The target ratio for the country’s debt as a share of the gross domestic product (GDP) for the medium term is attainable, Department of Finance Secretary Benjamin E. Diokno said.

In a panel discussion with the Philippines’ economic managers, Diokno said that the government’s target ratio will be achieved by adopting a borrowing mix of 70 percent foreign and 30 percent domestic to minimize foreign exchange risk.

“As we reduce our deficit, then correspondingly, our debt will also reduce. As I mentioned earlier, the key really is to grow our economy,” Diokno said.

The Philippines’ debt-to-GDP ratio inched down to 60.2 percent in the third quarter, down from 61.0 percent in the previous quarter.

The government, through the Medium-Term Fiscal Framework (MTFF), aims to reduce the debt-to-GDP ratio to less than 60 percent by 2025, then further down to 51 percent by 2028.

The MTFF also seeks to reduce the country’s deficit-to-GDP ratio to 3 percent by 2028 and sustain high infrastructure spending at 5 to 6 percent of GDP annually.

Diokno also noted that the country has issued several bonds in the last 24 months, one of which was the $2.25 billion triple-tranche ESG Global Bond Offering.

In the same event, the finance secretary also noted the country as an attractive investment destination to the United States business community and one of the fastest-growing countries in the ASEAN region.

“We have opened up the economy. We didn’t wait for the virus to subside, we opened up many sectors of the economy and the economy really is doing very well. It is one of the fastest-growing countries in the fastest-growing region in the world. So this is our moment,” Diokno said

For his part, Mike Samson, incoming chief executive officer of Standard Chartered Bank Philippines, highlighted the country’s unwavering commitment to achieving economic growth, social progress, and sustainable development.

“Last October, the World Bank projected the Philippines to post the highest growth among Southeast Asian countries. Strong domestic demand, growth in fixed capital investment, and supportive regulatory reforms underpin the Philippines unique economic resilience amidst the global economic slowdown,” he said.

In boosting the economy, the DOF said it will continue to work together with Congress to pass tax revenue measures such as the value-added tax on digital service providers, tax on pre-mixed alcohol, and excise tax on single-use plastics.

It also said that it supports measures such as the rationalization of the mining fiscal regime, excise taxes on sweetened beverages and junk food, the motor vehicles road users tax, and improved tax administration through digitalization.