Reducing spending and public debt, raising credit ratings

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Rethinking Fiscal Policy Reducing Spending, Raising Credit Ratings

As we approach 2025, it is essential to reevaluate our fiscal policies and prioritize reducing spending and public debt. In this blog post, I will explore why fiscal prudence is crucial for achieving long-term economic stability and growth.

The Imperative for Reform

On October 27, I attended the 2025 Fiscal Policy Conference organized by the Department of Budget and Management (DBM) at the UP College of Law. The event brought together experts from various fields to discuss the importance of sound fiscal policy in shaping our country's economic future.

The Consequences of Inaction

When a country fails to manage its finances effectively, it can lead to severe consequences. High levels of public debt can cause interest rates to skyrocket, making it increasingly difficult to borrow money. This, in turn, can stifle economic growth and limit the government's ability to invest in vital infrastructure and social programs.

The Power of Digitalization

In today's digital age, governments must leverage technology to streamline their financial operations and improve fiscal management. By embracing process innovations and digitalization, countries can reduce inefficiencies, minimize waste, and optimize resource allocation.

For instance, the Department of Finance (DoF) has been at the forefront of implementing digital solutions to improve tax collection and reduce corruption. Undersecretary Renato Reside, Jr.'s presentation on Digitalization and Process Innovations highlighted the DoF's efforts to modernize its systems and procedures.

The Pathway to Fiscal Sustainability

So, what are the key steps towards achieving fiscal sustainability? Firstly, governments must prioritize reducing spending by identifying areas where they can cut costs without compromising essential services. Secondly, they must work towards reducing public debt by implementing policies that promote economic growth and stability.

To achieve this, policymakers must be willing to make tough decisions and take a long-term view of their country's financial future. By doing so, they can ensure that their economy remains resilient and adaptable in the face of global challenges.

Conclusion

In conclusion, reducing spending and public debt are critical steps towards achieving success in 2025. By embracing digitalization and process innovations, governments can improve their financial management and set themselves on a path towards fiscal sustainability.

As we look to the future, it is essential that we prioritize prudence and discipline in our financial decision-making. By doing so, we can build an economy that is strong, resilient, and capable of delivering prosperity for all citizens.

Keywords Fiscal policy, public debt, credit ratings, digitalization, process innovations

Edward Lance Arellano Lorilla

CEO / Co-Founder

Enjoy the little things in life. For one day, you may look back and realize they were the big things. Many of life's failures are people who did not realize how close they were to success when they gave up.