The Philippine government went on a borrowing spree to support its pandemic response and make up for the plummeting revenues at the height of the coronavirus crisis. For 2020 alone, its gross borrowings — which does not include all the payments made during the period — hit P2.74 trillion, matching the P2.757 trillion debt incurred from 2017 to 2019.
In this B-Side episode, Alvin P. Ang, a professor at the economics department of the Ateneo de Manila University, speaks with BusinessWorld reporter Beatrice M. Laforga about the government’s rising debt and its impact on the economy.
"I think the next government will still have to borrow because this is not a usual crisis. What they need is to spend as much as possible on health, on building our capacities and increase confidence once again," Mr. Ang said. "The government is the only entity that can really help the private sector and the consumers to get back into their groove of what they're supposed to do."
This episode was recorded remotely on May 13. Produced by Paolo L. Lopez and Sam L. Marcelo.
