Department of Finance

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The Department of Finance (DOF; Filipino: Kagawaran ng Pananalapi) is the executive department of the Philippine government tasked with the “formulation, institutionalization and administration of fiscal policies, management of the financial 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.”[1] The department is currently headed by Secretary Carlos Dominguez III.

History

The Department of Finance was founded on April 24, 1897 by the revolutionary government led by General Emilio Aguinaldo. He appointed General Baldomero Aguinaldo as director of finance, who became the secretary of the treasury during the first constitutional republican government, the Biak-na-Bato Republic.

In 1901, an act passed by the William Howard Taft-led Civil Service Commission created the Department of Finance and Justice. Gregorio Araneta was the first Filipino who served as secretary of the department. The Department of Justice and Finance was divided into two departments in 1916, with the Philippine Legislature’s passing of Reorganization Act No. 2666. In 1936, the formulation and preparation responsibilities of the DOF with regards to the government's budget were transferred to the newly created Budget Commission. Income and resource estimate preparation remained within the purview of the DOF. With the creation of the Central Bank of the Philippines in 1949, secretary of finance Miguel Cuaderno transferred the finance portfolio to Pio Pedrosa as the former took on responsibilities as the central bank’s first governor.

In 1970, Cesar Virata was appointed secretary of the department. He concurrently held the position when he served as the country’s prime minister from 1981 to 1986. In 1974, with the adoption of the parliamentary form of government, the department was a ministry.

In the 1980s, as government policy turned increasingly interventionist in the economy, the ministry provided caution. It initiated the creation of inter-agency committees that sought to rationalize the otherwise free-for-all system of government resource allocations. The Investment Coordination Committee (ICC) was created to rationalize government investments, the Government Corporate Monitoring and Coordinating Committee (GCMCC) to introduce reforms to the government corporate sector and the Fiscal to reverse the proliferation of the fiscal incentives.

With the ratification of the 1987 Constitution, which mandated a presidential form of government, the Ministry of Finance was reverted to a department Constitution. The department was consequently reorganized, its organizational structure, distribution of powers and functions, and coordination mechanisms systematized. The Value Added Tax was introduced in 1988, replacing a complicated sales tax structure.

With the implementation of the department's policies, which resulted in sound fiscal and monetary conditions, the Philippines was hailed as "Asia's Newest Tiger" by various international credit institutions. In 1997, the national government recorded a budget surplus for the third consecutive year, and the public sector generated its fiscal surplus since the sector started to be monitored in 1985.

In 2004, owing to the Philippines’ long-term foreign currency and domestic currency long-term senior debts for the government's ability to manage its deficit and macro fundamentals, the Japan Credit Rating Agency (JCRA) maintained its credit rating of "BBB" for . The rating is two notches higher than those of non-Asian rating agencies such as Moody's, Standard and Poor's, and Fitch.

