Philippines' Gross Domestic Product - the Problem and Its Background

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Introduction

According to the report released August 2013 by the credit rating agency, Standard & Poor's (S&P), the Philippines' gross domestic product (GDP) is expected to expand by almost 7% in 2013 making it Southeast Asia's economic growth leader. Many credit the new vitality to the policies of President Benigno Aquino III, on promises of eradicating graft and fighting poverty. He introduced new taxes, reformed the judiciary, and set the country on a path that shows sign of enduring — it has now enjoyed three straight quarters of economic growth. In relation with this growth, the national government must come across ways for the said growth to be felt not just by the upper level of the society but by the entire nation as well. This study aims to evaluate the performance of the municipal government of Taytay, Rizal. It may also facilitate us to discover overlooked problems or conflicts and at the same time spot improvements, for the betterment of the said local government unit.

No fund shall be paid out of the local treasury except in pursuance of the appropriation ordinance law. That is the fundamental principle governing the legislative body. The government has formulated and issue appropriate guidelines in order to achieve this proper utilization of sources. Transparency of our government's financial reports is of great help to ensure that all the funds appropriated are used only for the advantage of our nation. Though there are some existing issues with regards to the proper allocation of funds, our government at a standstill, tries to make some progress in the Budget Processes in Non-Government Organization (NGOs), Local Government Units (LGUs) and other institutions, through the help of the New Government Accounting System. This new government accounting system guarantees the proper recording, remittance and transparency of the funds set to a particular agency. Through this new accounting system, our government officials and employees will be assisted open-eyed understand our nation's objectives. The budget process among Local Government Units consists of five phases. These are (1) Budget Preparation; (2) Budget Authorization; (3) Budget Review; (4) Budget Execution; and (5) Budget Accountability.

This study of the budget process does not only provide benefit to government agencies and units, but also to students specially those in the field of accountancy. As a preparation to their future careers as professional Certified Public Accountants (CPAs), this study will provide them sufficient knowledge on the budget process and the standards set by the government. It will assist the progression of our Republic Acts and budget manual operations in the improvement of the allocation of certain public budget. This study may also be a medium of awareness