MANILA, Philippines — The national government’s total outstanding debt remains within sustainable levels, Malacañang said yesterday, as it emphasized that borrowings were used to bankroll vital programs aimed at growing the economy.
In a recent statement, the Department of Finance (DOF) reported that the national government’s total outstanding debt stood at P16.75 trillion as of the end of April.
The agency said it has made improvements to the Philippines’ debt statistics by cutting the national government-to-gross domestic product (GDP) ratio to 60.7 percent last year through a “prudent debt management strategy.”
“According to our Department of Finance, we are still within the sustainable level because the international threshold for the debt-to-GDP ratio is 70 percent,” Presidential Communications Undersecretary Claire Castro said at a press briefing.
“We used (the borrowings) for growth enhancing investments like infrastructure, education, agriculture, health and social services,” the Palace press officer added.
Castro said the Marcos administration has been providing assistance to farmers, fisherfolk and other sectors.
The DOF said the present administration inherited a P12.79-trillion debt from the previous administration when it assumed office three years ago.
The national government continues to manage the large debt by growing the economy faster, the DOF added.