List of the Secretaries of the Department of Finance

# Name Term Began Term Ended President
Director of Finance
A Baldomero Aguinaldo April 1897 November 1897
Minister of Finance
1 Mariano Trías July 15, 1898 May 9, 1899 Emilio Aguinaldo
B Hugo Ilagan May 9, 1899 November 13, 1899
Secretary of Finance and Justice
C Henry Clay Ide September 1, 1901 July 30, 1908
D Gregorio S. Araneta July 1, 1908 October 30, 1913
E Victorino Mapa November 1, 1913 January 14, 1917
Secretary of Finance
Victorino Mapa January 1, 1917 January 14, 1917
F Alberto Barreto January 14, 1917 July 17, 1928
G Miguel Unson July 18, 1928 December 13, 1931
H Vicente Carmona January 1, 1932 December 31, 1932
I Rafael Alunan July 1, 1933 April 30, 1933
J Vicente Encarnacion April 23, 1933 July 24, 1934
2 Elpidio Quirino July 25, 1934 February 18, 1936
Manuel L. Quezon
3 Antonio de las Alas February 19, 1936 November 15, 1938
4 Manuel Roxas November 26, 1938 August 28, 1941
5 Serafin Marabut August 21, 1941 December 29, 1941
6 José Abad Santos December 30, 1941 March 26, 1942
Secretary of Finance, Agriculture, and Commerce
7 Andrés Soriano March 26, 1942 July 31, 1944 Manuel L. Quezon
Secretary of Finance
8 Jaime Hernandez August 8, 1944 May 27, 1946 Sergio Osmeña Sr.
Manuel Roxas
(2) Elpidio Quirino May 28, 1946 November 24, 1946
9 Miguel Cuaderno November 25, 1946 January 2, 1949
Elpidio Quirino
(8) Jaime Hernandez January 1949 January 1952
10 Aurelio Montinola, Sr. January 1952 December 1953
(8) Jaime Hernandez December 1953 January 1960 Ramon Magsaysay
Carlos P. Garcia
11 Dominador Aytona January 25, 1960 December 29, 1961
12 Fernando Sison January 2, 1962 July 31, 1962 Diosdado Macapagal
13 Rodrigo Perez August 1, 1962 January 7, 1964
14 Rufino Hechanova January 8, 1964 December 13, 1965
15 Eduardo Romualdez January 1, 1966 February 4, 1970 Ferdinand Marcos
16 Cesar E. A. Virata February 9, 1970 July 2, 1978
Minister of Finance
Cesar E. A. Virata July 2, 1978 March 3, 1986 Ferdinand Marcos
17 Jaime V. Ongpin March 26, 1986 January 30, 1987
Corazon Aquino
Secretary of Finance
Jaime V. Ongpin January 30, 1987 September 14, 1987 Corazon C. Aquino
18 Vicente Jayme September 15, 1987 December 1989
19 Jesus Estanislao January 1, 1990 June 30, 1992
20 Ramon del Rosario July 1, 1992 June 1, 1993 Fidel V. Ramos
21 Ernest C. Leung June 2, 1993 January 31, 1994
22 Roberto de Ocampo February 1, 1994 March 30, 1998
23 Salvador Enriquez April 1, 1998 June 30, 1998
24 Edgardo B. Espiritu July 1, 1998 December 31, 1999 Joseph Estrada
25 Jose T. Pardo January 2, 2000 January 20, 2001
26 Alberto G. Romulo January 23, 2001 June 30, 2001 Gloria Macapagal-Arroyo
27 Jose Isidro N. Camacho June 30, 2001 November 30, 2003
28 Juanita D. Amatong December 1, 2003 February 14, 2005
29 Cesar V. Purisima February 15, 2005 July 15, 2005
30 Margarito B. Teves July 22, 2005 June 30, 2010
(29) Cesar V. Purisima June 30, 2010 June 30, 2016 Benigno Simeon Aquino III
31 Carlos Dominguez III June 30, 2016 Incumbent Rodrigo Duterte

Organizational Structure

The Department is headed by the Secretary of Finance (Philippines), with the following 11 undersecretaries and 6 assistant secretaries.

  • Undersecretary for Strategy, Economics and Results Group
  • Undersecretary for the Chief Economist
  • Undersecretary for Corporate Affairs Group
  • Undersecretary for Anti-Red Tape Program
  • Undersecretary for Domestic Finance Group and Legislative Liaison
  • Undersecretary for Revenue Integrity Protection Service
  • Undersecretary for Extractive Industries Transparency Initiative
  • Undersecretary for Municipal Development Fund Office
  • Undersecretary for Policy Development and Management Services Group
  • Undersecretary for Privatization and Office of Special Concerns
  • Undersecretary for Revenue Operations Group
  • Assistant Secretary for Corporate Affairs Group
  • Assistant Secretaries for Domestic Finance Group and Legislative Liaison
  • Assistant Secretary for Revenue Integrity Protection Service
  • Assistant Secretaries for International Finance Group
  • Assistant Secretary for Revenue Operations Group

Offices

Bureaus

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

Offices

  • Central Administration Office
  • Central Financial Management Office
  • Financial and Fiscal Policy and Planning Office
  • Internal Audit Service
  • International Finance Policy Office
  • International Finance Operations Office
  • Privatization and Management Office (PMO)
  • Revenue Integrity Protection Service

Agencies and Corporations[edit]

  • Central Board of Assessment Appeal (CBAA)
  • Insurance Commission (IC)
  • National Tax Research Center (NTRC)
  • Philippine Deposit Insurance Corporation (PDIC)
  • Philippine Guarantee Corporation (PHILGUARANTEE)
  • Philippine Tax Academy (PTA)
  • Securities and Exchange Commission (SEC)

References