Finance Secretary Carlos Dominguez III has assured that despite increased borrowing due to the pandemic, the Philippines' debt remains manageable and affordable.

Finance Secretary Carlos Dominguez III has assured that despite increased borrowing due to the pandemic, the Philippines' debt remains manageable and affordable.

In a pre-State of the Nation Address forum, Dominguez stated that the government is eyeing to borrow up to 50% of the GDP to fund its COVID-19 response initiatives. This is an increase from the 39 percent debt-to-GDP ratio in 2019.

The Department of Finance (DOF) reported that state borrowings reached PHP1.22 trillion in the first four months of 2020, with around PHP982 billion sourced domestically through treasury bills and bonds and a PHP300-billion short-term loan from the Bangko Sentral ng Pilipinas.

Dominguez emphasized the need for fiscal prudence and sustainability as the government borrows more to fund healthcare, social protection, and other essential programs amid the pandemic. He stressed that loans are not free money and must be managed carefully to avoid unmanageable debt in the future.