Govt. debts now at P12.68-T

THE PHILIPPINES’ debts has reached P12.68 trillion as of March, up by 4.8% or P586.29 billion higher than the P12.09 trillion recorded in February, according to the Bureau of the Treasury (BTr).

But acting presidential spokesperson Martin Andanar was quick to say that all of the country’s borrowings are put to good use, particularly to fund the country’s fight against the Covid-19 pandemic.

 “We assure our people that the country’s borrowings, which put the county’s outstanding debt to more than P12 trillion as of March 2022, shall be put into good use and utilized effectively and efficiently. Recent borrowings would be for our Covid-19 response and recovery and resiliency efforts. We need to sustain our country’s long-term socioeconomic growth and development,” Andanar said.

Last month, Duterte justified the country’s debt increase noting that the government has been forced to borrow money due to a lack of fund sources. He said there was nothing wrong with borrowing money, so long as there are no irregularities in government spending.

Duterte even enjoined local governments to borrow money, but reminded them to make sure that would not be used for corrupt activities.

Finance Secretary Carlos Dominguez III said the volume of borrowings accumulated due to the pandemic is understandable given the need to boost financing amidst the drop in revenues because of the lockdowns. He said the next administration will have to design policies and stick to very strict fiscal discipline to grow out of debt.

Data from the BTr showed that the government’s running debt was 69.9% sourced locally and 30.1% from foreigner sources.The BTr said the significant jump in total debt portfolio was primarily driven by higher borrowings, through the sale of government securities, to both local and foreign creditors.

Domestic debt reached P8.87 trillion, higher by P455.45 billion or 5.4% higher compared to February. The external debt was at P3.81 trillion, higher by P130.84 billion or 3.6% higher compared to the previous month, the BTr said.

The country’s foreign and domestic borrowings heightened under the Duterte administration.

Senator Panfilo Lacson has scored the Duterte government’s penchant for borrowing, but not always with the corresponding results. Lacson said that while borrowing may be necessary for the economy, the government has yet to show results of the trillions of pesos it has borrowed over the years.

“When I first became a senator in 2001, our national government’s outstanding debt was P2.88 trillion. Over the Arroyo, Aquino and Duterte administrations, it has ballooned,” he said.

Duterte had already borrowed billions of pesos since 2016 after winning the election, for his ambitious Build, Build, Build infrastructure projects and dole outs to poor families across the country. Aside from massive borrowings, Duterte also hiked taxes despite public outcry, saying he needed it to fund government more projects.

The country’s inflation also rose in April which stands at 4.9%. (Mindanao Examiner and Azer Parrocha)