DEPARTMENT OF ECONOMICS

College of Arts and Sciences

San Beda College
COURSE SYLLABUS
Second Semester, AY 2014 2015

Vision-Mission Statement

Vision
Mission
Core Values

San Beda College, a Catholic educational institution, is committed to the Christian formation of the Bedan Community as its
service to the Church, the Philippine society, and the world.
:
San Beda College envisions a community that is Fully Human, Wholly Christian, Truly Filipino, and Globally Competitive.
:
San Beda College aims to form its members in Faith, Knowledge, and Virtue
:
Inculcate in the students the Benedictine core values of Study, Community, and Pursuit of Peace; Ora et Labora.

Course Title
Course Code
Prerequisite
Credits

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Fiscal Studies
ECO28
ECO01
3 units

Instructor
Email
Office
Consultation Hours
Venue

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:

Mary Grace P. Ronquillo

marygracepronquillo@yahoo.com
Department of Economics
Saturday 2:00-3:30 pm
CAS Library, Faculty Section

I. Course Description:
This course provides academic learning on the fundamentals of fiscal policy. It entails principles, concepts and theories about public budgeting, public expenditures,
public revenues and public borrowings. It also covers the discussion of fiscal measures in controlling inflation and deflation. Likewise, it presents an in-depth
analysis on strategic framework of the government in instituting fiscal reforms. Lastly, it includes the policy issues and challenges in Philippine fiscal studies in lieu
of addressing the economic problems in the country.
II. Course Objectives:
At the end of the course, the students are expected to:

Explain the principles, concepts, and theories of public budgeting, public expenditures, public revenues and public borrowings;
Assess the effectiveness of revenue collection mechanisms of the government;
Analyze the fiscal measures in controlling inflation and deflation as well as the fiscal reforms made by the internal and external sectors of the economy;
Determine the key issues and challenges in fiscal policy;
Provide policy recommendations on how government can maximize the use of its limited financial resources vis--vis improve revenue generation;
Recognize the important role of economists in the fiscal policy making;
Live out the economic and financial principles, concepts, and theories learned for their development as individuals and as members of society through the
proper use of scarce resources; and
Address economic realities from the Christian and Filipino perspective towards option for the poor and underserved members of society as well as care for
the environment through effective and efficient utilization and allocation of Gods creations.

III. Course Outline

Course Objectives
Discuss the classroom
rules and regulations,
grading system and course
requirements; and

Time
Allotment
3 hours

Introduction to the Course

Teaching
Strategies/Activities
Knowing each other

Review about Macroeconomics

Interactive Discussion

Topics

Assessment of
Learning
Pre-Test on Basic
Principles of
Macroeconomics

Classify the contents and

items included in the
national budget; and
Determine the problem
areas and the needed
reforms in budgeting.

Understand the course syllabus

and the requirements for the
entire semester; and
Assess the students initial
knowledge on
Macroeconomics.

Conduct a pre-test to
assess the level of
knowledge of students
about Macroeconomics.
Trace the history of
Philippine fiscal policy.

Learning Outcomes

3 hours

6 hours

A. Fundamentals of Fiscal Policy

1. Definitions of Fiscal Policy
2. Types of Fiscal Policy
3. Components of Fiscal Policy
4. Functions of Fiscal Policy
5. Stances of Fiscal Policy
6. Economic Effects of Fiscal
Policy
7. History of Philippine Fiscal
Policy
B. Public Budgeting
1. Definitions of Budget
2. Objectives of Budgeting
3. Principles of Budgeting
4. Orientations in Budgeting
5. Approaches in Budgeting
6. Constitutional and Legal
Basis of Budgeting
7. Kinds of Appropriations

Interactive Discussion

Quiz

Recognize the importance of

fiscal policy in the economy.

Reaction Paper on
Legislative Budget
Hearing

Evaluate the Philippine

Budgeting System from budget
formulation to budget
accountability.

Audio-Visual
Presentation: History of
Philippine Fiscal Policy

Presentation of examples of
budget
Analysis of the General
Appropriations Act of 2012

Contrast the relevant

theories on public
expenditures; and

3 hours

Examine the expenditures

incurred by each
department of the National
Government.

8. The Budget Cycle

9. Effects of Budget Deficit
C. Public Expenditures
1. Definition of Philippine
Expenditure System
2. Economic Analysis of Public
Expenditures
3. Philippine Expenditure
Policies
4. Causes of Increasing Public
Expenditures
5. Theories on Public
Expenditures
6. Classifications of Public
Expenditures

Interactive Discussion

Quiz

Illustrate the patterns and trends

of government spending in the
Philippines.

