Philippines: Report for the July 2004 Post-Program Monitoring Discussions
IMF Staff Country Reports, October 3, 2004
Source details
- Canonical URL
- Philippines: Report for the July 2004 Post-Program Monitoring Discussions
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Bibliographic details
- Published: October 3, 2004
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451831320.002
Executive summary
- Focus: 2004 Post Program Monitoring Discussions for the Philippines.
- Authorities are formulating a significant package of tax measures.
- IMF staff recommendation: the bulk of the additional revenues should be saved, thereby front-loading the medium-term deficit reduction effort.
- Rationale: front-loading deficit reduction would boost market confidence and exploit the likely greater potential to enact tax measures at the beginning of the new administration’s term.
- Authorities are also considering power sector reforms.
Key findings and policy recommendations
- Findings:
- A significant package of tax measures was being formulated by the authorities in 2004.
- IMF staff argued for saving the bulk of additional revenues from those measures.
- The timing—beginning of the new administration’s term—was highlighted as a window with greater potential to enact tax measures.
- Power sector reforms were under consideration by the authorities.
- Policy recommendations:
- Front-load the medium-term deficit reduction effort by saving the bulk of additional revenues from the tax package.
- Use saved revenues to boost market confidence.
- Pursue power sector reforms as part of the broader adjustment strategy.
Subjects and keywords
- Subject: Administration in revenue administration, Economic sectors, External debt, Public debt, Public sector, Tariffs, Taxes, Value added tax
- Keywords: Asia and Pacific, authorities definition, CR, Eastern Europe, economy, GDP outturn, Global, government, inflation outlook, ISCR, Middle East, policy, Policy adjustment, policy blueprint, Public sector, rate, Tariffs, Value-added tax