HOLY

CROSS OF DAVAO COLLEGE

Sta. Ana Avenue, Davao City

Bachelor of Science in Business Administration (BSBA)
Major: Financial Management

COURSE OUTLINE

Capital Market Management

I. Course Number: FM-E2



Credit: 3 units

II. Course Title: Public Finance



Pre-Requisite: Finance 1a & FM5

III. Course Description:

This subject examines issues central to majority of the most pressing issues in public
affairs: market outcomes, government expenditure programs, and taxation. It also examines the
major strengths and weakness of the market and explores why government involvement is
necessary, In addition it analyzes the models welfare economics use to describe optimal
patterns of government expenditure and taxation, uses the models to analyze real-world
problems and programs, evaluates policies and policy proposals using both efficiency and equity
criteria..

IV. Course Objectives:
At the end of the course, the students should be able to:

1. Develop students understanding of the basic concepts and principles of public finance.
2. Discuss various government activities with respect to government spending and taxation
are analyzed by applying basic principles of economics.
3. Visit government offices that function as intermediaries of public finance.


V. Course Outline








No. of Hours

A. Introduction to Public Finance





13.5

1. Public Finance and Ideology
a. Organic View of Government
b. Mechanistic View of Government

2. Government at Glance
a. The Legal Framework
b. The Size of Government
c. Expenditures
d. Revenues

B. Public Expenditure and Political Economy




13.5

1. Public Goods
a. Public Goods Defined
b. Efficient Provision of Public Goods


c. The Privatization Debate
d. Public Goods and Public Choice

2. Political Economy
a. Direct Democracy
b. Representative Democracy
c. Explaining Government Growth

C. The Public Sector in Perspective





13.5

1. Sources of Revenue and Purpose of Government Expenditures
2. Theories and concepts of Philippines Tax systems and Public Budgeting System
3. LGU, Major Sources of Revenue
4. Sources of Revenue for Barangay Level
5. Budget Cycle










No. of Hours

D. Deficit Finance and Projects of Government




13.5

1. Deficit Finance

a. How Big is the Debt?
b. The Burden of the Debt
c. To Tax or to Borrow

2.
Projects of Government

3.
Cost and Benefit Analysis

a. Discount Rate for Government Projects
b. Valuing Public Benefits and Costs

E. Local Public Finance in Philippines


VI. References

A. Bibliography

Lee, Robert D. et al (2008) Public Budgeting Systems, USA: Jones and Bartletts Publisher

Rosen, Harvey S. and Gayer, Ted. 2010. Public Finance, 9th Ed. McGraw-Hill/Irvin, New York.


Internet:

www.bir.gov.ph

www.dbm.gov.ph

www.gov.ph

VII.
Course Requirements



A.
B.
C.
D.
E.

VIII.

Reaction Paper
Oral Recitation
Group Report
Four major examinations
Visit of government offices that function as intermediaries of public finance

Grading System
Midterm Grade

Prelim Examination
Midterm Examination
Class Standing
Total





Final Grade
=

25%

25%

50%
100%

Final Grade

Semi-final Examination 25%

Final Examination

25%
Class Standing

50%
Total

100%

Midterm Grade + Final Grade

2