Matsheka secures support in race for revenue

The plans for the sweeping reforms have triggered debate through the country, with many fearing that a population already plagued by stubborn unemployment, wage stagnation and inequality will be forced to bear the burden of fiscal consolidation.

However, with the first three years of NDP 11 having burnt an P18.8 billion hole in government coffers and its traditional go-to sources of support, Matsheka was expected to take unpopular decisions. The budget revealed on Monday it carries a P5.2 billion deficit, the majority of which will be funded by further drawdowns on reserves and domestic borrowing sources, which experts have warned are reaching their limits.