and Programs 650,740 438,761 330,968 146,479
Tax revenue as a percentage of GDP increased to 13.90% 12.10% 12.80% 13.10%
13.1% by 2012
MFO 2
Anti-corruption in Public Finance Management
and Exercise of Regulatory Power 49,334 48,050 16,184 32,331
Number of cases filed with the Ombudsman 12 5
Number of cases recommended for filing by the Ombudsman
with the Sandiganbayan and the RTC vs. number of cases
filed with the Ombudsman 12 6
Number of persons investigated 48 48
No. of persons charged 24 24
MFO 3
Policies, Plans and Programs for Domestic
Financial and Capital Market Development 47,764 38,447 12,905 19,168
Enabling enviroment for capital market development 1 1 1 1
Higher level of private sector participation in the
delivery of financial services 1 1 1 1
MFO 4
Policies, Plans and Programs for Public Sector
Debt Management 20,911 23,784 9,650 11,301
NG debt % of GDP reduced to 50.2% by 2012 57.4% 52.4% 50.9% 50.2%
MFO 5
Policies, Plans and Programs for the Government
Corporate Sector As Well As Other Government Assets 24,269 27,316 15,561 14,430
Dividend remittance from GOCC (in MP) 6,500 12,013 5,500
2000 5,500
2000
Proceeds from asset privatization remitted to BTr (in MP) 2,500 914 6,000 2,000
MFO 6
Administration of Locally-sourced and ODA Funds 25,990 29,658 1,574,154 1,342,611
for LGUs
Repayment rate 88% 104% 100% 100%
No. of LGUs which have availed of ODA funds 802 414 439 284
TOTAL 819,008 606,016 1,959,422 1,566,320
Note: FY 2010 does not include the performance measures and targets of the Municipal Development Fund Office (MDFO) in the amount of
P1.642B which is still under ALGU in FY 2010.

137
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)
Particulars PS MOOE CO TOTAL % SHARE
MFO 1
Fiscal policies (domestic and international)
plans and programs 70,422 74,824 1,233 146,479 9.35%
MFO 2
Anti-corruption in public finance management
and exercise of regulatory power 16,292 14,767 1,272 32,331 2.06%
MFO 3
Policies, plans and programs for domestic
financial and capital market development 5,837 13,167 164 19,168 1.22%
MFO 4
Policies, plans and programs for public sector
debt management 7,479 3,729 93 11,301 0.72%
MFO 5
Policies, plans and programs for the government corporate
sector as well as other government assets 7,656 6,653 121 14,430 0.93%
MFO 6
Administration of locally-sourced and ODA funds for LGUs 58,775 104,059 1,179,777 1,342,611 85.72%
TOTAL 166,461 217,199 1,182,660 1,566,320
% Share 10.63% 13.87% 75.50% 100.00%

By MFO
(Total Budget = P1,566,320,000)
MFO 6
85.72%

MFO 1
9.35%
MFO 2
MFO 5 2.06%
0.93% MFO 4 MFO 3
0.72% 1.22%
By Expense Class
(Total Budget = P1,566,320,000)
PS
10.63%
MOOE
13.87%

CO
75.50%

138
 Bureau of Customs

Legal Basis

 Act No. 355 (February 6, 1902), “The Philippine Customs Administrative Act”, created the customs
service of the Philippines to collect all revenues warranted by law.

 Executive Order No. 127 (January 30, 1987) reorganized/expanded the organization of the Bureau of
Customs (BOC)-Central Office by providing units to monitor and coordinate assessment and operations
of the Bureau.

 Executive Order No. 463 (January 9, 1998) created the Management Information System and Technology
Group (MISTG) to ensure the implementation of the BOC’s computerization program.

 Republic Act No. 9335 (January 25, 2005), otherwise known as the Attrition Act of 2005, provided for a
system of rewards and sanctions to enhance revenue performance through the creation of a Rewards
and Incentives Fund and a Revenue Performance Evaluation Board within the Bureau of Internal Revenue
and the BOC.

