Sclar (2000) provides a simple definition of privatization as the process of providing public goods and services that will be managed by private entities. While this definition relies more on ownership transfer and changes in the distribution mechanism, this also drives questions of efficiency and quality. Debates over which entity should control public resources also arise from the question of who manages them most effectively. Since 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 way for private companies to earn revenue creates public concerns about the real interests behind this move. When analyzing this topic, it is necessary to consider some conditions to understand the potential benefits and risks of this step. Due to the Philippines' movement towards development, increased government spending is inevitable. This requires a source for a larger budget that can be financed by selling goods. Profit can be made from these assets if managed properly, but perhaps due to political problems and economic crisis, many of the assets are sold or proposed to be sold to private companies. According to the Department of Finance, the national government reported a budget deficit of £53.22 billion for July 2013, which in that period amounted to £197.84 billion in public spending compared to £144.62 billion of revenue that can be exhausted. This situation illustrates how the government spends a lot on different types of projects and why it ventures into privatization of its assets. Privatization also allows you to eliminate all the costs that the government has to bear in managing public services such as... middle of paper......micshelp.org/blog/501/economics/advantages-of-privatisation /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-economic-expansion-eyed/The Philippine PPP Program, The BOT Center. Department 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 tax benefits for lessees. 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