Everyone seems to agree that the Philippines' present fiscal deficit is its most pressing problem at the moment. What brought this about? This Policy Notes traces the movement in the country's fiscal position, from a relatively manageable deficit level of 3.5 percent of GDP in 1990 to surpluses of less than 1 percent of GDP in 1994-1997 to a persistently rising level of 4.6 percent of GDP in 2003. The Notes also details the causes of this fix and paints a more complete picture with an examination of the country's consolidated public sector deficit. Read on...