Mandate

The Bureau of Customs (BOC) implements an effective revenue collection by preventing and suppressing
smuggling and the entry of prohibited imported goods. It supervises and controls the entrance and
clearance of vessels and aircrafts engaged in foreign commerce. It also enforces the Tariff and
Customs Code of the Philippines and all other laws, rules and regulations related to tariff and customs
administration.

139
LOGICAL FRAMEWORK (BOC)

Societal Goal Economic Growth

Sectoral Goal Fiscal Strength, Enhancement of Trade and

National Security

Organizational Outcomes

Customs Revenue Trade Facilitation Community and Business

Collection Protection

Major Final Outputs

Assessment Enhancement Clearance of Anti-smuggling Enforcement

and Collection of Tariff Import and Export Campaign of International
and Customs Laws Cargoes and Implementation Commitments,
& Regulations of Judicial Decisions, Including Anti-
Including Filing dumping
of Cases Provisions

P/A/Ps

Strict Expediting Facilitating Identifying modus Filing administrative

implementation of resolution processing operandi and and criminal cases
policies on of cases involving of import and unscrupulous against erring
export shipments persons brokers, importers
warehousing violation of the
and auction TCCP as attended Institutionalizing involved in illegal and/or
paperless, activities representatives
Close monitoring Filing cases for queueless
of regulations of all violations of the release of Purging ghost/ Enforcing laws on
imports/exports post importations fictitious IPR, anti-dumping,
shipments entry audit companies from the special safeguard
provisions Installing X-ray list of accredited measures,
of the TCCP, machines and radio companies quarantine and
active portal international
especially on failure
monitor
to keep records Revising and commitment on
to intensify the
strengthening multilateral
scanning of
the “Reward environmental
shipments agreement
System”

140
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)

FY 2010 FY 2011 FY 2012

Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO 1
Assessment and collection 1,392,568 1,260,189 983,321 7,675,622
Duties and taxes collected (in MP) 275,686 259,240 320,000 365,092
Percentage of collection over target
MFO 2
Enforcement of tariff and customs laws and regulations 592,824 506,565 364,770 381,451
No. of CMOs, EOs and RAs issued 50 62 50 105
Number of cases filed against violators of the TCCP as attended 30 30 37 72
MFO 3
Clearance of import and export cargoes 774,029 476,568 436,226 1,201,392
Value of imports declared (FOB US $M) 51,800 106,095 64,070 75,602
Value of exports processed (FOB US $M) 38,700 54,702 53,680 60,122
MFO 4
Anti-smuggling campaign and implementation of
judicial decisions, including filing of cases 228,079 219,673 157,654 164,324
No. of persons/companies identified as being involved in
illegal activities 60 133 48 144
MFO 5
Enforcement of international commitments, including
anti-dumping provisions 23,164 23,096 17,856 18,484
No. of cases and value of anti-social goods seized 5 10 5 13
No. of cases where penalties are imposed as a result
of the enforcement of multilateral environment
agreement 10 1 - 22
TOTAL 3,010,664 2,486,091 1,959,827 9,441,273
Note: FY 2012 includes P6.656B for Tax Refund and Tax Credit Monetization Program.

141
 FY 2012 MFO BUDGET
By MFO/By Expense Class
(In Thousand Pesos)

Particulars PS MOOE CO TOTAL % Share

MFO 1
Assessment and collection 532,820 7,135,017 7,785 7,675,622 81.30%
MFO 2
Enforcement of tariff and customs laws and regulations 300,422 73,453 7,576 381,451 4.04%
MFO 3
Clearance of import and export cargoes 185,452 292,408 723,532 1,201,392 12.72%
MFO 4
Anti-smuggling campaign and implementation of
judicial decisions, including filing of cases 131,727 31,385 1,212 164,324 1.74%
MFO 5
Enforcement of international commitments, including
anti-dumping provisions 8,286 10,063 135 18,484 0.20%
TOTAL 1,158,707 7,542,326 740,240 9,441,273
% Share 12.27% 79.89% 7.84% 100.00%

By MFO
(Total Budget = P9,441,273,000)
MFO 4
MFO 5
MFO 3 1.74%
0.20%
12.72%

MFO 2
4.04%

MF O 1
81.30%

By Expense Class
(Total Budget = P9,441,273,000)
CO PS
7.84% 12.27%

MOOE
79.89%

142
 Bureau of Internal Revenue

Legal Basis

 Reorganization Act No. 1189 (July 2, 1904) created the Bureau of Internal Bureau (BIR), formally
organized and made operational under the Secretary of Finance.

