Philippine government simply cannot go on a borrowing spree: Inquirer

While the government can borrow more to help the country recover from this crisis, fiscal prudence is also important.- Bloomberg

MANILA (Philippine Daily Inquirer/ANN): The government is in a financial bind. While the coronavirus pandemic has necessitated additional expenses in the tens of billions of pesos, its main revenue source -- local taxes and imposts on imports -- has been constricted by the same health crisis afflicting the globe.

Economic activity, the health of which determines the amount of taxes generated by the state, virtually stalled during the lockdown imposed on Luzon since March this year, and the slight easing of the quarantine restrictions is expected to provide only a slight relief.