President Rodrigo Duterte said the Philippine government has been forced to borrow money due to a lack of fund sources.
Duterte gave the explanation, as the country’s outstanding debt rose to P12.09 trillion, as of end-February.
In a speech delivered in Lapu-Lapu City, Duterte stressed the need for government borrowings, saying the money would be used to finance big-ticket 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 said his administration was left with no choice since revenue collection is not sufficient.
Just like the private companies, the government has to borrow to avoid “collapsing,” he said.
“‘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 said there was nothing wrong with borrowing money, so long as there are no irregularities in government spending.
He even enjoined local governments to borrow money but reminded them to make sure that would not be used for corrupt activities.
“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.
The country’s debt pile as of end-February was 0.5 percent or P63.83 billion higher than the P12.029 billion recorded as of end-January, according to the data released by the Bureau of Treasury (BTr).
The surge in the Philippines’ debt was due to “currency fluctuations and net financing from both local and external sources,” the BTr said in a statement.
Around 69.6 percent or P8.41 trillion of the government’s P12.09-trillion debt were domestic borrowings, while the remaining 30.4 percent or P3.68 trillion were sourced externally.PNA