 Executive Order No. 94 (October 1, 1947) re-established the BIR under the new Republic of the
Philippines apart from Customs which, under the Japanese era, was known as the Bureau of Customs
and Internal Revenue.
 Executive Order No. 392 (January 1, 1951) reorganized the BIR with the creation of an Assessment
Department under which a Withholding Tax Unit was placed when the unit was created later.

 Republic Act No. 233 (June 19, 1959), or the Rewards Law, provided incentives to informers on tax
evaders.

 Republic Act No. 9335 (January 25, 2005), otherwise known as the Attrition Act of 2005, provided for
a system of rewards and sanctions to enhance revenue performance through the creation of a
Rewards and Incentives Fund and a Revenue Performance Evaluation Board within the BIR and the
Bureau of Customs.

Mandate

The Bureau of Internal Revenue (BIR) assesses and collects all national internal revenue taxes, fees and
charges, and enforces all forfeitures, penalties and fines connected therewith, including the execution of
judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts.

143
LOGICAL FRAMEWORK (BIR)

Societal Goal Economic Growth

Sectoral Goal Fiscal Strength

Organizational Outcome
Improved Internal Revenue Collection

Major Final
Outputs
Collection and Assessment Legal Tax Policy Advice Taxpayer Compliance
Services

P/A/Ps
Formulation, coordination, Assistance in the prosecution of civil Implementation of the tax information
monitoring and evaluation of and criminal cases and education program
collection and assessment
Formulation of procedures and Computer and Information Systems
Collation, analysis monitoring, policies on tax fraud investigations Services, including development &
generation and development of and inteliigence operations maintenance of computerized
internal revenue statistics Management Information System
Enforcement of Internal Revenue (MIS)
Enforcement of Internal Revenue laws
laws Enhancement of various tax
systems and programs

144
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)

FY 2010 FY 2011 FY 2012

Particulars
Target/Amount Actu [(L)al/Amount
Target/Amount Target/Amount

MFO 1
Collection and Assessment 3,201,826 2,579,697 3,521,312 6,420,148
Attain collection target set by DBCC
Collection goal (in MP) 875,080 860,441 940,000 1,066,117

MFO 2
Leg [(L)al and Tax Policy Advice Services 1,495,093 1,495,093 1,129,391 1,116,258
No. of rulings visited 5,226 3,201 5,226 5,226
MFO 3
Taxp [(L)ayer Compliance 2,939,107 2,433,295 2,342,894 3,185,664
No. of taxpayers visited/tax mapped 109,081 55,216 109,081 109,081
TOTAL 7,636,026 6,508,085 6,993,597 10,722,070
Note: Includes the follow ing:
RLIP 278,116 279,675 295,254
Tax Refund 445,176 1,000,000 3,313,161
Special Account in the General Fund 417,136
723,292 1,279,675 4,025,551

145
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)

Particulars PS MOOE CO TOTAL % S HARE

MFO 1
Collection and Assessment 1,710,520 4,260,950 448,678 6,420,148 59.88%
MFO 2
Legal and Tax Policy Advice Services 652,903 426,400 36,955 1,116,258 10.41%
MFO 3
Taxpayer Compliance 1,456,285 1,507,449 221,930 3,185,664 29.71%

TOTAL 3,819,708 6,194,799 707,563 10,722,070

% S HARE 35.62% 57.78% 6.60% 100.00%

By MFO
(Total Budget = P10,722,070,000)
MFO 3
29.71%

MFO 1
MFO 2 59.88%
10.41%

By Expense Class
(Total Budget P10,722,070,000)

CO
6.60%

PS
35.62%

MOOE
57.78%

146
 Bureau of Local Government Finance

Legal Basis

 Executive Order No. 127 (January 30, 1987) reorganized the Department of Finance (DOF), elevating
thereby the Office of Local Government Finance to a Bureau.

