In response to the 1983-1985 economic crisis, the Philippine government has assigned a major role to fiscal policy given its contribution to the said disaster. This paper reviews the conduct of Philippine fiscal policy in 1986-1988. It examines how the policy actions undertaken fit into the policy pronouncements embodied in the Medium-Term Development Plan. It also investigates the variations in the broad fiscal aggregates and evaluates the thrust of fiscal policy in terms of its impact on aggregate demand.
