Duterte defends government borrowings, says revenue collection insufficient

MANILA, Philippines — President Duterte has defended government borrowings, saying revenue collection is not sufficient to fund various programs.

Duterte made the remark in a speech in Lapu-Lapu City last Thursday as the country’s debt rose to P12.09 trillion as of end of February.

“The government is like a house. Now, my salary is just this, but my house needs – the roof is leaking – or you need another house. You don’t have money, then you borrow,” he said.

The President stressed the need to borrow, saying the money would also be used to finance big-ticket projects.

“There is no government in this world without debt… You borrow money if the taxes – if it’s not enough for our needs. Then when we want to pursue big projects, just like bridges,” he said.

There is nothing wrong with borrowing money as long as there are no irregularities in government spending, according to Duterte.

“It’s not bad to borrow. Even local governments, you can borrow, just be sure there is no corruption. I will approve anything there as long as it is for the good of the Filipino people. If it’s in our interest to do it, then go ahead. I have no problem with it,” he said.

The Bureau of Treasury had earlier said the total outstanding debt of P12.09 trillion was up 12.6 percent year-on-year – P63 billion higher than last January’s P12.03 trillion and the first time overall borrowings went past P12 trillion.