 Executive Order No. 292 (July 25, 1987), or the Administrative Code of 1987, further strengthened
the operating bureaus under the DOF, including that of the Bureau of Local Governance Finance.

Mandate

The Bureau of Local Government Finance (BLGF) is responsible over the fiscal affairs of the local
government sector. It provides a catalyst role in assisting LGUs achieve sustainable and effective
financial management, making them contributors to national development objectives.

147
LOGICAL FRAMEWORK (BLGF)

Economic Growth
Societal Goal

Sectoral Goal Fiscal Strength

Fiscal Sustainability of LGUs

Organizational
Outcome

Major Final Outputs

Improved Revenue Generation and Fund
Management Efficiency of Local Treasurers Tax Policy Services
and Assessors Through Technical Capacity
Building and Technical Supervision

P/A/Ps
Technical assistance, monitoring and Preparation and implementation of
evaluation of revenue generation policies/guidelines/regulations governing local
projects/activities taxation and assessment

Technical and administrative supervision over Development of real property valuation standards
local treasury and assessment operations
Continuing review of LGC provisions, other
relevant laws and issuances on local finances
(classification and indexing)

148
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO 1
Improved Revenue Generation and Fund
Management Efficiency of Local Treasurers and
Assessors Through Technical Capacity Building
and Technical Supervision 191,034 176,760 162,802 154,649

100% collection efficiency on the four (4) components of

the Revenue Generation Program
- Real Property Tax ( P' 000 ) 42,021 37,130 44,963 44,963
- Business Tax ( P' 000 ) 31,806 34,724 33,396 33,396
- Fees and Charges ( P' 000 ) 10,424 11,772 10,841 10,841
- Economic Enterprises (P' 000 ) 9,508 10,685 9,983 9,983

MFO 2
Tax Policy Services 28,385 26,116 26,098 26,753

No. of requests acted upon with appropriate opinions or

rulings Demand - Driven Demand - Driven Demand - Driven Demand - Driven

TOTAL 219,419 202,876 188,900 181,402

149
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)

Particulars PS MOOE CO TOTAL % SHARE

MFO 1
Improved revenue generation and fund 99,008 52,684 2,957 154,649 85.25%
management efficiency of local treasurers
and assessors through technical capacity
building and technical supervision
MFO 2
Tax Policy Services 18,146 8,314 293 26,753 14.75%
TOTAL 117,154 60,998 3,250 181,402
% SHARE 64.58% 33.63% 1.79% 100.00%

By MFO
(Total Budget = P181,402,000)
MFO 2
14.75%

MFO 1
85.25%

By Expense Class
(Total Budget = P181,402,000)
CO
1.79%

MOOE
33.63%

PS
64.58%

150
 Bureau of the Treasury

Legal Basis

 Aguinaldo Act of 1897 (November 2, 1897), appointing the nation’s first National Treasurer, created
the Bureau of Treasury whose principal functions were the imposition and collection of taxes.

 Philippine Commission Act (October 3,1900) created the Bureau of Insular Treasury tasked to
receive and disburse public funds and to account for same, and provided for the supervision of the
country’s banks.

 Act No. 222 (September 6, 1901) placed the Bureau of Insular Treasury under the executive control
of the Department of Finance and Justice.

 Act No. 1407 (October 26, 1905), as amended by Act No. 1679, renamed the Bureau of Insular
Treasury to Bureau of the Treasury (BTr), given the additional task of coinage and currency supervision.

 Executive Order No. 449 (October 17, 1997) reorganized the BTr under the Department of Finance.

Mandate

The Bureau of the Treasury (BTr) acts as principal custodian of the financial assets of the National
Government (NG). It makes funds available for the various programs and projects of the government. It
assists in the formulation of policies on borrowing, investment and capital market development, in
managing the cash resources, collecting taxes made by NG and guarantee forward cover fees due NG,
and in controlling and servicing its public debt, both foreign or domestic.

