Inside govt’s spending cuts :: Mmegi Online

The government is applying the brakes on its recurrent spending in an attempt to restore fiscal stability as public debt nears P100 billion, with a range of belt-tightening measures which include restraining various allowances and revising social programmes to focus on deserving beneficiaries.

The moves come as fiscal authorities fight to trim the budget deficit, in order to slow down the pace of government borrowing and avoid a debt free-fall which would push the economy into a crisis.

At the last count, public debt was measured at P92.7 billion, a number expected to rise beyond P100 billion by the end of the financial year, or about 44% of Gross Domestic Product (GDP). While the government can borrow up to 60% of GDP after securing Parliament approval last year, Finance Ministry authorities and experts at the World Bank have warned that the slow pace of economic growth and uncertainty in diamonds could trigger a debt crisis.

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ECONOMY

Inside govt’s spending cuts

The government is applying the brakes on its recurrent spending in an attempt to restore fiscal stability as public debt nears P100 billion, with a range of belt-tightening measures which include restraining various allowances and revising social programmes to focus on deserving beneficiaries.

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