MANILA - There is nothing wrong with incurring debt as long as it is managed properly, Budget Secretary Amenah Pangandaman said on Monday.

Pangandaman was responding to a statement issued by House Deputy Speaker Ralph Recto on the estimated P4 billion daily borrowing required by the government in 2024 to fill the gap in its P5.767 trillion National Expenditure Program (NEP).

Recto said the NEP translates to P15.8 billion in daily spending. However, the revenue targets from the Bureau of Internal Revenue and the Bureau of Customs could only support P11.7 billion in daily spending, Recto added. This means around P4 billion must be fulfilled through borrowing.

Pangandaman however defended the government's borrowing.

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"Ang utang as long as nagagamit siya sa tama, OK lang naman po siya. At saka meron naman tayo mga levels na fina-follow," Pangandaman said.

(Debt, as long as it is used correctly, is OK. We also have levels that we follow.)

"I checked with Treasurer this morning, it’s still consistent with our plan," she added.

The budget chief also explained that the new tax measures may not yield big revenues next year just yet coupled with the looming global economic slowdown hence the need to apply for loans.

According to the data of the Bureau of Treasury, the country's outstanding national debt reached a record P14.15 trillion as of the end of June.

The country's debt level more than doubled during the administration of former President Rodrigo Duterte as the government embarked on an ambitious infrastructure push, and dealt with the COVID-19 pandemic.

Economic managers have said that the country's debt level remains manageable, especially since the country is posting robust economic growth.

The Philippines is also aiming to get a credit ratings upgrade, which will allow the country to borrow money at lower interest rates.

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