Fiscal crisis awaits next president, warn economists
Posted by akosistella on April 14, 2010
MANILA, Philippines — The country’s next president will face the daunting task of running an economy with near empty government coffers while pushing for crucial and unpopular reform programs, according to some of the country’s leading economic minds.
More importantly, whoever the next president would be must ram these reform measures through Congress early in his term if he were to avoid having to contend with populist lawmakers, professors at the UP School of Economics said on Wednesday.
“The next president will inherit a system that is nearing fiscal collapse,” economist Benjamin Diokno said at an Ayala Corp.-sponsored forum, titled “Elections 2010: The Morning After (Economic Issues for the Next President).
“He will have to make some choices that are hard, and some that are harder,” he added.
Diokno, who served as budget secretary under the abbreviated Estrada presidency, said the next administration would also have to broaden the tax base and increase tax revenues to support economic growth.