Joseph Estrada,
First State of the Nation Address
“ We have a seventy-billion peso budget deficit and a consolidated public sector deficit that could go as high as ninety billion pesos. Collection on taxes and duties are down, even as more and more tax exemptions and incentives cut deep into government revenues. Government could borrow more. But that will only raise interest rates and worsen the economic slowdown. The result: less taxes and fewer jobs. If high interest rates squeeze GNP by just 2 percent more, there will be half a million more jobless. But if we pressure the Bangko Sentral to print more money, inflation will shoot up. ”
