ISAGUNDE, RICA JEAN MACRO-ACT02

BSED SOCSTUD 2A JUNE 02, 2021

PART 1: ANSWER THE FOLLOWING AND USE PLAGIARISM CHECKER FOR

THE ACTIVITIES.

1. DEFINE FISCAL POLICY AND STATE ITS IMPORTANCE IN STABILIZING THE

ECONOMY.

The "means adopted by governments to stabilize the economy, especially

through changing the amounts and allocations of taxes and government
expenditures," is referred to as fiscal policy. To attain particular aims, fiscal policy is
commonly employed in conjunction with monetary policy. In the Philippines, this is
characterized by rising debt levels and budget deficits, however there have been
some improvements in recent years.

2. HOW IS FISCAL POLICY REFLECTED ON THE SYSTEM OF OUR

GOVERNMENT? EXPLAIN AND GIVE AT LEAST TWO EXAMPLES.

The theories of British economist John Maynard Keynes underpin fiscal policy.
This theory, often known as Keynesian economics, holds that governments may
affect macroeconomic productivity levels by altering tax rates and public
expenditures. This impact, in turn, reduces inflation (which is generally regarded to be
healthy when it is between 2% and 3%), boosts employment, and keeps money at a
healthy value. The economy relies heavily on fiscal policy. In 2012, for example,
many people were concerned that the fiscal cliff, which would result in a simultaneous
increase in tax rates and reductions in government expenditure in January 2013,
would push the US economy back into recession. On January 1, 2013, the United
States Congress passed the American Taxpayer Relief Act of 2012, which avoided
this difficulty.
3. CHOOSE ONE PRESIDENT OF THE PHILIPPINES (EXCEPT THE PRESENT
ADMINISTRATION) AND DISCUSS HIS/HER ECONOMIC/FISCAL POLICIES AND
ITS IMPLICATION IN THE COUNTRY (LIMIT YOUR ANSWER TO TWO POLICIES
ONLY).

Since it was mainly reliant on indirect taxes, the tax system under Marcos'
presidency was largely regressive. Direct taxes accounted for just 25% of overall tax
income, while indirect taxes and foreign trade taxes accounted for over 35%. During
this time, government spending on economic services peaked, with roughly 33% of
the budget going to capital outlays, mostly for infrastructure construction. The
government grew increasingly reliant on local borrowing to pay the fiscal deficit as
global interest rates increased and the peso fell in value. During this time, the
government began to liberalize tariff policy by enacting the initial Tariff Reform
Program, which narrowed the tariff structure from 100 percent -0 percent to 50
percent -10 percent, and the Import Liberalization Program, which aimed to reduce or
eliminate tariffs and realign indirect taxes.

PART 2: ANALYSIS OF AN ECONOMIC OR BUSINESS ARTICLE

DIRECTIONS:
A. CHOOSE ONE ECONOMIC OR BUSINESS ARTICLE FROM THE FOLLOWING
ONLINE SOURCES: THE ENTREPRENEUR, THE ECONOMIST, ASIAWEEK,
NEWSWEEK, AND OTHER BUSINESS AND ECONOMIC ONLINE MAGAZINES.
(STRICTLY NO NEWSPAPER ARTICLES, BROAD SHEETS, OR TABLOIDS.)
B. WRITE THE SUMMARY OF THE ARTICLE.

TRACKING THE ECONOMIC IMPACT OF INDIA’S SECOND COVID WAVE

Damage may already be seen from space. Rivers shift course, woods catch
fire, and glaciers melt: Raj Bhagat Palanichamy of the World Resources Institute
India, a research center, has used satellite photos to track all of these damages to
India's terrain. He's been trying to map a new form of harm for the past year, locating
infection hotspots, marking hospital beds, and cross-checking official death tolls by
scrutinizing infrared photos of crematoria fires..

The death toll from India's second wave of infections is tough to overlook, but
difficult to quantify. The April-June GDP numbers will not be available until the end of
August. As a result, nontraditional economic metrics including power use, cell phone
data, and space vistas have piqued attention.India's night-time lights dimmed by 5.6
percent compared to a year earlier in March last year, according to a World Bank
report. Prime Minister Narendra Modi imposed a severe statewide lockdown. By May
2020, India's light had dimming by 10% by May 2020. In March 2021, 31 of
Maharashtra's 36 districts (including Mumbai) shined even less brilliantly than a year
before.

