Budget secretary Amenah Pangandaman said Wednesday that a whole-of-government approach is vital in meeting the government's goal of achieving an "A" investment grade rating.
In a statement, Pangandaman said a whole-of-government approach is key to sustaining the Philippine economy's high growth trajectory.
"A whole-of-government approach to strengthening our economy will certainly help us achieve an 'A' credit rating," she said.
During the Senate briefing on the proposed 2025 national budget, she made the remarks after Senator Loren Legarda asked the Development Budget Coordination Committee (DBCC) about the current administration's A-credit rating agenda.
Legarda also expressed her intent to push for measures that would strengthen the country's economic resilience and credibility in the eyes of global investors.
"Every lawmaker must understand the strategies in place to maintain and build upon this positive trajectory," she said.
"Strengthening our economic reliance and credibility is crucial, and I am committed to supporting legislative measures that will solidify our nation's standing in the global economic arena."
Pangandaman thanked Legarda for encouraging lawmakers to support the government's economic strategy for growth.
She expressed confidence that the Philippines can attain an "A" credit rating by 2028.
A higher credit rating means a lower cost of external borrowing and a greater likelihood of investments coming in.
Fitch defines an "A" credit rating as "high credit quality," which means that "the capacity for payment of financial commitments is considered strong."
In June, Fitch affirmed the Philippines' credit rating at BBB, which is above the minimum investment grade with a stable outlook.
The country also holds investment grade ratings of "Baa2" with Moody's and "BBB+" with S&P Global.
To get a credit rating upgrade, the Philippines will still need to sustain growth at 6 percent to 7 percent annually and ensure that the deficit is reduced consistently in the next four years.
The DBCC expects the deficit to decline sustainably from 5.6 percent of the gross domestic product (GDP) in 2024 to 3.7 percent in 2028.
It also projected a decline in the debt-to-GDP ratio from 60.6 percent in 2024 to 56 percent in 2028, well within the internationally accepted threshold of 70 percent, as recommended by the International Monetary Fund. (PNA)
Yorumlar