DOF chief refuses to reveal Philippines' cash projection for 2021 to not ‘harm’ negotiating position

Finance Secretary Carlos Dominguez III refused to publicly disclose the government’s projected cash position or the amount of cash it has on hand next year.

During the budget deliberations at the House of Representatives, Marikina Representative Stella Luz Quimbo asked the Finance chief what the government’s projected cash position would be by the end of 2021.

This, as Quimbo cited government projections that the budget deficit for 2021 will reach P1.75 trillion and the net financing will be at P2.26 trillion “so that budgetary change in cash is P513 billion.”

In response, Dominguez said, “We do not disclose our cash position.”

“The reason is we are in the debt market and we do not wish to harm our negotiating position,” he said.

The Finance chief earlier said the Philippines will sustain its P3-trillion borrowing program in 2021 to fund the costly COVID-19 response and recovery efforts.

For next year, gross borrowings are seen to reach P3.025 trillion, equivalent to 58.1% of GDP, with a financing mix of 85:15 in favor of local sources.

“It would appear that the economic managers are planning an unusually large cash balance by the end of 2021,” Quimbo said.

For his part, Dominguez said he will disclose the government’s projected cash balance next year to House Speaker Alan Peter Cayetano “in a purely confidential basis.” -MDM, GMA News