Added Title
DLSU-AKI Policy Briefs 2023-06-002
Document Type
Policy Brief
Publication Date
6-2023
Place of Publication
DLSU-Angelo King Institute, Room 223, LS building, 2401 Taft Avenue, Manila 0922
Abstract
A few weeks ago, the author attended a presentation on the Philippine economy and prospects for 2023. A discussant from the Department of Finance indicated that the Administration aims at reducing the fiscal deficit from 8.6 percent of gross domestic product in 2021 (the result of the COVID pandemic) to 3 percent by 2028. She referred to this reduction as “solid fiscal management” that “will promote long-term growth". This article argues that this is a dubious target because the government cannot control the deficit. Moreover, claiming that this reduction will promote long-term growth is poor economics. So is the idea of “fiscal responsibility” based on the false premises that sovereign governments have limited financial resources (operate with financial constraints) or that they risk “running out of money.”
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Recommended Citation
Felipe, J. (2023). The Administration’s Objective to Reduce the Fiscal Deficit to 3% of GDP by 2028: Why and how?. Retrieved from https://animorepository.dlsu.edu.ph/res_aki/95
Disciplines
Growth and Development | Work, Economy and Organizations
Keywords
Philippines; Economy; Fiscal Management; GDP; Growth
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