Experts explain why
Reports of new loan issuances over the past months have been met with much trepidation online, compounding the already widespread anxiety caused by news of rising COVID case counts, mounting business closures, and soaring unemployment.
The COVID-19 pandemic has imposed severe fiscal strain on public coffers, leading many to worry that all this borrowing and spending will deplete state funds and place the country in dire economic straits.
But does the Philippines really face a looming debt problem?
In this article, we explain why government borrowing, although not without risks, isn’t inherently problematic. Many times, and especially during times of crisis, it is necessary and even beneficial. READ MORE
P83,239: Each Filipino’s share of P9.05T debt as of end-June
Each of the estimated 108.7 million Filipinos carries the burden of paying the national government’s growing debt, which amounted to a new record-high of P9.05 trillion as of June which means if we wanted to pay now, each of us must shell out P83,239.
The government has been increasingly relying on debt to finance the rising costs of the health and socioeconomic crises caused by the COVID-19 pandemic.READ MORE