METRO MANILA COLLEGE

U-Site, Brgy. Kaligayahan, Novaliches Q.C

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 METRO MANILA COLLEGE
U-Site, Brgy. Kaligayahan, Novaliches Q.C

Fiscal Policy, measures employed by governments to stabilize the economy,

specifically by manipulating the levels and allocations of taxes and government
expenditures. Fiscal measures are frequently used in tandem with monetary policy
to achieve certain goals.
The usual goals of both fiscal and monetary policy are to achieve or maintain full
employment, to achieve or maintain a high rate of economic growth, and to
stabilize prices and wages. The establishment of these ends as proper goals of
government economic policy and the development of tools with which to achieve
them are products of 20th century.
In taxes and expenditures, fiscal policy has for its field of action matters that are
within government’s immediate control. The consequences of such actions are
generally predictable: a decrease in personal taxation, for example, will lead to an
increase in consumption, which will in turn have a stimulating effect on the
economy. Similarly, a reduction in the tax burden on the corporate sector will
stimulate investment. Steps taken to increase government spending by public
works have a similar expansionary effect. Conversely, a reduction in government
expenditure or an increase in tax revenues, without compensatory action, has the
effect of contracting the economy.
a new set of ideas, first given formal treatment by the economist John Maynard
Keynes, revolving around the notion that fiscal policy should be used
“countercyclically,” that is, that the government should exercise its economic
influence to offset the cycle of expansion and contraction in the economy. Keynes’s
rule, briefly, was that the budget should be in deficit when the economy was
experiencing low levels of activity and in surplus when boom conditions (often
accompanied by high inflation) were in force.
Under the balanced-budget regime, personal and business tax rates were raised
during periods of declining economic activity to ensure that government revenues
were not reduced. The effect of this was to reduce consumption still further,
 METRO MANILA COLLEGE
U-Site, Brgy. Kaligayahan, Novaliches Q.C

increase surplus industrial capacity, and depress investment, all of which exerted
a downward pressure on the economy. Alternatively, if, in order to maintain a
balanced budget, taxes remained level but government expenditures were cut
back during such a period of declining economic activity, a similar downward
pressure was exerted. The Keynesian theory showed that, under
certain conditions, the operation of market forces would not automatically
generate full employment, and that governments should abandon the balanced-
budget concept and adopt active measures to stimulate the economy.
Furthermore, to be really effective, these measures should be financed by
government borrowing rather than by raising taxes or by cutting other government
expenditures.
In my own opinion the Fiscal policy the aim is to have a higher economy is to have
may employees and workers. need is to target the main goal through employees
and workers.

THE Duterte administration has a program it calls Build, Build, Build (BBB) to
accelerate infrastructure spending and develop industries that will yield robust
growth, create jobs and improve the lives of the Build! Build! Build! (BBB) Program
is the centerpiece program of the Duterte administration that aims to usher the
“Golden age of infrastructure” in the Philippines. Lack of infrastructure has long
been cited as the “Achilles’ heel” of Philippine economic development. The BBB
Program seeks to accelerate public infrastructure expenditure from an average of
2.9 percent of gross domestic product (GDP) during the Aquino regime to about
7.3 percent at the end of the Duterte administration. This will cost around P8
trillion to P9 trillion from 2016 to 2022 to address the huge infrastructure backlog
in the country.
Under the highly-ambitious program, the government is seeking to construct big-
ticket infrastructure projects, including airports, railways, bus rapid transits, roads
and bridges, and seaports in various parts of the country.
German Ambassador to the Philippines Dr. Gordon Kricke said his country can be
an ideal partner in the multi-pronged BBB program because of its excellent
reputation in infrastructure development.

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 METRO MANILA COLLEGE
U-Site, Brgy. Kaligayahan, Novaliches Q.C

Projects under the program include the Subic-Clark Railway; the North-South
railway projects connecting Los Banos, Laguna to Tutuban, Manila and Clark
Freeport in Pampanga; and a 1,500-hectare industrial park, also in Clark. People
believe that by launching the BBB program, the Duterte government is committed
to spread the benefits of economic development even right down to the far-flung
communities across the country. Thus, the offer of Germany to participate in the
program should be welcomed by all sectors of society.
The Filipino people, once again, are being asked to go to the polls to elect their
legislators and local government officials. We welcome this exercise because
electing the people who will craft and implement national and local policies is very
much part of democracy.
Unfortunately, the democratic essence of this electoral exercise is eroded in many
places by dynastic politics, the guns-and-gold patronage politics by elite families
to keep them in power. Moreover, the electoral exercise has failed—so far—to
enlighten the people about the root causes of the social and economic problems
and the policy choices and remedies needed to address these maladies. The
present electoral campaign is reduced to hollow debates on who can deliver better
public services despite the glaring reality that the country is in need of bold
systemic changes on various fronts of governance: economic, social,
environmental and political. This is aggravated by corrupt vote buying by the rich
candidates and the failure of Commission on Elections to require the candidates to
sort out in concrete details how promises of better governance and performance
can be achieved through a clear platform of change, meaning a development
program that alters the status quo and the monopoly hold of a few on the country’s
wealth.
Also, the electoral exercise has even become an excuse to cover up for the
shortcomings of the sitting government on the economy. In July 2018, no less
than President Rodrigo Duterte blurted out the truth: “The economy is in the
doldrums,” obviously referring to the failure of the economic policy regime to lift
up the situation of the poor.
For me this is very great idea but in the other side they are so may Filipinos are
uncertain in this BBB program. So, the main goal is to have a higher tax and legit
payers because our government is corrupt.
METRO MANILA COLLEGE
U-Site, Brgy. Kaligayahan, Novaliches Q.C