FISCAL YEAR

-The impact of the war on the Philippine economy was effectively disparate. Manila was razed to the
ground while the rest of the Philippines was relatively untouched.

-The U.S. may have declared the Philippines independent, but as the country needed rehabilitation from
the U.S., the dependency of the Philippines to the Americans was an opportunity to be taken advantage.

-The economic situation was so problematic in year 1949.

-There was severe lack of funds in many aspects of governance such as the military and education
sectors.

-No efforts were made to improve tax collection and the U.S. advised the adoption of direct taxation.

ELPIDIO QUIRINO

-The impetus of economic growth came during the time of President Elpidio Quirino through the
implementation of import and exchange controls.

-This policy allowed expansion of viable manufacturing sector that reduced economic dependence on
imports.

-New tax measures were also passed, includes corporate tax rates that increased government revenues.

MAGSAYSAY, GARCIA, MACAPAGAL

-While succeeding presidencies of Magsaysay, Garcia and Macapagal promised to study the tax structure
and policy of the country to make way for more robust and efficient tax collection scheme, post-war
fiscal policy remained regressive.

-it gives burden to lower class while the landed elite who held business interests were in Congress to
ensure that taxes will not be levied to them.

-The period of the post-war republic saw a rise in corruption.

-From 1959-1968, Congress did not pass any tax legislation, which resulted to the interests of Filipino
businessmen in Congress manifest in many instances such as rejection of taxes on imports.

-Omnibus Tax Law of 1969 did not increase the ratio of income tax to general tax revenue.

-Collection of taxes remained poor, tax structure is still problematic and much of public funds were lost
to corruption which led government incapable of funding projects toward development.