Added Title

DLSU-AKI Policy Briefs 2023-06-002

Document Type

Policy Brief

Publication Date


Place of Publication

DLSU-Angelo King Institute, Room 223, LS building, 2401 Taft Avenue, Manila 0922


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.”



Growth and Development | Work, Economy and Organizations


Philippines; Economy; Fiscal Management; GDP; Growth

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