Friday, August 17, 2007 WB official support Arroyo's fiscal reforms By Carlo P. Mallo
FISCAL reforms being pushed by the Arroyo administration have very ambitious targets, but nonetheless ought to be supported.
A World Bank (WB) executive said Wednesday that more action from the government must be done to achieve a more ideal distribution of income in the country.
WB country director Jehan Arulpragasam said the Philippines, though considered as a lower middle income country, is doing well in its economic growth.
But he was quick to add that aside from improving the economy, the government must also prioritize the improvement of the welfare of the poor.
Arulpragasam was in Davao City Wednesday for the inauguration of the WB-funded Knowledge for Development Center at the state-run University of Southeastern Philippines.
"We are working together with the government for the alleviation of poverty in the country," the WB executive said.
"The economic growth of the country must be shared, to be felt by all sectors," Arulpragasam said.
Moreover, he added that the Arroyo administration must be lauded for its fiscal reforms in the past three years.
"Though (the government) has very ambitious targets, it was able to reverse the economic situation of the country," Arulpragasam said.
The Arroyo administration suffered heavy criticism due to its aggressive fiscal reforms in the past three years. One of which is the implementation of the expanded-value added tax or E-Vat.
But amid criticisms, the Arroyo administration boasted that they were able to minimize the budget deficit with the E-Vat and that they are on target in achieving a balanced budget by year 2010.
