Fiscal policy

from 1946 to present

Mermida, Lea Mae V.
 What is fiscal policy?

 is the use of government spending and taxation

to influence the economy. Governments typically
use fiscal policy to promote strong and sustainable
growth and reduce poverty.
 TYPES OF FISCAL POLICY

Contractionary Expansionary
• Used to slow economic growth • Designed to stimulate the
economy
WORLD WAR II
The impact of the War on
the Philippine Economy
was effectively desperate,
as Manila, the capital, was
razed to the ground while
the rest of the Philippines
was relatively untouched.
MANUEL ROXAS

As the first President of the third republic

of the Philippines, the country was already
paralyzed because of a war just ended.
-On 1949 the economic situation was so
problematic
- Low production
- Decreasing job availability
- Weak education system
Elpidio Quirino
The momentum for
economic growth came
during his time through
the implementation of
import and exchange
controls that lead to
import substitution
development.
-New tax measures were also passed, which
included higher corporate tax rates that increased
government revenues-tax.
-revenue in 1953 increased two fold compared to
1948
Ramon Magsaysay Carlos Garcia Diosdado Macapagal
*Promised to study the tax structure and policy of the country
(through the creation of a tax commission in 1959 by means of RA.
2211).
-The period of the post-war Republic also saw a rise in
corruption.
-from 1959-1968, the congress did not pass any tax
legislation despite important changes in economy.
Indirect taxation still contributed to the quarters of tax
revenues.
 Ferdinand Marcos Sr.

During the President Marcos authoritarian

regime, the tax remained regressive.
During the latter part of the Marcos years
(1981-1985), the tax system was still
heavily dependent on indirect taxes,
which made up of 70% of total tax
collection.
Corazon Aquino

As Corazon Aquino took the

helm of the government after
the EDSA Revolution. She
reformed the tax system
through the 1986 Tax Reform
Program.
AIM TO SIMPLIFY THE TAX SYSTEM,
MAKE REVENUES MORE REPONSIVE TO
ECONOMIC ACTIVITY, PROMOTE
HORIZONTAL EQUITY AND PROMOTE
GROWTH BY CORRECTING EXISTING
TAXES