Finance Secretary Benjamin Diokno said over the weekend the implementation of prudential measures would help bring down the government’s debt-to-GDP
The debt-to-GDP ratio calculates the country’s public debt as a percentage of its gross domestic product. It allows finance managers to determine the capacity of a country to settle its debt, including principal amortization and interest payments.
“The economic team will ensure that the debt-to-GDP ratio will be below 60 percent by 2025, if not earlier, through the following measures: adherence to the fiscal consolidation program of reducing the deficit gradually from 6.1 percent this year to 5.1 percent next year and 4.1 percent in 2025 to slow down the accumulation of debt,” he said.
“The contribution of these investments is not limited to the government’s direct participation in the economy, but also because improving our human and physical capital are likely to improve our chances of attracting foreign capital,” he said. “An aggressive and well-managed Maharlika will help grow our GDP and reduce the pressure on the government to support growth through the budget,” Diokno said.Data showed that in the first semester of 2023, revenues grew by 7.7 percent, exceeding the target of P1.8 trillion for the period by 2.7 percent or by P49.2 billion.