DEPARTMENT OF FINANCE (DOF)

The Department of Finance (DOF) is the government’s steward of sound fiscal

policy. It formulates revenue policies that will ensure funding of critical
government programs that promote welfare among our people and accelerate
economic growth and stability.
The Department envisions that the effective and efficient pursuit of the critical tasks under its wings
revenue generation, resource mobilization, debt management and financial market development shall
provide the solid foundation for a Philippine economy that is one of the most active and dynamic in the
world.
The fact that the birth of the Department of Finance predated that of the Philippine Republic is
testimony to its importance. Founded on 24 April 1897 by the Philippine Revolutionary Government, the
DOF has undergone various structural and functional overhauls, but has nonetheless remained a key
department. At present, the critical tasks of revenue generation, resource mobilization and fiscal
management rest on the shoulder of the Department of Finance.
The government must provide the citizenry with infrastructure, education, health and other basic
services; and the DOF must be ready with the funds for them. Likewise, the DOF must steer fiscal
programs toward an investment-friendly environment, which is the catalyst for growth.

VISION
•
 A strong economy with stable prices and strong growth;
 A stable fiscal situation with adequate resources for government projects and budgetary which
could be adequately financed;
 A borrowing program that is able to avoid the crowding-out effect on the private sector, and
minimizes costs;
 A public sector debt profile with long maturities and an optimum mix of currencies that
minimizes the impact of currency movements;
 A strong economic growth with equity and productivity

MISSION
Our economy must be one of the most dynamic and active in the world, globally competitive and
onward looking. The DOF shall take the lead in providing a solid foundation for the achievement of this
objective, by building a strong fiscal position, through the following:
 Formulation, institutionalization and administration of sound fiscal policies;
 Improvement of tax collection efficiency;
 Mobilization of adequate resources on most advantageous terms to meet budgetary
requirements;
 Sound management of public sector debt; and
 Initiation and implementation of structural and policy reforms
MANDATE
Under Executive Orders 127, 127-A and 292, the Department of Finance is responsible for the following:
Formulation, institutionalization and administration of fiscal policies in coordination with other
concerned subdivisions, agencies and instrumentalities of the government;
 Generation and management of the financial resources of government;
 Supervision of the revenue operations of all local government units;
 Review, approval and management of all public sector debt, domestic or foreign; and
 Rationalization, privatization and public accountability of corporations and assets owned,
controlled or acquired by the government.

POWERS AND FUNCTIONS

1. Formulate goals, action plans and strategies for the Governments resource mobilization effort;

2. Formulate, institutionalize and administer fiscal and tax policies;

3. Supervise, direct and control the collection of government revenues;

4. Act as custodian of, and manage all financial resources of Government

5. Manage public debt;

6. Review and coordinate policies, plans and programs of GOCCs;

7. Monitor and support the implementation of policies and measures on local revenue administration;

8. Coordinate with other government agencies on matters concerning fiscal, monetary, trade and other
economic policies

9. Investigate and arrest illegal activities such as smuggling, dumping, illegal logging, etc. affecting
national economic interest

Citizens Charter
Republic Act No. 9485, more popularly known as the Anti-Red Tape Act, was enacted in 2007 to improve
efficiency in the delivery of government service to the public through the reduction of bureaucratic red
tape and prevention of graft and corruption. Under Section 6 of R.A. 9485, all government agencies are
enjoined to set up its respective service standards, now known as Citizen’s Charter. In keeping with the
policy of the State to promote integrity, accountability, proper management of public affairs and public
property as well as to establish effective practices aimed at the prevention of graft and corruption in
government, the Department of Finance has adopted its own Citizens Charter for the several offices that
have been identified to have frontline services.
Transparency Seal

SYMBOLISM

A pearl buried inside a tightly-shut shell is practically

worthless. Government information is a pearl, meant to be
shared with the public in order to maximize its inherent
value. The Transparency Seal, depicted by a pearl shining
out of an open shell, is a symbol of a policy shift towards
openness in access to government information. On the one hand,
it hopes to inspire Filipinos in the civil service to be more open to citizen
engagement; on the other, to invite the Filipino citizenry to exercise their right to participate in
governance.

