Its been a long time since the economic status of the Philippines was reported that its been

growing and growing as years passed. Since economics is a vital to everybodys life, people used to believe with this manner of reportage. But dissatisfaction and disappointments were the guarantees of many Filipinos who believe in this economic updates. Why? Probably because many Filipinos cannot feel or experience this so called economic upliftment. This article about Philippines Economy by Iris C. Gonzales of the Philippine Star presents a very positive view about the economic status our country will have in the next years. Its a very great thing to know that despite the economic crisis the world is facing, Philippines is overcoming this crisis by economic growth of 6-7 % next year. But this report is only an assumption and projection. Aquino administration is the ones behind this assumption so that there might some news control and manipulation. The administration might do this for political purposes that they want to prove that during this administration, economy in the Philippines is growing as compared to the previous administration. Because we all know that Pinoys advocacy is to show that he could be better than Arroyo. But, if its really true, thanks to the Administration. Philippines economy is dynamic. So that, any time it may change. I think to predict status of Philippines Economy until 2011 is a very futuristic and advance approach. We dont know what happen. We are not holding our own world. What if calamities strike our country? So, the country shouldnt be relaxed and contented with these assumptions rather work for it. But, to be honest, I felt uplifted by reading this article. Economic growth might bring lot of job opportunities for Filipinos including me. I am looking forward that I will feel this growth by means of having job opportunity for me as I enter the stage of professionalism. If we dont want to be disappointed, do not trust or base our life with this economic growth report that if it declines we will be affected. Its much better to pursue for our own economic stability and to work for our personal economic growth.

In economics and political science, fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and expenditure. Changes in the level and composition of taxation and government spending can impact the following variables in the economy: Aggregate demand and the level of economic activity; The pattern of resource allocation; The distribution of income. Fiscal policy refers to the use of the government budget to influence economic activity. Fiscal policy refers to the "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." In the Philippines, this is characterized by continuous and increasing levels of debt and budget deficits, though there have been improvements in the last few years. The Philippine governments main source of revenue is taxes, with some non-tax revenue also being collected. To finance fiscal deficit and debt, the Philippines rely on both domestic and external sources. Fiscal policy during the Marcos administration was primarily focused on indirect tax collection and on government spending on ecnomic services and infrastructure development. The first Aquino administration inherited a large fiscal deficit from the previous administration, but managed to reduce fiscal imbalance and improve tax collection through the introduction of the 1986 Tax Reform Program and the value added tax. The Ramos administration experienced budget surpluses due to substantial gains from the massive sale of government assets and strong foreign investment in its early years. However, the implementation of the 1997 Comprehensive Tax Reform Program and the onset of the Asian financial crisis resulted to a deteriorating fiscal position in the succeeding years and administrations. The Estrada administration faced a large fiscal deficit due to the decrease in tax effort and the repayment of the Ramos administrations debt to contractors and suppliers. During the Arroyo administration, the Expanded Value Added Tax Law was enacted, national debt-to-GDP ratio peaked, and underspending on public infrastructure and other capital expenditures was observed. Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment. Monetary theory provides insight into how to craft optimal monetary policy. It is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding.

Contractionary policy is intended to slow inflation in hopes of avoiding the resulting distortions and deterioration of asset values. Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing. qwerty NAGA CITY (BicolToday.com/27-June-2012) Bayan Muna Partylist Representative Teddy Casio on Tuesday (June 26) urged that the USD 1 Billion pledge as loan for the International Monetary Fund (IMF) should be lend-out instead to credit- starved micro, small and medium enterprises (SMEs) in the country, rather than prop-up some backward European struggling economies. The solon also called for reforms in the monetary system by mandating the prohibition of the President and finance officials from lending public funds to foreign banks, the International Monetary Fund (IMF), and financial institutions which will become detrimental to domestic growth and development needs. This is his sharp reaction to the USD I Billion pledge the Philippines will earmark for the IMF as its contribution to multilateral efforts in propping up some backward European economies wanting badly needed capital investment programs. The solon, belonging to the progressive bloc, urged for changes in the charter of the Bangko Sentral ng Pilipinas (BSP) banning the President and finance officials dipping into public funds for lending to other financial institutions, the IMF, and foreign banks that will prejudice domestic economic interests, especially the countrys local enterprises. Three percent (3%) interest to be earned from the IMF is miniscule compared to rates lent out to local enterprises, government agencies and local government units, said Casio in a statement sent to BicolToday.com. Casio lambasted on so-called finance wizards as hare-brained in their handiwork to gain international media mileage for the Aquino administration by dangling the USD 1 Billion pledge at the expense of the suffering Filipino masses who aspire for economic deliverance, and the cash-starved, enterprising rural Filipinos who are searching for capital. The solon took snipes on the so-called Ivy-League bright boys in the BSP, referring to those European, American-educated financial advisers who got their diplomas in Harvard, Yale, and other elite U.S. education institutions. These bright guys are secretly salivating for positions in the IMF, World Bank, and the Asian Development Bank, he stressed. He scored on the Aquino Administration that the national debt just breached the PhP 5 Trillion level early this year, meaning the country is more in debt than ever.

More than 700,000 micro, small, and medium enterprises in the country, including millions in the informal sector are so desperate in availing for credit, that they have to avail from money lenders in usurious rates, he said. The money (USD 1 B) should be lend out to our small business Fiscal administration refers to systems, structures, processes, resources, and the policy, environment, government, the inter-governmental and inter-local fiscal relations, affecting among others, the following: o the giving of allotments and grants by the national government (NG) to local government units (LGUs); o sharing of taxing powers between the NG and the LGUs, and among LGUs units; o policy on tax rates and structure; o revenue and expenditure planning; o revenue and expenditure planning; o revenue utilization and expenditure allocation; o monitoring and approval of budgets, tax ordinances and other fiscal measures; o policy on borrowing and borrowing instruments; and o appointment and supervision of local fiscal officers. Fiscal administration is the act of managing incoming and outgoing monetary transactions and budgets for governments, educational institutions, nonprofit organizations, and other public service entities. For example, local fiscal administration for a town or municipality involves receiving, budgeting, and dispersing monies to support local infrastructure. In terms of governmental administration, fiscal responsibility necessitates numerous departments or divisions to manage the large task of funding government operations. Each division or department carries responsibility for different aspects such as budgeting, reporting, collecting revenues in the form of fees and taxes or purchasing.

Constituents charge leaders, whether governmental or organizational, with establishing fiscal policy as part of their duties in relation to responsible fiscal administration. Fiscal policies are tools for the development of fiscal planning budgets, based on the receipt of anticipated funding. As fund disbursement in the form of payroll, purchases, or other expenses occur, management reports appropriate accounting information back to organizational leaders. Historical data, future revenue projections, and current budget demands determine needed adjustments. The entire process forms the basis for future fiscal administration decision making.