Abstract:

The year 2008 saw the global economy slumped into its worst state since the Depression of the 1930s, precipitated by the collapse of the US economy. Many countries, especially those whose economies are largely dependent on the US market, including the Philippines, had to grapple for immediate, workable solutions to prevent a deeper recession.

The crisis brought to the fore the countercyclical role of fiscal policy in stimulating the economy during difficult times. Government took the driver’s seat from the private sector to re-invigorate the economy through stimulus programs. These programs include accelerated spending on critical infrastructure to generate employment and domestic demand, and on social services to protect the vulnerable sectors.

The pump priming activities kept the economy from contracting. At the frontline of this favorable outcome was the Department of Finance which, as it always does, mobilized the necessary resources to sustain the momentum of the country’s economic growth. Resource mobilization during times of crisis has its own special imperatives: fund sourcing must be done with speed, yet with due regard to preserving the country’s debt sustainability. The country’s recent history of reforms has improved our credit ratings, enabling DOF to obtain resources at favorable terms.

Info

Source Institution	Department of Finance
Source URL	http://www.dof.gov.ph/wp-content/uploads/2015/07/DOF-AR-08.pdf
Page Count	40
Place of Publication	Metro Manila
Original Publication Date	January 1, 2009
Tags	Annual Report, Economy, Renewed Confidence