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MANILA, Philippines – Rising borrowing costs amid slowing economic growth are squeezing the government’s fiscal space, threatening to make financing the proposed 2027 national budget more expensive, according to a state-run think tank.

In its latest discussion paper, the Congressional Policy and Budget Research Department (CPBRD) warned that slower-than-expected economic growth could dampen government revenues while pushing up the cost of borrowing, increasing the fiscal risks of sustaining current spending levels.

READ: PH’s upper-middle income status won’t raise loan costs yet, Palace says

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