MANILA, Philippines — Senate President Pro Tempore Ralph Recto has filed a bill limiting the country’s national indebtness at an amount not more than 50 percent of the national Gross Domestic Product (GDP). We set it at 50 percent of GDP, with the prohibition that the national credit card shall not be maxed out,” Recto said. For 2018, the debt-to-GDP ratio stood at 41.8 percent, on a debt stock of P7.3 trillion and GDP value of P17.4 trillion, according to the senator. The national debt, however, has climbed to P7.9 trillion by May this year, and is on track of breaching the P8 trillion mark by end of this year, he added. Using 2018 debt and GDP figures, Recto explained that government was “P1.4 trillion away” from his proposed debt cap that is equivalent to half of the GDP.

Source: Philippine Daily Inquirer July 19, 2019 06:45 UTC