LATEST PUBLICATIONS
BRAc RN 2021-01
Shedding Light on Bank Deposits in Philippine Provinces
PB2021-10
Modernizing VAT in the Digital Economy
PB2021-09
Nature-Based Policies Towards Green Recovery: Mitigating the Impacts of Climate Change and Future Disease Outbreaks
NEDA 12 2020-01
Regional Development Council XII Accomplishment Report CY 2020

LATEST AV MATERIALS
PIDS WB 2021-1104
Assessing the Philippines' Performance in Meeting the ASEAN Economic Community Vision 2025
PIDS WB 2021-1103
Examining The Health Impacts Of The COVID-19 Pandemic In The Philippines
ILS-AVP-01
ILS 30th Anniversary Video
PIDS WB 2021-1102
Evaluating the Pantawid Pamilyang Pilipino Program's Payment System
Publication Detail
DP 2004-26: Fiscal Reform Agenda: Getting Ready for the Bumpy Ride Ahead

The paper traces the roots of the present fiscal problem and concludes that it is largely attributable to the deterioration of the national government’s revenue effort. On the other hand, because the government relied heavily on across-the-board budget cuts in order to maintain some semblance of fiscal control in the face of a persistent decline in revenue performance, investments in physical and human capital suffered the brunt of the adjustment. At the same time, the study points out that it is not enough to focus on the fiscal position of the national government and highlights the need to look at the complete fiscal picture by examining more closely the consolidated public sector deficit. The fiscal deficit of nonfinancial public sector has been rising steeply (from 0.6% of GDP in 1996 to over 7% of GDP in 2003) largely on account of government-owned and/or controlled corporations (GOCCs). In turn, outstanding debt of the nonfinancial public sector rose persistently from 75.4 percent of GDP in 1996 to 105.0 percent as of end of September 2003. The study then proceeds to outline the key elements of a fiscal reform agenda: tax policy and tax administration reform, public expenditure management reform, and GOCC reform. It points out that the burden of the adjustment should rest on the revenue side. At the same time, any further attempt to cut government expenditure in the aggregate is likely to be counterproductive. This does not mean, however, that reforms are not needed on the expenditure side. With or without a fiscal problem, reforms in public expenditure management are essential in ensuring that government gets the biggest bang out of every peso that it spends. In this regard, minimizing waste and curbing corruption should be on top of the agenda. The paper then spells out in some detail the needed reforms in each of the three areas. A big part of the paper is devoted to an evaluation of the many new tax measures that have been proposed to date.

Philippine Institute for Development Studies
Authors Keywords
Manasan, Rosario G.; fiscal deficit; tax effort; public expenditure management; GOCC reform; consolidated public sector;
Download PDF Number of Downloads
Published in 2004 and available in the PIDS Library or Downloaded 1,201 times since November 25, 2011
×
Please let us know your reason for downloading this publication. May we also ask you to provide additional information that will help us serve you better? Rest assured that your answers will not be shared with any outside parties. It will take you only two minutes to complete the survey. You will answer the profile questions only once as long as you enter the same email address. Thank you.


To use as reference:
If others, (Please specify):
Name: (optional)
Email: (required, but will not display; please use the same email address when downloading another publication so that the profile questions will not appear)
Age:
Gender:
If Prefer to self-describe, please specify:
Level of Education:
Occupation:
If employed either part-time or full-time, name of office:
If others, (Please specify):
Would you like to receive the SERP-P UPDATES e-newsletter? Yes No
Use the space below if you have any comment about this publication or SERP-P knowledge resources in general.