Follow us for updates
© 2022 reportr.world
Read the Story →

P3.3 Trillion Debt Planned in COVID Year 2021, Finance Chief Explains

Where's the money?
Mar 22, 2021
A policeman inspects a car at a checkpoint in Las Pinas City on March 22, 2021, the first day of the quarantine bubble in Metro Manila, Bulacan, Laguna, Rizal and Cavite.
Photo/s: Jerome Ascano
Shares

The Philippines plans to borrow P3.3 trillion this year to fund its COVID-19 response and keep the entire government running, the head of President Rodrigo Duterte's economic team said Monday.

The 2021 borrowings is "a little more" than the P2.7 trillion in 2020 and P1 trillion in 2019, said Finance Secretary Carlos Dominguez, whom the President asked to explain how government funds were being spent during the pandemic.

"Revenues went down because of the lockdown and our expenditures went up because of COVID so we had to borow more money," Dominguez said.

ALSO READ:

Daily COVID Tally Crosses 8,000-Mark, a First for Philippines

GCQ Bubble vs GCQ vs MECQ: What's the Difference?

The government borrows money every year because it finances a deficit, meaning it does not collect enough money from taxes to fund the national budget. The borrowings plug that shortfall.

Dominguez said this was the "base explanation" he gave to senators who questioned how the budget was being spent. He said he could provide a more detailed response if necessary.

ADVERTISEMENT - CONTINUE READING BELOW ↓

The finance chief said P82.5 billion was budgeted for vaccine procurement. Duterte said the money was not being held in cash and is instead kept in banks, ready to be wired to manufacturers on delivery.

"Hindi yan pumunta kay Sonny Dominguez, binuksan ang drawer eto na ang bayad," he said.

ALSO READ:

GCQ Bubble: Here are the Rules on Public Transport

NCR Plus is Trending as Philippines Falls in World Happiness Index

Staycations Allowed in GCQ Bubble with Age Restrictions, Says DOT

The Philippine economy is in its deepest recession since World War II as COVID-19 shut many businesses and left millions jobless in 2020.

A resurgent coronavirus is threatening the recovery as Metro Manila, Bulacan, Laguna, Rizal and Cavite were placed under a strict GCQ bubble until April 4.

ADVERTISEMENT - CONTINUE READING BELOW ↓
Recommended Videos
Latest Headlines
Read Next
Recent News
With the reopening of several local destinations, this app has never been more timely.
It could hit Isabela, Cagayan, Northern Aurora area.
Philippine president also meets with UK, Japan leaders.
The news. So what? Subscribe to the newsletter that explains what the news means for you.
The email address you entered is invalid.
Thank you for signing up to On Three, reportr's weekly newsletter delivered to your mailbox three times a week. Only the latest, most useful and most insightful reads.
By signing up to reportr.world newsletter, you agree to our Terms of Service and Privacy Policy.