The Asian Development Bank (ADB) warned yesterday that the Philippines could face economic instability unless it tackles its growing budget deficit and improves revenue collection.
The bank said despite moderate growth in recent years, averaging 4.7 percent to 5.7 percent, unemployment remains high and investments have faltered as the deficit, projected at 197.8 billion pesos (US$35 billion) this year, hampers higher growth rates.
"The grave fiscal situation -- caused mainly by weak revenue mobilization -- dominates macro-economic management and, if not urgently addressed, has the potential to cause economic instability," ADB country director Thomas Crouch and economist Xuelin Liu said in the bank's annual economic review.
The ADB joined economists and international credit rating agencies in raising concern over the country's growing debt of 3.36 trillion pesos and the govern-ment's ability to push through tax reform measures needed to narrow the fiscal gap.
While the ADB said Manila will achieve its budget deficit target for this year, it noted that the country remains susceptible to international interest rate hikes and poor market sentiment due to its increasing reliance on borrowing money to finance development spending.
President Gloria Macapagal Arroyo has envisaged a balanced budget by 2010 through eight tax measures that would raise an additional 80 billion pesos and steps that would yield another 100 billion pesos a year.
``Things are looking up in the economy,'' Arroyo said yesterday, noting 6.3 percent growth in the third quarter of this year. ``We will push this higher and do better in 2005.''
Meanwhile, the Senate announced yesterday that it had passed a bill raising taxes on tobacco and liquor products -- the first step in Arroyo's effort to control the budget deficit and debt levels. The so-called "sin tax" will generate 18 billion pesos in revenues by next year, Senate President Franklin Drilon said.
The "sin tax" law is the centerpiece of eight tax measures sought by Arroyo to enable the government to avoid a debt default in three years.
Nvidia Corp yesterday unveiled its new high-speed interconnect technology, NVLink Fusion, with Taiwanese application-specific IC (ASIC) designers Alchip Technologies Ltd (世芯) and MediaTek Inc (聯發科) among the first to adopt the technology to help build semi-custom artificial intelligence (AI) infrastructure for hyperscalers. Nvidia has opened its technology to outside users, as hyperscalers and cloud service providers are building their own cost-effective AI chips, or accelerators, used in AI servers by leveraging ASIC firms’ designing capabilities to reduce their dependence on Nvidia. Previously, NVLink technology was only available for Nvidia’s own AI platform. “NVLink Fusion opens Nvidia’s AI platform and rich ecosystem for
WARNING: From Jan. 1 last year to the end of last month, 89 Taiwanese have gone missing or been detained in China, the MAC said, urging people to carefully consider travel to China Lax enforcement had made virtually moot regulations banning civil servants from making unauthorized visits to China, the Control Yuan said yesterday. Several agencies allowed personnel to travel to China after they submitted explanations for the trip written using artificial intelligence or provided no reason at all, the Control Yuan said in a statement, following an investigation headed by Control Yuan member Lin Wen-cheng (林文程). The probe identified 318 civil servants who traveled to China without permission in the past 10 years, but the true number could be close to 1,000, the Control Yuan said. The public employees investigated were not engaged in national
CAUSE AND EFFECT: China’s policies prompted the US to increase its presence in the Indo-Pacific, and Beijing should consider if this outcome is in its best interests, Lai said China has been escalating its military and political pressure on Taiwan for many years, but should reflect on this strategy and think about what is really in its best interest, President William Lai (賴清德) said. Lai made the remark in a YouTube interview with Mindi World News that was broadcast on Saturday, ahead of the first anniversary of his presidential inauguration tomorrow. The US has clearly stated that China is its biggest challenge and threat, with US President Donald Trump and US Secretary of Defense Pete Hegseth repeatedly saying that the US should increase its forces in the Indo-Pacific region
ALL TOGETHER: Only by including Taiwan can the WHA fully exemplify its commitment to ‘One World for Health,’ the representative offices of eight nations in Taiwan said The representative offices in Taiwan of eight nations yesterday issued a joint statement reiterating their support for Taiwan’s meaningful engagement with the WHO and for Taipei’s participation as an observer at the World Health Assembly (WHA). The joint statement came as Taiwan has not received an invitation to this year’s WHA, which started yesterday and runs until Tuesday next week. This year’s meeting of the decisionmaking body of the WHO in Geneva, Switzerland, would be the ninth consecutive year Taiwan has been excluded. The eight offices, which reaffirmed their support for Taiwan, are the British Office Taipei, the Australian Office Taipei, the
RSS