TULIAO, MHAHALIA KAREN BLESS ARCIAGA FIN-MAN

ABM-3A

LEARNING ACTIVITY NO.4

Instructions:
· Read an article, material or something about the current public debt of the country.
· Answer the questions below.
· Answers must not exceed or go beyond 150 words.

QUESTIONS:
1. How much is the debt burden of the country? Explain briefly why the country incurred such debt.

2. How much is the foreign debt and in what percentage? Explain briefly the reason for incurring such
foreign debt.

3. As a Finance Secretary of the country, how do you plan to finance the operations of the different
agencies of the government?

4. Do you think debt is good? Explain briefly

ANSWERS:

1. The general government debt of the Philippines amounts to ₱12.03 trillion ($232,255,149,900).
Because the Philippines began the 1970s with debt rescheduling and an IMF-sponsored stabilization
program, the merchandise of fiscal ex- pansion and short-term borrowing during Marcos's first
administration. the first 1970s was a period of economic recovery, aided by rising world commodity
prices.

2. As of March 2022, the general government debt of the Philippines amounts to ₱12.03 trillion
($232,255,149,900). The debt-to-GDP ratio, which reflects the ability to pay obligations, will jump from
39.6 percent in 2019 to 53.9 percent in 2020 and 58.1 percent in 2021. Foreign debt is money borrowed
by a government, corporation or private household from another country's government or private lenders.
Foreign debt also includes obligations to international organizations like the globe Bank, Asian
Development Bank (ADB), and therefore the International money (IMF). Total foreign debt will be a
mixture of short-term and long-term liabilities.

3. I don’t think having debt is a good idea knowing that some of us will borrow money without a job or at
least an extra income for it to be paid. Maybe having debt and using it to good purposes such as building
up and risking it for a business that might click in the next years will be a good choice. Well in my own
perspective it is good in some instance but generally it’s not good to have debt if you can’t pay for it
sooner or later.