Sclar (2000) gives a simple definition of privatization as the process of providing public services and goods to be managed by private entities. Although this definition relies more on transfer of ownership and changes in the distribution mechanism, it also raises questions of efficiency and quality. Debates over who should control public resources also come with the question of who manages them most effectively. As this issue involves the public sector and how the government will manage the nation's resources, the common notion in the process of privatization as a means of earning revenue for private companies raises concerns in the public about the real interests behind this decision. When analyzing this topic, it is necessary to consider certain conditions to understand the potential benefits and risks of taking this step. Due to the Philippines' move toward development, increased government spending is inevitable. This requires a larger budget source that can be financed through asset sales. Profits can be made from these assets if managed properly, but perhaps due to political issues and the economic crisis, many assets are being sold or offered for sale to private companies. According to the Ministry of Finance, the national government reported a budget deficit of 53.22 billion pesos for July 2013, which represents for this period public expenditure of 197.84 billion pesos, compared to 144.62 billion pesos of recipes that may be out of stock. This situation shows how much the government is spending on different types of projects and why it is venturing to privatize its assets. Privatization also removes all the costs that the government has to bear to run public services like...... middle of paper ......micshelp.org/blog/501/economys/advantages-of-privatization /http://www.pids.gov.ph/index2.php?pr=136http://www.washingtonpost.com/blogs/wonkblog/post/more-states-privatizing-their-infrastructure-are-they-making -a-mistake/2012/03/31/gIQARtAhnS_blog.htmlhttp://www.oecd.org/dev/49954093.pdfhttp://www.dbm.gov.ph/?p=6681http://www.gov. ph/2014/02/13/secretary-abad-rapid-sustained-inclusive-enomic-expansion-eyed/Philippine PPP Program, The BOT Center. Ministry of Trade and Industry. http://www.philippineconsulatela.org/Trade/02b_Primer%20-%20The%20Philippine%20PPP%20Program.pdfPrivatization of infrastructure assets: financial structures, participant motivations and tenant tax benefits. Khalid A. Razaki, Raymond Pollastrini, Robert J. Moreland. Journal of Finance and Accounting http://www.aabri.com/manuscripts/121265.pdfhttp://ppp.gov.ph/?p=14948