A large part of the country’s external debt remains in medium-to-long term maturity profile supporting a manageable debt repayment schedule over the medium-to-long term horizon. In addition, majority of the foreign borrowings are also fixed interest rate bearing, which makes it unaffected by any future foreign exchange fluctuations. Seventh, the national government has ample fiscal policy space to support accelerated public investments.
The improving fiscal position of the government, supported by the series of fiscal reforms and improved tax administration, provides the government the resources to increase public investments. More importantly, the push for infrastructure development is exactly what the economy needs to expand its productive capacity. The Philippine government’s infrastructure agenda is focused on both hard and soft infrastructure.