The economy's prospects for the remainder of the year are contingent on how
the epidemic develops and how the government acts. Mr Modi has delegated
authority to the states to choose how and when gathering restrictions would be
reinstated. Tallying up the many forms of limitations, such as school closures or event
cancellations, is one approach. Another option is to utilize smartphone data to track
customers' decreased mobility.

Lockdowns now, according to Goldman analysts, damage the economy less

than identical lockdowns a year ago, since firms and consumers have evolved. They
forecast that if India's limitations stay at their current level for the next three months,
economic activity will be 2.9 percent lower than it was the previous three months.
Even if the epidemic eventually abates, GDP might still be significantly higher this
year than it was last year. But that tells as much about the horrors of 2020 as it does
about the remainder of 2021's chances.

C. LASTLY, WRITE YOUR REACTION/CRITIQUE ABOUT THE ARTICLE.

The second COVID wave in India might shave 2.8 percentage points off GDP
growth in fiscal 2022, derailing what had been a promising rebound in the economy,
profitability, and credit indicators in the first half of the year.

The epidemic brought uncertainty and ramifications for many facets of global
business. Despite the fact that India is ahead of other nations in terms of being able
to adopt work-from-home policies, particularly in white collar jobs, job and earnings
shortages, as well as pricing volatility, were foreseen. The months of the lockdown
resulted in a massive drop in employment, which only gradually stabilized once the
economy in most sections of the country regained its footing.

Due to low vaccination rates and increased exposure to highly infectious

COVID strains, this illness wave might peak as late as June, wreaking havoc on
credit and funding conditions.The government is responding to the new epidemic by
enacting a series of regional lockdowns rather than a statewide lockdown, which
would have greater negative economic consequences.

When analyzing the Indian context, the COVID-19 implications will be the most
severe when compared to other countries. In terms of controlling the pandemic crisis,
India's social framework is complicated. It is obvious that any civilization with a large
social difference would suffer the most unfavorable consequences.The negative effects
on the family, communities, nations, regions, and the globe cause them to regress in
any socioeconomic or political field. Illnesses or COVID-19, pandemic situations,
deaths, social distancing, curfews, and the lock-down of the entire functional
mechanism of a single society and the global network in production, trade, supply chain
networks, transportation, social networking, and political network are just a few
examples of factors that have negative consequences. As a result, depending on the
scenario in early April 2020, this article has paid equal emphasis to COVID-19's
detrimental effects on the local, regional, and global levels.
REFERENCES:

Amadeo, K. (2021, May 10). What Is Fiscal Policy? The Balance.

https://www.thebalance.com/what-is-fiscal-policy-types-objectives-and-tools-
3305844.

Business Standard. (n.d.). What is Fiscal policy, Fiscal policy Definition, Fiscal policy
News. Business Standard. https://www.business-standard.com/about/what-is-
fiscal-policy.

The Economist Newspaper. (2021). Tracking the economic impact of India's second
covid wave. The Economist. https://www.economist.com/finance-and-
economics/2021/05/01/tracking-the-economic-impact-of-indias-second-covid-
wave.

Karunathilake, K. (2020, September 2). Positive and negative impacts of COVID-19, an

analysis with special reference to challenges on the supply chain in South Asian
countries. Journal of Social and Economic Development.
https://link.springer.com/article/10.1007/s40847-020-00107-z.

Punongbayan, J. C. (2020, September 23). [ANALYSIS] Marcos and Duterte's

economic crises: How do they compare? Rappler.
https://www.rappler.com/voices/thought-leaders/analysis-marcos-duterte-
economic-crises-how-do-they-compare.

Tan, E. (2021). Second COVID Wave May Derail India's Budding Recovery. Second
COVID Wave May Derail India's Budding Recovery | S&P Global Ratings.
https://www.spglobal.com/ratings/en/research/articles/210505-second-covid-wave-
may-derail-india-s-budding-recovery-11942315.

World Health Organization. (n.d.). Impact of COVID-19 on people's livelihoods, their

health and our food systems. World Health Organization.
https://www.who.int/news/item/13-10-2020-impact-of-covid-19-on-people's-
livelihoods-their-health-and-our-food-systems.
PLAGIARISM CHECKER: