MANILA – As the Philippines’ debt soared, a group warned about the ability of the national government to pay its obligations, which it said have gone beyond sustainable levels.
In a webinar, Rovik Obanil of the Freedom from Debt Coalition (FDC) pointed out that the debt to gross domestic product (GDP) ratio of the Philippine government has exceeded 60 percent.
According to Obanil, a country’s ability to pay off its debt is best appreciated when viewed alongside the size of the economy by the debt to GDP ratio.
He added that the recent developments indicated a steep decline in the country’s ability to fund its debt obligations.
“The deteriorating debt to GDP coupled with the sharp increase in borrowings in the midst of a flattened economy called to question future sustainability,” he said.
Meanwhile, Zyza Nadine Suzara of the Institute for Leadership, Empowerment and Democracy said borrowed money should be spent on quality programs.
“Anong saysay ng nangungutang tayo. Ano ‘yung saysay na nagbabayad tayo mula sa ating taxpayers kung hindi naman napupunta sa dapat puntahan?” she asked.(GMA News)