This initiative is envisioned as a step in the right direction towards solidifying the position of the
Philippines as the Pearl of the Orient a shining example for democratic virtue in the region.

NATIONAL BUDGET CIRCULAR 542

National Budget Circular 542, issued by the Department of Budget and Management on August 29,
2012, reiterates compliance with Section 93 of the General Appropriations Act of FY2012. Section 93 is
the Transparency Seal provision, to with:

Sec.93. Transparency Seal

To enhance transparency and enforce accountability, all national government agencies shall maintain a
transparency seal on their official websites. The transparency seal shall contain the following
information:

(i) the agency’s mandates and functions, names of its officials with their position and designation, and
contact information;

(ii) annual reports, as required under National Budget Circular Nos. 507 and 507-A dated January 31,
2007 and June 12, 2007, respectively, for the last three (3) years;

(iii) their respective approved budgets and corresponding targets immediately upon approval of this
Act;

(iv) major programs and projects categorized in accordance with the five key results areas under E.O.
No. 43, s. 2011;
(v) the program/projects beneficiaries as identified in the applicable special provisions; (vi)
sthttp://www.dof.gov.ph/index.php/transparency-seal/financial-performance-report/atus of
implementation and program/project evaluation and/or assessment reports; and

(vii) annual procurement plan, contracts awarded and the name of contractors/suppliers/consultants.

Cluster & Agencies

The Department of Finance is a government institution that formulates fiscal policy. Carrying out its
basic function of revenue generation to ensure adequate financing for the needs of the country has led
to an expansion of the DOF’s role over time. Below are the Bureaus, Agencies and Government
Corporations under the supervision of DOF.

 BUREAU OF INTERNAL REVENUE BIR

 BUREAU OF CUSTOMS BOC
 BUREAU OF TREASURY BTR
 BUREAU OF LOCAL GOVERNMENT FINANCE BLGF
 COOPERATIVE DEVELOPMENT AUTHORITY CDA
 INSURANCE COMMISSION IC
 NATIONAL TAX RESEARCH CENTER NTRC
 CENTRAL BOARD OF ASSESSMENT APPEAL CBAA
 PHILIPPINE DEPOSIT INSURANCE CORPORATION PDIC
 PHILIPPINE EXPORT-IMPORT CREDIT AGENCY PHILEXIM

SERVICES

a. Application for LGU Loan

Under the Local Government Code (LGC), local governments may contract loans, credits, and other
forms of indebtedness to finance the construction, installation, improvement, expansion, operation, or
maintenance of public facilities, infrastructure, housing projects, the acquisition of real property, and
the implementation of other capital investment projects, subject to terms and conditions as may be
agreed upon by the LGU and the lender. The proceeds from such transactions accrue directly to the LGU.
However, an LGU can only incur expenditures for debt servicing up to 20% of its annual regular income.
Every loan application must comply with the requirements of the DOF, the Bureau of Local Government
Finance (BLGF), and the Bangko Sentral ng Pilipinas (BSP).
b. Application for Tax Exemption
The Department of Finance is a government institution that formulates fiscal policy. Carrying out its
basic function of revenue generation to ensure adequate financing for the needs of the country has led
to an expansion of the DOF’s role over time. Below are the Bureaus, Agencies and Government
Corporations under the supervision of DOF.

ADVOCACIES:
1. Tax Watch

Tax Watch, a campaign by the Department of Finance and the Bureau of Internal Revenue, publishes
weekly lists of individual and non-individual taxpayers. The goal of this campaign is to increase
transparency on tax payments and to encourage people to be conscientious in paying the right taxes

