SENATE BILL

JUL
21
2016

SBN-858: Government Indebtedness Cap Act of 2016

An Act Setting A Ceiling To The Indebtedness Of The Republic Of The Philippines To Ensure Macro-Economic Stability And Sustainability And Sustainable Growth And For Other Purposes

  • Government Indebtedness Cap Act of 2016”
  • Puts a cap on the indebtedness of the government at 50% 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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