Don’t fear purposeful PH debt, says DBM
MANILA, Philippines — Purposeful debt incurred by the national government need not be feared, Department of Budget and Management acting Secretary Tina Rose Canda said Thursday.
The country’s debt reached P12.68 trillion as of March, data from the Bureau of the Treasury showed.
“Ang utang kasi hindi dapat katakutan kung halimbawa may dahilan kung bakit tayo nangutang,” Canda said in a Laging Handa public briefing when asked for an explanation why the administration needs to loan.
(Debt should not be feared if there is a reason why we got into debt.)
She then noted the hurdles that the country faced when COVID-19 hit, citing the lack of isolation facilities and hospital beds.
“Hindi naman natin pwede isakripisyo ang buhay ng ating mga kababayan dahil ayaw nating mangutang,” the official justified.
(We cannot sacrifice the lives of our fellow Filipinos just because we do not want to borrow money.)
“So, ang karamihan ng utang na ‘yan ay dahil sa pagsagot doon sa problema ng COVID, nung mga health issues, ‘yung mga ating sinalo,” she continued.
(So, most of the loans are for responding to COVID-19 and health issues.)
Canda said the government will look for ways to pay the country’s debts such as increasing taxes and fully opening the economy.
“Well as mentioned earlier, pwedeng itaas ang buwis (we can increase the taxes),” she said.
“Pangalawa, pwede mong siguruhin na buksan ang ekonomiya dahil kung mas maraming taong may sweldo or may mga trabaho, ibig sabihin niyan mas malaki ang magiging kita ng gobyerno dahil gagastos ‘yung mga taong may mga sweldo at saka may matatanggap na kita sa pagpasok sa opisina o sa trabaho,” she further explained.
(Second, we can open the economy because if there are many people who have an income or job, it means that the government will receive more because workers will spend money.)
In May, the Department of Finance recommended new and higher taxes to service the country’s record debt.
However, Senate Majority Leader Juan Miguel Zubiri said raising taxes is not yet among the priority measures of the incoming administration of president-elect Ferdinand “Bongbong” Marcos Jr.