Analysis of the National

Expenditure Program of
2013

Distinguish tax revenue

from non-tax revenue.

3 hours

D. Public Revenues
1. Definition of Public Revenues
2. Sources of Public Revenues
3. Revenue Collection
Mechanisms

Interactive Discussion

Quiz

Categorize the revenues

collected by the National
Government.

Discuss the fundamentals

of taxation and the nature
of taxes.

3 hours

E. An Overview of the Philippine Tax

System
1. Income Tax
2. Corporate Tax
3. Consumption Tax
4. Taxes on Wealth
5. Taxes on Consumption

Interactive Discussion

Board Work

Compute for the relevant taxes

in the Philippines.

Quiz

Deduce the economic effects of

3 hours
Define the various

3 hours

F. Public Borrowings

Case Analysis

MIDTERM
EXAMINATION
Interactive Discussion

kinds of public debt; and

Explain the mechanisms
of the government to
reduce internal and
external borrowing.

Discuss the fiscal

3 hours
measures in controlling
inflation and deflation.
Explain the various fiscal 3 hours
reforms made by the
Philippine government.

Discuss the basic

3 hours
procedures and techniques
in writing a policy paper
Discuss the various fiscal 3 hours
issues and challenges in
the Philippines.
3 hours

1. Definition of Public
Borrowings
2. Types of Public Debt
3. Rationale for Public
Borrowings
4. Policy Framework for Public
Borrowings
5. Minimum Criteria for Public
Borrowings
6. The Role of GOCCs and
LGUs in Public Borrowings
7. Public Debt Top 20 in the
World
8. Debt Financing
G. Fiscal Measures to Control
Inflation and Deflation

borrowing.
Classroom Debate

Interactive Discussion

Quiz

Understand the effects of

inflation and deflation in fiscal
administration.
Apply the strategic framework
in crafting fiscal policies.

H. Strategic Framework of Fiscal

Policy
1. Tax Administration Reforms
2. Tax Policy Reforms
3. Non-Tax Revenue Reforms
4. Expenditure Policy Reforms
5. Debt Management Reforms
6. External Sector Reforms
I. Fiscal Policy Making

Public Forum

Policy Framework

Presentation of Policy Paper

Policy Paper

Write and present a policy paper

relevant to fiscal studies.

J. Philippine Fiscal Policy Issues and

Challenges

Economic Conference

Reaction Paper about

the Economic
Conference

Conduct an economic
conference.

FINAL EXAMINATION
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V. Course Requirements
Graded recitations, quizzes, policy paper, and reaction papers.
VI. Grading System
Mid-Term Grade Computation
Class standing for the midterm
Midterm exam
Midterm Grade

60%
40%
100%

Final Grade Computation

Midterm exam
Class standing for the midterm
and final term
Final exams
Final Grade

20%
50%
30%
100%

VII. Course References

Books
Anderson, John E. (2003). Public Finance: Principles and Policy. USA: Houghton Mifflin Company.
Hyman, David N. (2002). Public Finance: A Contemporary Application of Theory to Policy (7th ed.). USA: Harcourt College Publishers.
James, Simon and Nobes, Christopher. (2000). The Economics of Taxation (7th ed.). Harlow, England: Financial Times Prentice Hall.
Musgrave, Richard A. and Musgrave, Peggy B. (1989). Public Finance in Theory and Practice. New Your: McGraw-Hill Company.
Nice, David. (2002). Public Budgeting. USA: Wadsworth Group.
Romualdez, Eduardo Z. Sr., Yoingco, Angel Q., and Casem, Antonio O. Jr. (1973). Philippine Public Finance. Manila: GIC Inc.
Rosen, Harvey S. (2002). Public Finance (6th ed.). New York: McGraw-Hill Companies, Inc.
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Laws and related materials

The Philippine Constitution of 1987
The General Appropriations Act (GAA)
The National Internal Revenue Code of 1997
Electronic sources
www.dof.gov.ph
www.dbm.gov.ph
www.neda.gov.ph
www.adb.org
www.worldbank.org
Government offices and international organizations
Department of Finance
Department of Budget and Management
National Economic Development Authority
International Monetary Fund
World Bank
Asian Development Bank
United Nations Development Programme
Prepared by:

Endorsed by:

Mary Grace P. Ronquillo

Faculty

Edilberto B. Viray Jr.

Chairperson

NOTED BY:

APPROVED BY:

DR. FEDELIZ S. TUY

Associate Vice Dean

DR. TESSIE R. DA JOSE

Dean
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