drbubb Posted May 29, 2017 Report Share Posted May 29, 2017 DEBT: PH on bumpy path back to Debt woes? Maybe not! Actually, the PH's external Debt-to-GDP ratio has improved in recent years. But some feel this will not last, and the PH may be set to overspend, and borrow too much. (Personally, I am less worried... I think it helps that people are talking about this risk.) History - but not up to date This number, below 30% is far better than many countries Another source, with different figures: Govt Debt to GDP - shows declines also A worried article appeared in today's --- PH Inquirer / Inquirer.net Red flags on government debt - Commentary, Eduardo C. Tadem "The Philippines is to go on a borrowing binge from 2017 onwards to fund a massive infrastructure program estimated to cost $167 Billion (P8.5 trillion) over 10 years..." Various Asian countries are offering PH big loans to fund this spending: ========== China : $15 bn for large scale infrastructure projects + $3 bn from Bank of Chna' Japan : $8.1 bn - in official loans and private investments ADB - : $100mn for feasibility studies, and $770mn for water-related projects Within the DU30 admin, Budget secretary Benjamin Diokno has argued than only 20% would be funded externally, with the 80% to be funded from domestic sources The writer wants borrowing to benefit "poor and marginalized sectors of the population" He regards as "illegitimate": "debts that only benefit the rich and properties classes." Hmm. I agree that the impact on all sectors should be examined. But doesn't improved infrastructure; better roads, rail and transport benefit everyone? And a better functioning infrastructure INSIDE the country can help make it easier for the growing demand in areas like metro Manila and Cebu etc., to be serviced from domestic sources and domestic manufacturers, rather than from foreign imports Link to comment Share on other sites More sharing options...
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