151
LOGICAL FRAMEWORK (BTr)

Economic Growth
Societal Goal

Fiscal Strength
Sectoral Goal

Organizational
National Government’s Fiscal Sustainability
Outcome

Major Final Outputs

Cash Management Debt Management Accounting and Assistance in Fiscal

Services Services Monitoring of Reports and Debt Policy
of NG Financial and Formulation and Risk
Fiscal Transactions Management

P/A/Ps
Investment of excess Issuance of Accounting of NG Development and
funds government securities financial/fiscal maintenance of a
transactions portfolio management
Monitoring and framework that
Replenishment of MDS
servicing of NG debt Generation, compilation promotes the
checks
and dissemination of government’s debt
Maintenance of stable statistical reports in management
Making available for
interest rates and accordance with objectives
payment of debt
official Registry of international standards
services Management of financial
Scripless Securities
risk (market, credit,
Monitoring of national liquidity, funding,
collections and operational) in a manner
disbursements consistent with the
government’s fiscal
strategy and the
Bureau’s internal
policies

152
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO 1
Cash Management Services 288,691 287,150 71,019 59,342
Ensuring enough funds to cover the
periodic requirement of the government (in MP)

Interest income on deposits (in MP) 3,606 2,224 2,708 3,018

Interest income on BSF ISSF (in MP) 27,804 23,816 23,963 30,385

MFO 2
Debt Management Services 54,363 54,358 81,856 69,457
Cost of government debt portfolio
Volume of government securities issued (in MP)

T-Bills 762,993 419,324 546,575 914,283

T-Bonds 407,022 437,472 537,019 406,640

MFO 3
Accounting and Monitoring of Reports of
NG Financial and Fiscal Transactions 344,574 336,372 476,838 415,162

% accuracy and completeness of financial

reports submitted to COA and 100% 100% 100% 100%
other fiscal authorities accurate and accurate and accurate and accurate and
complete complete complete complete

% accuracy and completeness of 100% 100% 100% 100%

statistical data series accurate and accurate and accurate and accurate and
complete complete complete complete

MFO 4
Assistance in Fiscal Debt Policy
Formulation as well as Risk Management

% acceptability of the frameworks and

attainment of public debt management goals

% efficiency of public debt management

% acceptance of sufficient operational

guidelines

GRAND TOTAL 687,628 677,880 629,713 543,961

Note: FY 2010 excludes Customs Duties and Taxes of P7.060B.

153
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)

Particulars PS MOOE CO TOTAL % SHARE

MFO 1
Cash Management Services 32,512 17,470 9,360 59,342 10.91%
MFO 2
Debt Management Services 33,373 25,128 10,956 69,457 12.77%
MFO 3
Accounting and Monitoring of Reports of 256,543 89,955 68,664 415,162 76.32%
NG Financial and Fiscal Transactions
MFO 4
Assistance in Fiscal Debt Policy - - - - 0%
Formulation as well as Risk Management
TOTAL 322,428 132,553 88,980 543,961
% SHARE 59.27% 24.37% 16.36% 100.00%

By MFO
(Total Budget = P543,961,000)
MFO 1
10.91%

MFO 2
12.77%

MFO 3
76.32%

By Expense Class
(Total Budget = P543,961,000)

CO
16.36%

PS
59.27%
MOOE
24.37%

154
 Central Board of Assessment Appeals

Legal Basis

 Presidential Decree No. 25 (s.1972), as amended, created a Central Board of Tax Appeals, the
forerunner of the Central Board of Assessment Appeals, composed of the Secretary of Finance, as
Chairman; and the Secretaries of Justice and of Local Government and Community Development,
as members.

 Presidential Decree No. 464 (June 1, 1974), or the Real Property Tax Code, authorized the Central
Board of Assessment Appeals (CBAA) with the same composition, powers and duties of what used
to be the Central Board of Tax Appeals.

