Former Albay 2nd District Rep. Joey Salceda said the Philippines may be heading toward another credit rating upgrade, citing President Ferdinand Marcos Jr.’s swift response to alleged irregularities in flood control projects.
Speaking at a media forum on February 22, Salceda said tighter scrutiny of questionable spending helped narrow the fiscal deficit while safeguarding funds for priority programs.
“We are at the cusp or on the verge of another credit update, which means lower interest rate, which means more space for spending, for government investments in areas that will essentially support our competitiveness for foreign direct investments,” he said.
Salceda recalled Marcos’ move to scale back allocations tied to allegedly anomalous flood control projects, saying the decision immediately reduced the deficit without compromising key initiatives.
“It was a blessing in disguise, I won’t call it a blessing, na ninakaw ’yung flood control. Pero dahil doon binawasan ni Marcos, andami niyang in-erase, hindi pinapalabas ang mga pera kaya tuloy meron tayong fiscal space and therefore, I think we are on the verge of getting a credit upgrade because of that,” he added.
He stressed that improved fiscal space could translate to lower borrowing costs and increased investments in education, health, agriculture, and workforce development.
The Philippines currently holds investment-grade ratings, with S&P Global Ratings maintaining a positive outlook on the country’s “BBB+” rating — signaling the possibility of an upgrade if fiscal improvements are sustained.