2. Reform Agenda

A pearl buried inside a tightly-shut shell is practically worthless. Government information is a pearl,
meant to be shared with the public in order to maximize its inherent value. The Transparency Seal,
depicted by a pearl shining out of an open shell, is a symbol of a policy shift towards openness in
access to government information. Reforms on :
A. C U S T O M S M O D E R N I Z A T I O N
B. R E F O R M O F G O V E R N M E N T - O W N E D A N D C O N T R O L L E D
CORPORATIONS (GOCCS)
C. R E F O R M E D R E V E N U E C O L L E C T I O N A G E N C I E S
D. C U S T O M S N G B A Y A N - The Customs ng Bayan microsite, launched amid ongoing
reforms at the Bureau of Customs, features information never previously published with the
goal of increasing transparency of trade and revenue collection activity. The content includes
Tax Watch advertisements, announcements of the Bureau’s seizures of smuggled goods, and
data from the improved BOC Electronic to Mobile (E2M) System, which gives the public easier
access to the BOC’s services.
E. I N C R E A S I N G T A X C O L L E C T I O N
F. R E F O R M I N G T H E B U R E A U O F C U S T O M S ( B O C )
G. I N C R E A S I N G T A X C O L L E C T I O N
H. P E R A N G B A Y A N - In line with the Aquino Administration’s “tuwid na daan” campaign to
combat corruption and promote transparency in government, the Pera ng Bayan website seeks
to inspire and engage the public to serve as active partners of the Department of Finance in its
drive against tax evaders, smugglers and erring officials of the Department and its attached
bureaus.
I. ISKOR NG ‘YONG B A Y A N - The LGU Fiscal Sustainability Scorecard aims to
institutionalize the regular publication of fiscal indicators and performance review of the LGUs in
the spirit of accountability and good local financial housekeeping.
J. I N S P I R E D I N V E S T O R C O N F I D E N C E
K. I M P R O V E D I N V E S T M E N T G R A D E C R E D I T R A T I N G S
L. S U S T A I N E D F I S C A L S T A B I L I T Y

3. Sin Tax Reform

Republic Act 10351, or the Sin Tax Reform Law, is one of the landmark legislations under the Aquino
Administration. It is primarily a health measure with revenue implications, but more fundamentally,
it is a good governance measure. The Sin Tax Law helps finance the Universal Health Care program
of the government, simplified the current excise tax system on alcohol and tobacco products and
fixed long standing structural weaknesses, and addresses public health issues relating to alcohol and
tobacco consumption.

4. Anti -Corruption
The Revenue Integrity Protection Service (RIPS) is the anti-corruption arm of the Department of
Finance created by Executive Order 259 (December 17, 2003). Pursuant to EO 259, RIPS is
empowered to investigates allegations of corruption in the Department of Finance and its attached
agencies such as the Bureau of Internal Revenue and the Bureau of Customs, the Bureau of Local
Government Finance, Bureau of Treasury, Central Board of Assessment Appeals, the Insurance
Commission, the National Tax Research Center, the Fiscal Incentives Review Board, and the
Privatization and Management Office. RIPS then files the necessary charges against erring officials
and employees with the proper government agencies (e.g., Office of the Ombudsman).

5. Public- private Partnership Program

6. Pay Your Taxes
The Bureau of Internal Revenue’s (BIR) tax campaign RFP, formally launched in February 2014,
places emphasis on keeping the Filipino taxpayer informed by promoting the simplified steps
(Register, File and Pay) that are necessary for the taxpayer to fulfill his obligations of “paying
taxes right”. The BIR, through this campaign, hopes that the increased awareness on paying
taxes will increase tax revenue collections.
The RFP stresses the importance of paying taxes by incorporating concepts of patriotism
wherein payingtaxes are key in making nation-building possible. The intertwining concepts of
paying taxes and love for one’s country are in full display in the new video “Angat Pa, Pinas!”.

7. Municipal Development Fund Office

The MDFO Provides concessional financing and free technical assistance to Local Government
Units nationwide

8. PH-Italy Debt SWAP Program

Strengthening development cooperation between the Philippines and Italy, the Italian
Government identified the Philippines as one of the beneficiaries of a debt conversion program
in accordance with the Programming Guidelines and Directions of the Italian Government
Cooperation for 2011-2013. This led to the signing of a Debt for Development Swap Agreement
between the two Governments on 29 May 2013. A Counterpart Fund Account (CPFA) was
established arising from the Agreement where the Philippines’ outstanding debt obligation with
Italy amounting to Euro 2.9 million will be converted to finance development projects in the
poorest provinces, municipalities, and communities in the Philippines. Officially named
Philippines-Italy Debt for Development Swap Program, it aims at supporting the achievement of
the country’s Millennium Development Goals relating to poverty reduction and sustainable
development.