Metro Manila (CNN Philippines, August 10) — With the Marcos administration intending to fund around half of its infrastructure flagship projects with official development assistance (ODA), Gabriela Women’s Party-list Rep. Arlene Brosas raised concerns that this “reliance on loans” may result in an additional ₱3 trillion in debt by 2024.
During budget deliberations at the House of Representatives on Thursday, Brosas questioned the sources of funding for the 194 infrastructure flagship projects approved by the National Economic and Development Authority (NEDA) Board worth about ₱9 trillion.
NEDA Sec. Arsenio Balisacan answered that the projects would be funded through private-public partnerships (PPPs), government appropriations, and the ODA or loans contracted by the Philippines with other foreign governments, and are administered to sustain the social and economic welfare of the country.
Balisacan specified that the ODA will cover 82 projects, while 47 will be funded by PPPs.
READ: Marcos govt’s PPP strategy for infrastructure ‘a step forward’ – think tank
Kung 42% ay popondohan ng utang [If 47% will be funded by loans], is this why the Marcos administration is planning to incur an additional ₱3 billion debt in 2024?” Brosas asked.This reliance on loans will result in an additional ₱3 trillion debt in 2024, bringing the total outstanding debt to ₱15.8 trillion by the end of the year,” she added.Balisacan argued that the infrastructure projects would boost economic growth, creating more jobs and improving the lives of Filipinos, and therefore lower the country’s debt.The intention here in getting these projects is to expand the size of our economic pie even as we incur debt. That debt is going to fall in relation to the size of economy,” the NEDA chief maintained.With a projected debt per capita of around ₱138,764 for each Filipino by 2024, it is evident that the proposed budget will burden the Filipino people with more debt,” Brosas said.The lawmaker also pointed out the substantial difference in the proposed budgets for infrastructure and social protection programs – ₱1.4 trillion and ₱204.6 billion, respectively.