 Republic Act No. 7160 (October 10,1991), otherwise known as the Local Government Code of 1991,
transformed the CBAA into an independent collegial appellate quasi-judicial body which decides
on appeals before it, actions taken by the Local Board of Assessment Appeals of municipalities and
cities of Metro Manila and provincial and city Local Board of Assessment Appeals nationwide.

Mandate

The Central Board of Assessment Appeals (CBAA) warrants the observance of the due-process-of- law
clause in the assessment and collection of real property taxes by the government, and ensures that the
taxpayers are given the opportunity to be heard.

155
LOGICAL FRAMEWORK (CBAA)

Economic Growth
Societal Goal

Sectoral Goal Fiscal Strength

Organizational Outcome
Fair and Equitable Real Property Tax
Assessment

Major Final Output

Adjudicatory Services

P/A/P Adjudication of Appealed Cases on Real

Property Assessment

156
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO 10,262 10,010 8,878 9,278

Adjudicatory Services

Hearings/Ocular Inspections 20 49 27 32
Decisions 3 16 7 10
Total 10,262 10,010 8,878 9,278

FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)

Particu lars PS M OOE CO To tal % S h are

MFO 8,095 1,183 - 9,278 100%

Adjudicatory Serv ices
To tal 8,095 1,183 - 9,278
% S h are 87.25% 12.75% 100.00%

By Expense Class
(Total Budget = P9,278,000)
MOOE
12.75%
PS
87.25%

157
 Cooperative Development Authority

Legal Basis

 The Philippine Constitution of 1987 provides for Congress to create an Agency that will promote
the viability and growth of cooperatives as instruments for social justice and economic development.

 Republic Act No. 6939 (March 10, 1990) created the Cooperative Development Authority (CDA)
under the Office of the President (OP) to unify government efforts in the promotion and development
of cooperatives and rationalize rules and policies on cooperative registration under one agency.

 Executive Order No. 332 (July 16, 2004) transferred the CDA from OP to the Department of Finance.

Mandate

The Cooperative Development Authority (CDA), as the lead government agency in the regulation of
cooperatives, promotes the viability and growth of cooperatives as instruments of equity, social justice,
and economic development.

158
LOGICAL FRAMEWORK (CDA)

Societal Goal Economic Growth

and Social Development

Progressive Cooperative
Sectoral Goal Enterprises

Organizational Outcome Financially-Stable

and Socially-Responsive
Cooperative Enterprises

Major Final Outputs

Regulatory Services Development Services

P/A/Ps
Registration of cooperatives, including Formulation & implementation of the
the formulation of guidelines, rules and cooperative sector’s Medium Term
regulations and evaluation of financial Development Plan (MTDP)
statements and general information
sheets Formulation of standards for global
competitiveness of cooperatives
Conduct of investigation and hearing of
cases involving cooperatives and the Provision of technical assistance
provision of legal assistance

159
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount
MFO 1
Regulatory services 200,065 192,777 177,652 210,389

No. of coops registered (new) 2,000 2,000 1,111 1,111

No. of new cooperative members 7,150,748 2,000,000 3,750,000
No. of operating cooperatives supervised/monitored 24,306 24,865 24,306 14,787

MFO 2
Developmental services 119,976 113,395 96,653 111,541

No. of technical assistance provided to cooperatives 20,675 20,675 23,943 23,943

No. of coop-members/beneficiaries capacitated/trained 47,800 47,800 52,733 52,733
TOTAL 320,041 306,172 274,305 321,930

FY 2012 MFO BUDGET

By MFO/By Expense Class
(In Thousand Pesos)
Particulars PS MOOE CO Total % S hare
MFO 1
Regulatory Services 141,764 46,525 22,100 210,389 65.35%
MFO 2
Developmental Services 74,394 27,047 10,100 111,541 34.65%
Total 216,158 73,572 32,200 321,930
% S hare 67.14% 22.85% 10.01% 100.00%

By MFO
(Total Budget = P321,930,000)
MFO 1
65.35%

MFO 2
34.65%

By Expense Class
(Total Budget = P321,930,000)
CO
10.01% PS
67.14%
MOOE
22.85%

160
 Insurance Commission

Legal Basis

 Republic Act No. 275 (January 3, 1949) created the Office of the Insurance Commissioner (from the
Bureau of Banking) to assess insurance companies, insurance agents, and insurance-related matters.

