Finex calls for more accountability as growth slows, debt rises

MANILA, Philippines — The Financial Executives Institute of the Philippines (FINEX) urged greater public spending accountability as slower growth and rising debt squeeze fiscal space.

“With economic growth slowing and public debt continuing to rise, the Philippines can ill afford inefficient or ineffective public spending,” the group said in a statement on Wednesday.

READ: Postpandemic low: Q2 GDP grew by just 2.3%

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“FINEX therefore calls on the appropriate authorities to thoroughly investigate the alleged misuse of public funds in accordance with due process, pursue the recovery of public funds or assets wherever legally warranted, and hold accountable those found responsible,” it added.

The statement comes as the Philippine economy slowed further to 2.3 percent in the second quarter, bringing first-half growth to 2.6 percent, amid sluggish infrastructure spending as the flood-control controversy lingers and the economy faces the impact of the Middle East war.

At the same time, the government’s outstanding debt reached a new peak of P19.07 trillion as of end-June, pushing the debt-to-GDP ratio to around 66 percent in the second quarter.

The government targets economic growth of 3.5 to 4.5 percent this year and expects outstanding debt to reach P19.8 trillion by year-end. /pai