Fiscal policy – refers to the use of government spending and taxation to influence the economy.

Governments typically use fiscal policy to promote strong and sustainable growth and reduce poverty.

 1970s – Nation Government Expenditures and taxation were each less than 10% of the GNP
 Marcos Regime – Total expenditures increased to 15-17% of the GNP
 1986 – Under the Aquino administration, a tax reform program was formulated
 1987 & 1988 – Government expenditures rose above 20%
 1989 – 43.9% of the government budget went into debt servicing