 Presidential Decree No. 63 (November 20, 1972) amended certain sections of the Insurance
Commission Act and provided that the Office of the Insurance Commissioner be known as the
Insurance Commission.

Mandate

The Insurance Commission (IC) promotes growth and financial stability of insurance companies,
professionalizes insurance services, and develops insurance consciousness among the general
populace. It is responsible for establishing a sound national insurance market, and for safeguarding the
rights and interests of the insuring public.

161
LOGICAL FRAMEWORK (IC)

Societal Goal Economic Growth

Financial Sector Stability & Growth

Sectoral Goal

Insurance Industry Stability and Development

Organizational Outcome

Major Final Outputs

Supervisory Consumer and Adjudicatory

Regulatory Services and Examination Services Services

P/A/Ps
Promulgation and implementation Examination of the financial Adjudication of claims and
of policies, rules and regulations conditions of entities engaged in complaints involving loss, damage
governing the operation of entities the insurance business, mutual or liability incurred by an insurer
engaged in insurance activities benefits associations and under any kind of policy or
and institutions with benevolent charitable trust contract of insurance of suretyship
and charitable features
Review of premiums imposed by
Licensing of insurance non-life companies and statistical
companies, general agent’s reports of adjusters to determine
brokers, adjusters, etc. as well as compliance with established
processing of reinsurance treaties standards
and investment of insurance
companies, benevolent Evaluation of financial reports of
associations and charitable trusts insurance companies mutual
and conducting insurance agent’s benefits associations and
examinations charitable trusts, including the
issuance of certifications pertaining
to the financial conditions of such
companies

162
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount
MFO 1
Regulatory Services 86,358 52,232 62,682 89,425
Licenses/Certificates of Authority & Registration Issued 56,500 57,539 62,150 68,365
Income from Forex Issuance (P-000) 67,000 30,355 73,700 60,803
MFO 2
Supervisory and Examination Services 96,374 52,041 62,453 93,585
Penalty collected from violation of tariff rules 445,000 16,131 489,500 539,000
MFO 3
Consumer and Adjudicatory Services 33,517 15,088 18,106 24,956
Information/assistance rendered 25,908 1,610,131 28,499 31,349
Claims settled/adjudicated 650 1,303 715 787
TOTAL 216,249 119,361 143,241 207,966

FY 2012 MFO BUDGET

By MFO/By Expense Class
(In Thousand Pesos)
Particulars PS MOOE CO TOTAL % S hare
MFO 1 30,119 27,514 31,792 89,425 43.00%
Regulatory Services
MFO 2 31,520 28,794 33,271 93,585 45.00%
Supervisory and Examination Services
MFO 3 8,405 7,679 8,872 24,956 12.00%
Consumer and Adjudicatory Services
TOTAL 70,044 63,987 73,935 207,966
% S hare 33.68% 30.77% 35.55% 100.00%

By MFO
(Total Budget = P207,966,000)
MFO 3 MFO 1
MFO 2 12.00% 43.00%
45.00%

By Expense Class
(Total Budget = P207,966,000)
CO PS
35.55% 33.68%

MOOE
30.77%

163
 National Tax Research Center

Legal Basis

 Republic Act No. 2211 (May 15, 1959) created the Joint Legislative Executive Tax Commission
(JLETC), institutionalizing tax research in the Philippines.

 Presidential Decree No. 74 (December 6, 1972) organized the National Tax Research Center (NTRC)
(from the conversion of the JLETC’s Technical Staff) as a single-headed agency under the
administrative supervision of the National Economic and Development Authority (NEDA).

 Executive Order No. 127 (January 30, 1987) transferred the NTRC to the Department of Finance as
an attached agency.

