PH debt-servicing ‘well managed,’ says DBM chief

FILE PHOTO: Budget Secretary Amenah Pangandaman. (Photo from the Facebook account of the Department of Budget and Management)

MANILA, Philippines —  The Phlippines’ debt-servicing is “well managed” with most of the budget still allocated for public services, Budget Secretary Amenah Pangandaman said in a statement on Tuesday.

Debt servicing refers to the total budget required for the government to pay back all debt obligations including the principal and interest of loans.

“Debt servicing shall not hamper the implementation of the government’s priority programs and projects,” Pangandaman said in a statement. “It is well-managed.”

Pangandaman added that the country’s debt servicing  was “expected to stabilize and decline over the near term.”

This is in line with the plan of President Ferdinand Marcos Jr. to reduce the government debt-to-GDP ratio of 51.1 percent.

The House of Representatives formally received on Monday the proposed P5.268 trillion national budget from the Department of Budget and Management.

According to Pangandaman, the fiscal year 2023 National Expenditure Program only allocates 11 percent — or P582 billion — for interest payments of the nation’s debt, while almost 90 percent are alloted for government services.

“The much bigger remaining part of the budget, which is almost 90 percent, are available for the delivery of public services, programs and projects, which comprises economic and social expenditures, personnel services and general public services,” she pointed out.

“Allow us to note that debt incurred in recent years has been put into good use, such as on productive investments in infrastructure and human capital, as well as in recovery and health programs amid the pandemic. Debts incurred for the realization of projects are not plain and simple government expenses. They are investments that are made for the purpose of realizing a minimum required economic return,” she continued.

RELATED STORIES

Nearly a third of P5.3-trillion budget to pay for debts

House formally receives proposed 2023 budget from DBM

atm