Conclusions

 Brief Comparison on debt

 How much loans and who are major lenders
 Saang project napunta
 Fiscal response enough compared to debt
 How it affects the economy

The National Government’s outstanding debt stood at P7.731 trillion as of end-2019. A 0.4%
improvement on the debt-to-GDP ratio was marked as a result of prudent cash and debt management
backed by steady economic growth. Meanwhile, the total national debt dramatically increases along
with confirmed COVID-19 cases in the Philippines during the early February of 2020. On the report of
Bureau of Treasury, the debt stock grew by P2.063 trillion or 26.7% as compared to 2019 level. It is
amounted to 9.795 trillion, which then raised the debt-to GDP ratio to 54.5% for 2020 from 39.6% at the
end of 2019. Data showed that Philippines loaned a total of 2.74 trillion in 2020. It is the highest annual
borrowings tabulated and so close to the entire amount of liabilities on the last three years (2017-2019).
External financing amounted to P742.4 billion, whilst domestic loans and government securities soared
1.99 trillion. Program loans and projects loans from multilateral lenders and bilateral development
reached 375.2 and 49.1billion pesos respectively. The Philippines also raised a cumulative total of 318
billion from United States and Euro bonds issuances. Despite the sharp rise of credit, government
response to Covid-19 seems lacking in terms of vaccines quantities and economic aids.

Over one year into a pandemic, the Philippine government response remained unsuccessful in flattening
the curve and return semblance of normalcy. In defiance of whopping 2020 national debt amounting to
10.7 trillion pesos, a 26.7 % increment from 2019 scale, Filipino’s still struggled to access adequate
healthcare services. The 2.4 trillion loan from various institutions to procure Covid-19 disease, equip
emergency supplies, subsidy to poor households, assist distance education, and boost Philippines’
pandemic response appeared to be inadequate, considering the administrations futile fiscal
management and misguided allocation of funds. Undeniably, the Philippine government spent the huge
borrowing lavishly. Statistics showed the unjustifiable granting of large fund for the Department of
National Defense knowing that the pandemic is a health crisis and has nothing to do with security
threats. The Duterte administration got its priorities wrong when the Department of Science and
Technology received too little allocation of loans. It could have been a different scenario given that the
DOST conduct researches about vaccines and the Covid virus in general. Furthermore, a little over 4
percent of the total 2021 budget went to purchasing and distributing vaccines, yet the vast majority
going to infrastructure building campaign, foreign investment attractions, tourism, and other boosters of the
otherwise slowing, and now shrinking, economy. The pressing issues emerged during the pandemic has yet
to addressed. It seemed clear as communities on the silver linings continue to suffer, encountering
further challenges due to revenue losses upon pandemic restrictions. Indeed, the economy of the
country is on the line, and so, the administration’s response to the pandemic is crucial.
Recommendations

“Medical Solutions, not military ones”, Filipinos amplified the calls for optimum solutions to alleviate the
serious damage brought by the pandemic to health care system, education, and economy. Covid-19
disease is unplanned, whilst the present administration’s focus remains unchanged. Based on the
findings of the study, various recommendations were attained.

 Government should priorities the urgent needs to enhance health services, extend assistance for
marginalized communities, stimulate socioeconomic relief instead of focusing on non-Covid
related programs such as anti-insurgency, which is linked to red-tagging. Also, cessation on
squandering of resources to Manila Bay’s Dolomite sand is highly recommended since research
revealed that it could damage marine diversity and human health.
 Reallocation of budget for year 2021 must also take into account. Lawmakers should rectify the
skewed priorities of the current administration to incur favorable outcome in battling the
adverse impact of Covid-19 disease. Reprioritizing state expenditure to reinforce the economy
requires competence of government leaders, therefore, public officials should be sensible in
adjusting budgetary allocation to quickly resolve fiscal constraints.
 Apart from redistribution of public funds, the Philippine government should amend policies
emerged during the pandemic, which are found ineffectual in facing the current situation.
Reforms and innovations is imperative in overcoming the pandemic crisis. In the framework of
flattening the curve, an improved coordinated science approach to suppress Covid-19 infection
is needed.
 Once things have gotten better and when authorities are able to control spread of virus, it is the
best time to allow enterprises to operate. Industries such as Transportation, tourism, film, and
the like are severely affected by the prolonged lockdowns. The reopening of these commercial
venture and government stimulus efforts will bolster the nation’s economy. At this point, the
upturn in the Gross Domestic Product will most likely to happen, which will eventually open the
door to dwindle the Philippine Outstanding debt.