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Topic : PHILIPPINE DEBT MANAGEMENT

Reporter : Criselda A. Magbanua, Lara Manalese, Bernadeth Mingao and


Mikhael Lladones
Date : October 13, 2018

Prior to the discussion relative to the Philippine Debt Management, a topic regarding
the Philippine Borrowing was reported last 22 September 2018 by Mr. Fajardo, Ms. Merza
and Ms. Cunanan. Government Borrowing is similar with the Public Debt. Public Debt refers
to “how much” or the “total amount” country owes to lenders outside itself which may include
individuals, businesses, and other government. Public Debt however has six classifications:
1) Internal/ External Debt; 2) Short/ Long Term Debt; 3) Funded and Unfunded; 4) Voluntary
and Compulsory; 5) Redeemable and Irredeemable; and 6) Productive and Unproductive.

The Philippines, as of 14 June 2018, has an external debt servicing in the amount of
$73.2 Billion. How does it manage its debt? Through an inter-agency effort called the
Development Budget Coordinating Committee (DBCC). DBCC is composed of DBM
Secretary as Chairperson, Department of Finance as Co-Chairperson and Executive
Secretary of the Cabinet and Director General of NEDA as members. DBCC approves the
macroeconomic assumptions and economic directions for the preparation of the annual
national government budget and the requirements of the government’s medium term
development plan. Specifically, DBCC recommends the level of the annual government
expenditure program and the ceiling on government spending for social and economic
development, national defense, general government and debt service. Also, it recommends
the proper allocation of expenditures for development activity between current operating
expenditures and capital outlay. Further, it recommends the allocation for capital outlay
under each development activity for the various capital or infrastructure projects.

Along with the inter-agency continued effort in managing the Philippine Budget, Tax
Reform was also implemented to provide economic support specifically in paying public
debts. Though the Comprehensive Tax Reform Program (CTRP) and the Tax Reform for
Acceleration and Inclusion (TRAIN) only aims to sustain the stream of revenues to
materialized the government’s mission and vision for a poverty reduction, it causes higher
bills and expenses to which the ordinary Filipinos are most affected. I acknowledge the effort
undertaken by the administration, however, they should also strictly implement its CTRP and
TRAIN to the businessmen, rich and wealthy ones.

RATING: 1.5

Submitted by:

JEREMIAH ANN R. MENSURADO, LPT


miahmensurado@gmail.com
09394347409

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