MANILA – President Rodrigo Duterte stated on Thursday that the Philippine government has been obliged to borrow money due to a shortage of available funds.
As of end-February, the country’s outstanding debt had risen to PHP12.09 trillion, according to Duterte.
Duterte emphasized in a speech held in Lapu-Lapu City the need for government borrowings, stating the money would be utilized to fund large-scale projects.
“The government is like a house. Ngayon, ang sweldo ko, ganito lang (Now, my salary is just this much), pero (but) my house needs [repair]. The roof is leaking o (or) you need another balay (house). Wala kay kwarta (You have no money), then you borrow,” he said during the joint meeting of the National and Regional Task Forces to End Local Communist Armed Conflict.
Duterte claimed that his administration had no choice because income collection was insufficient.
The government, like private companies, must borrow to prevent “collapsing,” he stated.
“‘Yung iba kasi ‘pag sabihin, utang nang utang. Walang gobyerno sa mundong ito na walang utang. Because ‘pag maghinto ako ng utang at kinulang ‘yung taxes nakolekta ko (Some are saying we keep on borrowing money. Every government in this world has debt. If the tax collection is not enough), I have to borrow money,” Duterte said. “If it’s not enough for our needs, then tapos may gusto kang gawing big projects anang tulay (then we want to pursue big projects like bridges).
Duterte stated that borrowing money is fine as long as there are no irregularities in government expenditures.
He even encouraged local governments to borrow money, but warned them to ensure that it was not utilized for dishonest purposes.
“It’s not bad to borrow. Maski kayong mga local government, makahiram kayo, just be sure na ‘yung corruption, tignan lang ninyo na (Local governments can even borrow, just be sure there is no corruption). It is not … I will approve anything there basta (as long as it is) for the good of Filipino people. If it’s in our interest to do it, then go ahead. Wala akong problema (I have no problem with it),” Duterte said.
According to the data released by the Bureau of Treasury (BTr) on Thursday, the country’s debt pile as of end-February was 0.5 percent, or PHP63.83 billion, higher than the PHP12.029 billion recorded as of end-January.
The increase in the Philippines’ debt was caused by “currency fluctuations and net financing from both domestic and external sources,” the BTr said in a statement.
Domestic borrowings accounted for approximately 69.6 percent, or PHP8.41 trillion, of the government’s PHP12.09 trillion debt, with the remaining 30.4 percent, or PHP3.68 trillion, sourced externally.
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