- January 31, 2018
- Posted by: admin
- Category: Daily News
- The Department of Finance on 31 Jan 18 assured the public that although the Duterte administration’s ambitious infrastructure program might stoke an increase in government debt, robust economic expansion brought by better infrastructure would “outrun the growth of debt.”
- The Bureau of Treasury recently reported that national government debt ended 2017 at a record PHP6.652tr, up 9.2% from 2016, though debt as a proportion of the country’s gross domestic product remained steady.
- The DOF said the 9.2% surge in debt stock was due to increase in domestic debt following the issuance of retail treasury bonds in 4Q17. As it plans to ramp up spending, particularly on infrastructure, the national government is programmed to borrow PHP889.51bn in 2018 from local and foreign lenders.
- Of the amount, 26% will come from foreign creditors, while the remaining 74% will be borrowed domestically.
- The Duterte administration has set an PHP8.44tr infrastructure spending plan until 2022 to spur gross domestic product growth to 7-8% starting from 2018 from a targeted 6.5-7.5% in 2017.
- The Development Budget Coordination Committee projects a 90% probability that the debt-to-GDP ratio will settle below 43.9% by 2022, and a 50% likelihood it will stay between 36-41.4%.