Gov’t can pay P11.071-T debt
While the national debt appears huge, it remains at a mid-range level compared to other low- and middle-income countries, including those in Latin America
Malacañang on Tuesday downplayed the country’s new record-high P11.071-trillion debt, saying the government can pay for it.
Presidential spokesperson Secretary Harry Roque said that while the national
debt appears huge, it remains at a “mid-range” level compared to other low-and middle-income countries, including those in Latin America.
“Our economic team headed by Finance Secretary Carlos Dominguez has been very conservative about our debt,” he said in a televised briefing.
“That looks huge, but we are at the mid-range (level). And there is no problem when it comes to our ability to pay,” Roque added.
He did not elaborate, but the government’s economists have repeatedly expressed optimism that the country would recover from the pandemic with the gradual reopening of businesses and the rollout of the state’s vaccination program.
Meanwhile, Roque said the Palace has disbursed all of the P141.6 billion funds earmarked under the Bayanihan to Recover as One Act or Bayanihan 2.
Citing data from Budget Secretary Wendel Avisado, Roque made the assurance in response to Vice President Leni Robredo’s criticisms on the government’s supposed failure to spend over P6 billion Bayanihan 2 funds.
“All of the funds under Bayanihan 2 have been released to line agencies. As of now, I am not able to confirm if there are unused funds because the line agencies are given until 15 July to report back to the Department of Budget and Management,” he said.
Our economic team headed by Finance Secretary Carlos Dominguez has been very conservative about our debt.
The Palace official also appealed to Vice President Leni Robredo to withhold making conclusions until the report is released.
Robredo earlier said that it was “disappointing” to see such a large amount of money not being used when many could have benefited from it.
“I ask the Vice President, who is an economist, please let’s wait for data before we make conclusions,” Roque said.
The Philippines, which battles one of Asia’s worst coronavirus outbreaks with over 1.45 million infections, has been borrowing heavily to finance its pandemic response and the administration’s infrastructure program.
Data from the Bureau of the Treasury, the principal custodian of the financial assets of the national government, showed that the government’s debt stock as of end-May soared to P11.071 trillion from last year’s P8.89 trillion, up by 24.5 percent.
Of the total debt, 28.5 percent were foreign borrowings, while 71.5 percent were domestic borrowings.
The country’s domestic debt reached P7.9 trillion in May, which was P103.37 billion or 1.3 percent higher compared to the end of April.
On the other hand, foreign debt decreased from P3.155 trillion to P23.56 billion due to the P28.58-billion impact of the Philippine peso appreciation against the US dollar and the net repayment of P0.22 billion worth of foreign loans.
The current national debt means that 110.8 million Filipinos owe creditors about P99,000 each.