By Ruth Abbey Gita-Carlos / Philippine News Agency
President Rodrigo Duterte on Thursday (Nov. 4) said he is grateful that the Philippines can still apply for loans despite the economic situation in the country amid the prevailing COVID-19 pandemic.
“Mabuti naman ‘yung mga loan natin. Until now, the international financial world continues to have a support [for us],” Duterte said in a speech delivered in Puerto Princesa City.
Duterte made the remarks as he admitted that before serving the country as the chief executive, he had “no idea of the economic picture of the country.”
He said it is “good” to know that the Philippines can still borrow money, as it will help the country recover from the effects of the pandemic.
“Suportado sa atin despite our convoluted economic problems now. Mayroon pa rin silang tiwala. So, maganda ‘yan,” Duterte said.
The Philippines’ debt grew to P11.92 trillion as of end-September, the Bureau of Treasury (BTr) reported in October.
The country’s latest outstanding debt stock climbed by 2.4% from P11.64 trillion in August and 27% from P9.37 trillion in 2020.
Around 70.4% was sourced from domestic creditors, while the remaining 29.6% was held by foreign banks.
The BTr said the month-on-month increase was “due to net issuance of both domestic and external debt and peso depreciation against the US dollar.”
The Philippine government plans to borrow P3.07 trillion this year, based on the Department of Budget and Management’s Budget of Expenditures and Sources of Financing for fiscal year 2021.
The P3.07-trillion programmed gross borrowings for this year were meant to cover a budget deficit that is expected to expand to 9.3% of gross domestic product at P1.85 trillion.
Also in October, the BTr reported a 17.5% year-on-year jump in government expenditures last September to P412.4 billion, higher than the 8.96% rise in revenues to P231.4 billion.
This resulted in a 30.6% jump in the budget gap to P180.9 billion, bringing the first nine month’s budget deficit to P1.139 billion, lower than the P1.425-trillion programmed for the period. (PNA) – jlo
