MANILA, Philippines — The Philippines’ debt is still under control, said National Economic and Development Authority (Neda) Secretary Arsenio Balisacan on Thursday.
Government debt hit a record high of P15.18 trillion in February due to larger local borrowings and higher interest rates. Shortly after this announcement, the government announced a revised target gross domestic product (GDP) of 6 to 7 percent, previously at 6.5 to 7.5 percent.
READ: Gov’t debt hit record high P15.18 trillion in February
When asked during a Palace briefing if the revised target has anything to do with the record-high debt, Balisacan replied, “No.”
“We continue the earlier plan to get that debt as a proportion of GDP decreasing, although we have to recast it in a way that is realistic and at the same time, sustainable,” said Balisacan.
“We are actually in a very good position. The rule of thumb for emerging economies is 70 percent of GDP is there, that is the threshold ‘no. We are moving from 60 percent to a way below 60 to even lower ‘no, of 55 – almost about 56 percent by the time we end the term of the current President. So, we are not only way below the threshold, but we also would want to decrease that further,” said Balisacan.
Balisacan said that the government projected a lower deficit to GDP rate from 5.6 percent in 2024 to 3.7 percent by 2028. This would lead to a debt-to-GDP ratio of 60.3 percent in 2024 and 55.9 percent by 2028.