Mandate

The National Tax Research Center (NTRC) conducts continuing research in taxation “to restructure the tax
system and raise the level of tax consciousness among our people to achieve a faster rate of economic
growth and to bring about a more equitable distribution of wealth and income.”

164
LOGICAL FRAMEWORK (NTRC)

Societal Goal
Economic Growth

Sectoral Goal
Fiscal Strength

Improved Tax System

and Fair Distribution of Tax
Organizational Outcome Burden among Taxpayers

Tax Policy Research Services

Major Final Output

Tax system and tax policy studies

P/A/P and surveys and publication

165
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO
Tax policy research services 43,094 43,008 39,786 42,612
Number of studies, tax proposals, tax assessments 27 studies 35 studies 32 studies 33 studies
and evaluations, and comments made aimed at 10 Tax 15 Tax 14 Tax 14 Tax
rationalizing the tax structure and improving tax assessments assessments assessments assessments
fiscal policy 30 evaluations 104 evaluations 36 evaluations 37 evaluations

Total 43,094 43,008 39,786 42,612

FY 2012 MFO BUDGET

By MFO/By Expense Class
(In Thousand Pesos)

Particulars PS MOOE CO Total % S hare

MFO
Tax policy research services 30,539 12,073 42,612 100.00%
Total 30,539 12,073 - 42,612
% S hare 71.67% 28.33% 0.00% 100.00%

By Expenses Class
(Total Budget = P42,612,000)

MOOE
28.33%

PS
71.67%

166
 Privatization and Management Office

Legal Basis

 Executive Order No. 323 (December 6, 2000) created the Privatization Council (PrC) and Privatization
and Management Office (PMO) to promote an orderly, coordinated, and efficient privatization of
government corporations, assets, activities and idle properties.

 Executive Order No. 47 (November 17, 2005) directed the merger of the Board of Liquidators (BoL)
with the PMO, the latter as the surviving entity to undertake the functions of BoL under Executive
Order No. 371, series 1950, as amended.

Mandate:

The Privatization and Management Office (PMO) generates income through the privatization/liquidation
of government corporations and properties with the prior approval of the Privatization Council.

167
LOGICAL FRAMEWORK (PMO)

Societal Goal Economic Growth

Sectoral Goal

Fiscal Strength

Promote An Orderly, Coordinated, and

Organizational Outcome Efficient Privatization/Disposition of Assets,
Activities and Other Properties
Transferred to PMO

Major Final Outputs

Sale, Disposition/Liquidation of Assets, Possession, Preservation/

Activities and Other Properties Assigned Conservation and Administration
by the Privatization Council of Transferred Assets

P/A/Ps
Undertake the marketing/disposition/ Undertake rehabilitation of assets as
liquidation of assets/properties necessary to conserve their value
Extrajudicially attach and repossess
Explore alternative options/ dispositions
properties of delinquent end-users and settle
of assets
conflict of claims

168
 PERFORMANCE MEASURES AND TARGETS
(Amounts in Thousand Pesos)
FY 2010 FY 2011 FY 2012
Particulars
Target/Amount Actual/Amount Target/Amount Target/Amount

MFO 1
Sale, Disposition/Liquidation of Assets,
Activities and Other Properties Assigned by the
Privatization Council 36,749 31,495 28,651 28,651

Remittance of disposition proceeds to BTr (P'000) 533,121 439,823 547,560 547,560

MFO 2
Possession, Preservation/Conservation
and Administration of Transferred Assets -

No. of cases studied - - - -

Total 36,749 31,495 28,651 28,651

169
 FY 2012 MFO BUDGET

By MFO/By Expense Class

(In Thousand Pesos)
Particulars PS MOOE CO Total % S hare

MFO 1
Sale, disposition/liquidation of assets, 28,651 - 28,651 100.00%
activities and other properties assigned by the
Privatization Council

MFO 2
Possession, preservation/conservation - - - -
and administration of transferred assets

Total 28,651 - - 28,651

% S hare 100.00% 100.00%

By MFO
(Total Budget = P28,651,000)

MFO 1
100.00%

By Expense Class
(Total Budget = P28,651,000)

PS
100.00%

170