Tuesday, March 26, 2019

PH's debt/GDP ratio stopped declining under Duterte

Until the last full year of Gloria Arroyo in 2009, PH's debt/GDP ratio was 54.8%. Then came the Benigno Aquino admin, the ratio kept falling with numerator (borrowings) controlled while the denominator (GDP) kept expanding, only 42.1% by 2016. Then Duterte admin, the decline in ratio has stopped. If the trend under the Aquino admin continued, we should only have about 39%, not 42% under Duterte.

Dutertenomics lousily takes credit for the low debt/GDP ratio when it was the previous administration that worked hard to reduce the ratio. The purpose of Dutertenomics is to reverse the gains and momentum of the previous govt, via shameless over-borrowings even if there is no economic turmoil/crisis.

#fiscalirresponsibility #spendspendspend #taxtaxtax #borrowborrowborrow #Dutertenomics.

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