During the presidency of Mrs. Arroyo, the Philippine economy grew steadily averaging at around 4.

5
percent annually, however our budget deficit needed some fixing. Hence, the economic policies Mrs.
Arroyo instituted. Like many policies, some were welcomed with open arms, others were like bitter pills
to swallow, but were needed nonetheless.

1. For starters, the Filipinos enjoyed the “holiday economics” or in legalese, Republic Act 9492 or An Act
Rationalizing the Celebration of National Holidays. For Mrs. Arroyo, adjusting a holiday to form longer
weekends will stimulate local tourism and help create work-school-life balance for families. When there
are longer holidays, people tend to spend it at their favorite local destinations, boosting tourism and, in
effect, supporting more economic activities. While this did not sit well with some businesses, it did help
the promotion of tourism in the country.

The language of business and economics may be gruesome for others, but not for Mrs. Arroyo, who was
10 steps ahead especially when the economy is on the line.

2. During her presidency she established a blueprint called the Capital Market Development Plan. The
capital market, where financial securities are traded, such as bonds and everyone’s favorite — stocks —
did help in raising funds for long-term investments.

Mrs. Arroyo, mindful that financial stability is synonymous to growth and development, pushed for the
creation of this blueprint. She also supported other related and equally important legislations such as
the PERA or the Personal Equity and Retirement Account.

3. The PERA is a voluntary retirement contribution program enacted into law in 2008.

4. Probably the most controversial, and yet, significant economic reform Mrs. Arroyo supported was the
E-VAT, which she signed into law in 2005. The Philippines’ budget deficit was staggering, more so our
rising debt, given the predicaments in the early years of previous administrations. Something must be
done immediately to keep the economy afloat and to lessen its exacerbation. Hence the Extended
Value-Added Tax Law or the E-VAT.

Taxes were increased for products such as alcohol and cigarettes and previously tax-exempt
commodities were taxed. A hard pill to swallow for many and adversely received by the population, this
piece of legislation shielded the economy from the global financial crisis in 2008.
5. Total outstanding debt of the Philippines has decreased resulting to the improved credit ratings and
outlook for the country and more fiscal space that can help in improving the lives of the people and
providing important socio-economic programs for inclusive growth.