Department of Finance (Philippines)

The Philippines' Department of Finance (DOF) (Filipino: Kagawaran ng Pananalapi) is the executive department of the Philippine government responsible for the
formulation, institutionalization and administration of scal policies, management of the nancial resources of the
government, supervision of the revenue operations of all
local government units, the review, approval and management of all public sector debt, and the rationalization, privatization and public accountability of corporations and
assets owned, controlled or acquired by the government.

ated to rationalize government investments, the Government Corporate Monitoring and Coordinating Committee (GCMCC) to reform the government corporate sector
and the Fiscal to reverse the proliferation of the scal incentives.
In 1987, the Ministry of Finance was reverted to a Department following the ratication of the 1987 Constitution which provided for a presidential form of government. Accordingly, the Department was reorganized and
its organizational structure, distribution of powers and
functions, and coordination mechanisms were streamlined. In 1988, the Value Added Tax was introduced and
replaced a complicated sales tax structure.

History

Through the Departments policies, which resulted in

sound scal and monetary conditions, the Philippines was
hailed as Asias Newest Tiger by various international
credit institutions and in 1997, the National Government
recorded a budget surplus for the third consecutive year,
and the public sector generated its scal surplus since the
sector started to be monitored in 1985.

The Department of Finance was established on March 17,

1897, at the same time that the Revolutionary Government was founded in Naic, Cavite. General Baldomero
Aguinaldo was appointed Director of Finance by General Emilio Aguinaldo. The Finance Director became the
Secretary of the Treasury under the rst constitutional republican government, the Biak-na-Bato Republic.

In 2004, the Japan Credit Rating Agency (JCRA) maintained its credit rating of BBB for the Philippines longterm foreign currency and domestic currency long-term
senior debts for the governments ability to manage its
decit and macro fundamentals. The rating is two notches
higher than those of non-Asian rating agencies such as
Moodys, Standard and Poors, and Fitch.

In 1901, the Department of Finance and Justice was

formally organized by virtue of an act passed by the
Civil Service Commission, which was headed by William
Howard Taft. Gregorio Araneta was the rst Filipino
appointed Secretary of Justice and Finance. In 1916,
through Reorganization Act No. 2666 of the Philippine
Legislature, the Department of Finance and Justice was
split into two independent departments.

In 1936, DOF functions relative to the formulation and 2 List of the Secretaries of the
preparation of the Governments budget were transferred
partment of Finance
to the newly created Budget Commission. The preparation of income and resource estimates remained with
the Department. In 1949, the Central Bank of the Main article: Secretary of Finance (Philippines)
Philippines was established, Secretary of Finance Miguel
Cuaderno relinquishes the Finance portfolio to Pio Pedrosa to enable him to serve as Governor of the Central
Bank.

De-

3 Oces

In 1970, Minister Cesar E. A. Virata, concurrently Prime

Minister, was appointed Secretary. In 1974, with the
3.1
adoption of the parliamentary form of government, the
Department was changed to a Ministry.

In the 1980s, as government policy turned increasingly interventionist in the economy, the Ministry be
came the voice of caution. It spearheaded the creation
of inter-agency committees to rationalize the otherwise

free-for-all system of allocating government resources.

The Investment Coordination Committee (ICC) was cre1

Bureaus
Bureau of Internal Revenue (BIR)
Bureau of Customs (BOC)
Bureau of the Treasury (BTr)
Bureau of Local Government Finance (BLGF)

3.2

Oces

Privatization and Management Oce (PMO)

3.3

Agencies and Corporations

Insurance Commission (IC)

National Tax Research Center (NTRC)
Central Board of Assessment Appeal (CBAA)
Philippine Deposit Insurance Corporation (PDIC)
Philippine
Export-Import
(PHILEXIM)

Credit

Agency

Government Service Insurance System (GSIS)

Social Security System (SSS)
Public Estates Authority (PEA)
Cooperative Development Authority (CDA)

Regional Oces

References

[1] GAA 2015 (PDF). DBM. Retrieved 22 January 2015.

External links
Department of Finance Philippines website

Coordinates: 143341N 1205914E / 14.561466N

120.987244E

EXTERNAL LINKS

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