PH Debt declines by 1.
67% in March | 02 May 2024
• As of March 2024, the national government’s total outstanding debt decreased by
1.67% to PHP14.93 trillion due to the net redemption of domestic government
securities
• The BTr said that of the total debt, 68.86% is domestic debt while 31.14% is external
debt. Domestic debt of PHP10.28 trillion declined by 2.83% because of the
PHP299.45 billion net redemption of government securities offsetting the PHP0.24
billion effect of peso depreciation on foreign currency domestic debt
• External debt, on the other hand, reached PHP4.65 trillion, up by 1% from the
February level. The increase was attributed to the net availment of foreign loans
amounting to PHP44.01 billion, as well as local currency depreciation, which added
to the valuation of US dollar-denominated debt by PHP7.05 billion
GOCC’s dividend remittance bumped up to 75% of earnings | 03 May 2024
• Finance Secretary Ralph Recto increased the dividend rate remittance of
government-owned and controlled corporations (GOCCs) from their net earnings to
75 percent from the minimum of 50 percent
• “We are looking for ways to increase revenues without new taxes,”
• The Dividends Law of 1994 mandates all GOCCs to declare and remit at least 50
percent of their annual earnings, as cash, stock or property dividends to the
Treasury. Based on its 2016 Revised Implementing Rules and Regulations, the DOF
may request GOCCs to remit above the 50 percent minimum dividend rate
• GOCC dividends are sources of non-tax revenues that fund infrastructure and other
social and economic programs of the government
• Increasing the dividend rate aims to promote fiscal discipline and improve revenue
generation efforts of the government
• Recto also signed a department circular providing the guidelines to implement the
special provisions of the 2024 General Appropriations Act (GAA)
• This would enable the DOF to mobilize substantial non-tax revenues from GOCCs’
unrestricted fund balances to unlock the unprogrammed appropriations of the 2024
GAA to fund priority programs and projects
• Recto is also intensifying the push for the privatization of government assets, which
will lead to better operational efficiency and higher investment returns
The Philippines' debt crisis and compares it to Greece's bailout crisis.
• The video argues that the Philippines has its own experience with debt troubles,
referring to the country's default in 1983. The factors that led to the crisis include
Marcos' debts, corruption, failed Cooney deals, and capital flight. The Philippines
didn't ask for a debt relief (like Greece did) and instead just paid up the debt.
• The video also talks about the spending cuts and tax increases Greece is going
through, mentioning that the Philippines has been through similar situations for
decades. The video emphasizes that borrowing is not bad in itself, but it becomes
problematic when it is used to cover up low taxes or fund corrupt projects.
• The video then discusses how corruption and tax evasion can lead to a situation
where bailout funds only add to the debt. The speaker mentions a financial writer's
description of a country filled with corruption and tax evasion, and says that the
Philippines needs to eliminate these problems to avoid a similar situation.
• The video concludes by saying that the Philippines is doing well now due to having
paid down debt, raised taxes, and benefited from low interest rates. However, the
pressure to cut taxes and rising interest rates in the future could put the Philippines
in a difficult situation again.
