GOV’T DEBT TO HIT P10.16 TRILLION
The government’s debt at the end of the year is seen to hit P10.16 trillion, which funded its budgetary deficit and in response to the COVID-19 pandemic, but which is still manageable, according to the Department of Finance.
In a report before the House Appropriations Committee, Finance Secretary Carlos Dominguez III said that the 2020 borrowings would translate to 53.9 percent of the debt to Gross Domestic Product (GDP) ratio, which is still lower than the 2004 debt-to-GDP level, considered the highest the country had incurred.
For next year, the government is borrowing P3.03 trillion and by 2021, the debt-to-GDP ratio would translate to 58.1 percent.
“The projections are still lower when compared to the country’s all time high debt level of 71.6 percent of GDP in 2004,” Dominguez said.
This year, the budget deficit is seen to widen to P1.82 trillion or 9.6 percent of the gross domestic product due to COVID-19.
For 2020, the Philippines is programmed to raise P3 trillion from borrowings, bulk or P2.22 trillion of which will come from domestic sources. The remaining P785.61 billion will be sourced from external lenders.