Nationwide alert level 1 could boost the gov’t finances in 2022
Moving all areas in the Philippines to Alert Level 1 could help improve the government’s finances for the rest of 2022, said Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort.
In an interview, Ricafort explained that any measures to reopen the economy “would further help improve/increase the government’s tax revenue collections and also help curb the growth in government spending, especially on various Covid programs for the coming months/years.”
He added that this move would also help “narrow the country’s budget deficit and help also temper the growth in the government’s debt stock.”
However, Ricafort warned that this effort towards normalcy could be countered by the increase in fuel subsidies for the transport and agricultural sectors, as well as a lower tariff on imported food, such as fish, rice, and meat.
For now, Acting Deputy Presidential Spokesperson Kris Ablan announced that Metro Manila, along with other key areas in the Philippines, will remain under Alert Level 1 until June 15.
Meanwhile, the Cordillera, CARAGA, BARMM, and 10 other regions would remain under Alert Level 2 from June 1 to 15.
