'Gov't should advance fiscal consolidation'

The government should advance its fiscal consolidation through reduced borrowings and moderate spending to ensure sustainability of the country's debt level, a state think tank said.

- By LOUISE MAUREEN SIMEON

In its latest discussion paper, the Congressional Policy and Budget Research Department (CPBRD) said the challenges associated with maintaining debt and fiscal sustainability are compounding over time amid volatile macro-fiscal conditions.

As of end-March, the national debt stood at a record P16.68 trillion. Its share to the country's output jumped to a two-year high of 62 percent, with the ratio moving further above the internationally accepted threshold.

As such, CPBRD argued that a sustained fiscal consolidation over the medium-term that is guided by carefully calibrated fiscal targets is essential to mitigating debt risks and ensuring long-term economic stability.

"Policymakers are enjoined to intensify efforts to strengthen fiscal sustainability and advance fiscal consolidation by reducing borrowing and, more importantly, moderating deficit spending," CPBRD said.