Borrowed money

Gov’t borrowings

August 20, 2023 People's Tonight 188 views

AWARE of the country’s limited financial resources, well-meaning people, including the poor, support the national government’s decision to borrow money even from foreign countries.

Like many Pinoys, we believe that there’s nothing wrong with government borrowings as long as the funds are earmarked to productive use.

Thus, we commend Secretary Amenah Pangandaman of the Department of Budget and Management (DBM) for assuring that projects would be consistent with the government’s plans.

Note that the administration of President Marcos is pursuing an “Eight-Point Socio-Economic Agenda” and the multi-pronged “Philippine Development Plan of 2023-2028.”

And last Saturday, no less than the Chief Presidential Legal Counsel – Juan Ponce Enrile – said that all governments, including the United States and China – have budget deficits.

“Wala akong alam na gobyerno…na walang utang. Panay deficit lahat ‘yan,” said Enrile, who served as defense secretary of the late President Ferdinand Edralin Marcos.

But unlike other countries, the highly-articulate Enrile, a former member of the Philippine Senate, said government authorities are trying to address the government deficit.

Under the Marcos administration ‘s 2022-2028 Medium-Term Fiscal Framework (MTFF), the national government aims to lower its debt-to-GDP and deficit-to-GDP.

At the height of the coronavirus disease (COVID-19) pandemic, the Philippines had a huge debt to finance various programs and projects aimed at addressing the problem.

At malaki ang naitulong ng mga programang ito para matagumpay nating madaig ang pandemya.

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