Drilon urges gov't to borrow more for COVID-19 response

Senate Minority Leader Franklin Drilon urged the government to borrow more funds to sustain its COVID-19 response and stimulate the economy due to declining tax collections.

Drilon stated that increasing borrowings is necessary to provide stimulus to citizens and revive the economy, even at the risk of losing the country's credit rating.

He emphasized that the current financial standing is insufficient to cope with the ongoing pandemic, which is far from over.

The Department of Finance (DOF) disclosed that COVID-19-related borrowings have reached $4.83 billion from four international agencies, including the Asian Development Bank ($2.6 billion), World Bank ($1.2 billion), Asian Infrastructure Investment Bank ($750 million), and Agence Française de Développement ($275.7 million).

Drilon highlighted that the government's willingness to borrow more, particularly the DOF, is crucial since no collections are being made.

He believes the government should leverage its good credit standing to access available global credit financing facilities to navigate the crisis.

The senator stressed that borrowing is essential for survival during this pandemic and that the nation should not be ashamed to do so to help its citizens and frontliners.