MANILA, Philippines — Alarm bells were rang over a yawning budget deficit that is only set to widen this year, but the economic impact of additional spending springing from it appears to be nearly nil that puts into question whether government is spending on the right priorities. As you see, our projected fiscal deficit has already increased,” Dominguez told reporters on Tuesday evening. Borrowing costs are also at record-lows, thanks to central bank stimulus, prompting observers including those from the legislature to ask the Executive for a much compelling pandemic response. By next year, the deficit would also stay elevated at 7.7% of GDP, up from 7.4% initially, indicating the some spending boost would remain. In short, the economy will underperform even with more fiscal stimulus supposedly doing the reverse.

Source: Philippine Star May 19, 2021 05:03 UTC