Discuss the capacity to pay by the government

Reference no: EM133626198

Case: Foreign Borrowings

You are one of the Congressmen who proposed for an increase in foreign loan borrowing. This is because of weak revenue generation, enactment of revenue-eroding measures by the Philippine Congress and recent underspending have generated concerns for the fiscal authorities. While revenue shortfalls have been manageable, they may contribute to rising deficits in the future. Should the fiscal stance become unsustainable, public expenditure may again be constrained with a corresponding negative effect on economic growth.

1. Will you consider the capacity to pay by the government or the benefits we can get?

2. As a political science student, what is your more relevant proposal?

3. What did you learn?

Reference no: EM133626198

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