Senator Chiz Escudero has urged the Marcos administration’s economic managers to increase the gross domestic product (GDP) moving forward in order to maintain the country’s debt-to-GDP ratio at a manageable level.
During Monday’s plenary session, the veteran legislator cited the need to explore all possibilities to maintain the debt-to-GDP ratio as he made the manifestation on the floor before the Senate approved and ratified the bicameral conference committee report on the 2024 National Budget.
Escudero noted that during the six years of the Duterte administration and the first six months of President Marcos’ term, the Philippines recorded some Php13.6-T debt in 2023.
If the country’s borrowing is Php2.3-T per year, he said, by the end of Marcos administration in 2028, which starts with a Php13.6-T debt, it will balloon to Php27.4-T.
“In 2023, we borrowed Php2.2-T; in 2024 we are slated to borrow Php2.4-T. If we average our borrowing for the next four years halfway at Php2.3-T per year, by the end of President Marcos’s term in 2028, our debt which stood at Php13.6-T will be Php27.4-T. That means, if we are to maintain a 60-percent debt-to-GDP ratio, our GDP, Mr. President, should double by 2028,” Escudero told Senate President Juan Miguel Zubiri.
“I hope we will keep that in mind as we go through the next four years and approve the budget for the succeeding years, so that we have always at the back of our mind every possibility to increase our GDP, not only for our debt-to-GDP ratio to remain at a manageable 60 percent but also to ensure that the quality of life of the Filipinos will continue to improve as we continue on increasing our indebtedness as well,” Escudero explained.