1.

Discuss the causes of public borrowing

The total amount of money that a nation's national government has borrowed to pay for its
spending on public services and benefits is known as public borrowing. The government must
finance a portion of the costs associated with these projects. A government that borrows money
also avoids the one-time high tax burden that such payments would entail. Public borrowing is
frequently used in recessionary times to boost investment, employment, and consumption
because it is generally thought to have an inflationary effect on the economy. To summarize, the
causes of public borrowing are: 1. To finance expenditures and public projects; 2. Due to its
inflationary effect on the economy to stimulate investment, employment, and consumption; and
3. To meet temporary needs, as when estimated revenue falls below or is exceeded by
estimated expenditures.

2. Impact of Philippine debt to economy growth

High public debt can negatively affect capital stock accumulation and economic growth via
heightened long-term interest rates, higher distortionary tax rates, inflation, and a general
constraint on countercyclical fiscal policies, which may lead to increased volatility and growth
rates.

3. Give 3 Structural Adjustment Policies and discuss how it affects the poor people.

Some examples of Structural Adjustment Policies include cutting public sector employment,
subsidies, and other spending to reduce budget deficits, privatizing state-owned enterprises and
deregulating state-controlled industries, and easing regulations in order to attract investment by
foreign businesses.

Detractors of structural adjustment policies contend that the free-market approaches are
frequently inappropriate for developing economies and result in slower economic growth and
greater inequality.