Global General
Philippine govt mulls exit strategy to limit fiscal deficit
(Xinhua)
Updated: 2010-03-22 15:29
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MANILA - The Philippine government may need to gradually withdraw the fiscal stimulus to limit the huge fiscal deficit, a senior economic manager said Monday.
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The national government has set aside 100 billion pesos ($2.2 billion) ?for fiscal stmulus this year to ensure that the economy would grow by as much as 3.6 percent. While this is lower than last year's 330 billion pesos ($7.2 billion) fiscal stimulus package, Teves said the impact of the flood of liquidity in the system should hopefully render future stimulus spending unnecessary.
The national government incurred a deficit equal to 3.9 percent of GDP last year or 298.5 billion pesos ($6.5 billion). For this year, the government is expecting to limit the deficit to 293 billion pesos ($6.4 billion) or equivalent to 3.5 percent of the GDP.
