Escudero: Increase GDP targets to manage debt

Senator Francis Escudero on Tuesday urged the country's economic managers under the Marcos administration to increase the Philippine gross domestic product to maintain the "debt-to-GDP" ratio at a manageable level.

In a Senate plenary, Escudero cited the need for the government to explore all possibilities to maintain the debt-to-GDP ratio.

The senator previously made the manifestation before the Senate's approval and ratification of the bicameral conference committee report on the 2024 national budget.

Escudero noted that during the six years of the Duterte administration and the first six months of President Marcos' term, the Philippines has recorded some P13.6 trillion in debt in 2023.

He warned that the country's debt may balloon to P27.4 trillion should the country borrowing P2.3 trillion per year if the country borrowing is P2.3 trillion per year,— by the end of Marcos administration in 2028, which starts with a P13.6-trillion debt,

"In 2023, we borrowed P2.2 trillion; in 2024 we are slated to borrow P2.4 trillion. If we average our borrowing for the next four years halfway at P2.3 trillion per year, by the end of President Marcos's term in 2028, our debt which stood at P13.6 trillion will be P27.4 trillion," he explained.

Escudero said the GDP will double by 2028 if the Philippines will maintain a 60-percent debt-to-GDP ratio.

"I hope we will keep that in mind as we go through the next four years and approve the budget for the succeeding years, so that we have always at the back of our mind every possibility to increase our GDP, so not only for our debt-to-GDP ratio to remain at a manageable 60 percent but also to ensure that the quality of life of the Filipinos will continue to improve as we continue increasing our indebtedness as well," he said.