Manila: Acting Budget Secretary Kim Robert de Leon emphasized on Friday that the Philippines' trillion-peso debt is manageable, provided borrowings are utilized effectively. Speaking at an economic forum at the Bangko Sentral ng Pilipinas, De Leon assured that debt is not inherently problematic as long as it serves the right purposes and does not compromise essential government programs and services.

According to Philippines News Agency, as of June, the nation's outstanding debt amounted to PHP19.07 trillion. De Leon reiterated that the government plans to allocate the borrowed funds towards priority programs, especially major infrastructure projects aimed at fostering economic growth. Highlighted projects include the Metro Manila Subway, the Metro Rail Transit Line 3 Rehabilitation Project, and the North-South Commuter Railway Project. These infrastructure initiatives are anticipated to attract further investments and contribute to economic development.

De Leon stressed that government initiatives are not merely expenses but are designed to yield economic returns. He noted that borrowing would continue until the government can generate adequate resources to address infrastructure and development gaps. Once completed, these projects are expected to benefit the populace by enticing more businesses to invest in the Philippines, thereby promoting development and growth.

The government forecasts revenues of PHP5.2 trillion by 2027 and intends to allocate PHP6.9 trillion from the proposed PHP7.2 trillion national budget. This revenue shortfall is projected to result in a PHP1.7-trillion deficit, which the government plans to finance through borrowing.

De Leon assured that the nation's debt level remains manageable and is expected to decrease over the medium term. "Our economic managers have affirmed that the level of the Philippines' debt is manageable, with the debt-to-GDP ratio targeted to decline over the medium term," he stated.