Smaller debt-to-GDP ratios set in revised fiscal program

Smaller debt-to-GDP ratios set in revised fiscal program

by UA&P News Desk on March 29, 2011 - 3:39 pm

From Business World

SMALLER debt-to-gross domestic product (GDP) ratios have been targeted in the government’s revised Medium-Term Fiscal Program, data from Finance department showed.

Adjustments have been made for 2011 up to the final year of the Aquino administration. For this year the target debt-to-GDP ratio was lowered to 55% from 56% previously. The adjusted goals for the succeeding years up to 2015 are 54%, 50.9%, 48.2% and 46.3% from 55%, 53%, 51% and 49% respectively.

By 2016, the ratio should hit 43% , down from the earlier target of 47%.

“We are moving closer and closer to the averages of our neighbors,” Finance Undersecretary Gil S. Beltran told BusinessWorld.

Fiscal consolidation efforts, said Mr. Beltran, allowed the government to set the new targets. He said debt swaps, for example, had allowed the government to secure lower interest rates for its borrowings.

University of Asia and the Pacific economist Cid L. Terosa welcomed the revisions, calling the 43% for 2016 a “good number”.

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