Dominguez gives his opinion on PH’s debt
Secretary of Finance Carlos Dominguez 3rd. CONTRIBUTED PHOTO
FINANCE Secretary Carlos Dominguez 3rd has some suggestions for how the new administration might deal with the country’s growing debt.
“Through a well-thought-out, closely coordinated and efficiently executed economic program that shields the most vulnerable from global inflationary pressures through targeted subsidies, promotes sustainable and inclusive economic growth, and maintains a sound fiscal system by increasing and eliminating wasteful spending “, did he declare. reporters Thursday night when asked how the next administration should handle the government’s mounting debt.
Data from the Treasury Office revealed that outstanding national government debt hit a new high of 12.67 trillion pesos at the end of March this year, accounting for 63.5% of the country’s gross domestic product (GDP). .
The debt-to-GDP ratio at the end of March 2022 is higher than the 60.5% recorded at the end of last year, and the highest since the 65.7% recorded in 2005. It also exceeds the international threshold of 50 % and the 60-percent cap set by the Duterte administration.
The top priority of the government, the Ministry of Finance stressed, is to reduce the country’s debt.
He said the Philippines’ debt management is closely monitored by the three major credit rating agencies, namely Fitch Ratings, Moody’s Investors Service and S&P Global Ratings.
“In the medium term, it is necessary to reduce the debt-to-GDP ratio through fiscal consolidation [narrowing the deficit] so that the Philippine economy can resume its dynamic growth,” the finance department added.
Dominguez also assured that his department “will be ready in time to brief the incoming economic team” on fiscal consolidation.