MANILA, PHILIPPINES — Former Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo warned that the Philippine economy was in a “precarious” position as national debt reached ₱19.6 trillion, urging the government to confront corruption, strengthen fiscal discipline, and ensure that public spending delivers tangible benefits to Filipinos.
Speaking at the Kapihan sa Manila Prince Hotel forum, themed “More Debt, Less Infrastructure, Slower Growth: Where Is the Economic Return?”, Guinigundo raised concerns over slowing economic growth, the ₱1.5-trillion annual fiscal deficit, rising inflation, and the growing risks of excessive borrowing.
He cautioned that continued fiscal pressures could push the country closer to stagflation, emphasizing that higher public debt must translate into productive investments, better infrastructure, and improved living conditions.
Guinigundo also called for a thorough review of the proposed ₱7.2-trillion national budget for 2027, particularly unprogrammed appropriations, while advocating stronger procurement safeguards, monitoring, and auditing to prevent waste and corruption.
He stressed that the Philippines’ elevation to upper-middle-income status should not obscure the continuing struggles of millions of Filipinos facing poverty and economic uncertainty. For him, genuine progress must be measured not merely by economic figures, but by inclusive and sustainable growth.
The former BSP official further discussed risks involving the peso, the balance of payments, inflation, and potential climate disruptions from El Niño and La Niña. He also touched on the Pax Silica framework and its potential implications for the country.
“Restoring investor confidence begins with holding those responsible for corruption accountable,” was the central message of his call for stronger governance and public accountability.
Hosted by former Senator Atty. Joey Lina and former Presidential Communications Secretary Sonny Coloma, the forum underscored the urgent need for transparency, responsible borrowing, and a clear economic strategy that prioritizes the public interest.
Guinigundo emphasized that public funds belong to the people and called on voters to elect leaders with integrity, competence, and proven experience.
As the country faces mounting fiscal challenges, the message is clear: Borrowing without accountability, spending without results, and growth without inclusion cannot secure the Philippines’ economic future. #KapihanSaManilaPrinceHotel #PhilippineEconomy #PublicDebt #GoodGovernance #FiscalResponsibility #thephilippineseventnewstv #thephilippinepostnewstoday #lifestylenews
