News

JUL
08
2013

SBN-627: Government Indebtedness Cap Act of 2013

An Act Setting A Ceiling To The Indebtedness Of The Republic Of The Philippines To Ensure Macro-Economic Stability And Sustainable Growth And For Other Purpose (“Government Indebtedness Cap Act Of 2013”)

  • Puts a cap on the indebtedness of the government at 60% of the Gross Domestic Product (GDP) to secure the prevention of potential negative impacts of high public debt on economic activity
  • Provides that the Debt Cap may be breached only when there are extraneous events beyond the control of the government subject to Presidential certification, and approval of Congress
  • Puts a cap on the borrowings of the national government by mandating the Chief Executive to go back to Congress and seek authority to borrow more in the event that the national government fiscal deficit target submitted by the President is breached before the end of the fiscal year

 

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