MANILA, Philippines – Philippines secured loans and grants totaling $10. 94 billion (more than 529 billion pesos) in August to fund its fight against physical fitness and socioeconomic crises in the coronavirus pandemic.
Neda stated that 16 loans and 3 grants were recent additions to the ODA’s expanding portfolio “to government efforts to combat the COVID-19 pandemic and mitigate its economic impact. “
According to the 2021 budget documents, the government will borrow more than 3 trillion P3s this year and an amount next to finance the growing budget deficit, while spending on the reaction to COVID-19 has soared while tax and non-fiscal revenues have remained. Under.
Three-quarters of the borrowing will come from the sale of government securities in the country, while the issuance of offshore debt and external loans will strengthen the financing of the national budget by 4. 5 trillion pesos in 2021.
As a result, the national government’s remarkable debt will rise to a record 10. 16 trillion pesos by the end of 2020 and to 11. 98 trillion pesos by 2021.
The increase in loans will raise the debt-to-GDP ratio from 39. 6% in 2019 to 53. 9% by the end of 2020 and to 58. 3% next year.
Chua told the Inquirer on Monday that it would be up to the Ministry of Finance (DOF) to determine whether this would be the right time to impose new taxes or a rising tax in the midst of a pandemic recession.
Last month, COVID-19-related loans included the following Asian Development Bank (ADB) budget financing:
$200 million social protection support project (second additional funding).
$400 million for infrastructure financing generated through money markets (subprogramme 1).
An expanded social program of $500 million.
In August alone, AfDB approved 3 loans to its host country: a $ 400 million competitive and inclusive agricultural progression program (subprogram 1), an inclusive $ 300 million finance progression program (subprogram 2) and an improved $ 125 million fitness formula and restrict the COVID-19 (Heal) project.
The Philippines borrowed $500 million from the World Bank for a third crisis control progression policy loan; $500 million in loans for COVID-19 emergency response development policies; $200 million in the Social Protection Reform and Development Project 2 (additional funding).
In addition to these budget loans, the Philippines has obtained two Allocation Loans from the World Bank: $100 million for the COVID-19 emergency reaction allocation, as well as $370 million for land fragmentation for the Individual Securitisation Project (Split).
The Philippines borrowed $750 million from the Asian Infrastructure Investment Bank, which co-finances AfDB’s CARES program.
Among bilateral aid agencies, the French Development Agency awarded $165. 42 million to strengthen personal participation in the infrastructure programme (subprogramme 2). This, in addition to the $110. 28 million allocated to the inclusive financial progression program (subprogramme 1), co-financed with the ADB.
Japan’s International Cooperation Agency has $458. 95 million in COVID-19 emergency reaction loans.
By 2020, the BAfD will lend $4. 2 billion to the Philippines.
The chairman of the House Media and Referees Committee said Monday that the Philippines remains in a healthy monetary position despite new loans and subsidies.
Albay’s representative Joey Salceda said it was a smart sign that the government spent more on a low-interest environment.
“ODO loans sometimes have very long maturities and very low interest rates. Given the global low-interest environment, everything is going well, even if we have a deficit of more than 10% of GDP this year,” he told the Inquirer.
He said he would be more involved if the government spent very little because it would mean losing opportunities to make significant public investments despite the world’s low interest rates.
“Of course, ethical attention is even more urgent. People are hungry and it would be ethical to let other people suffer while our lines of credit are open and cheap. As for the ratings of our credits, we do not run any real threat of down revisions. “even if we increase deficit spending levels, as long as we can keep them manageable,” Salceda said.
Responding to considerations about how cash would be spent, the House leader noted that Congress has oversight powers, “and we will exercise those powers when necessary. “
“Right now, we’re a long way from spending beyond our means,” he said. “The executive has been limited in terms of deficit spending. “
He said Neda’s acting secretary, Chua, was right “in principle. “
“With a DJ Yap
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