Diokno to prioritize fiscal consolidation to lower debt ratios

Incoming Finance Secretary Benjamin Diokno plans to prioritize fiscal consolidation to lower the debt and deficit-to-GDP ratios.

Diokno, with over 30 years of experience, believes the Philippines is in a better economic position now compared to past crises, citing debt-to-GDP ratios close to 100% in the past.

The Philippines' debt-to-GDP ratio is currently at 63.5%, exceeding the international benchmark of 60%.

An additional P3.2 trillion in debt is expected by the end of 2022, potentially bringing the total debt level to P13.1 trillion.

Diokno views the current debt-to-GDP ratio as manageable if the country sustains a growth rate of six to seven percent.

He aims to reassure stakeholders of the government's commitment to fiscal consolidation and reducing debt and deficit ratios.