7-8-2023 (MANILA) The Philippine government is forced to borrow a staggering P4 billion daily to cover the shortfall caused by spending P15.8 billion out of its total generated taxes of P11.7 billion, according to Deputy Speaker Ralph Recto.
Recto, representing Batangas’ sixth district, highlighted the need to analyze the budget on a daily basis to truly comprehend the magnitude of both spending and borrowings. He based his explanation on the proposed P5.767 trillion budget submitted by the Department of Budget and Management to the House of Representatives.
While budget marketing often emphasizes the spending side, the hefty cost of financing the budget through debts is often downplayed, leaving the next generation to bear the burden. Recto expressed concerns about the interest payments on the mounting public debt, which are projected to reach P1.8 billion per day next year.
However, this figure only accounts for interest payments in the national budget and does not include principal amortization payments, which are automatically appropriated and not explicitly stated in the budget. When considering both interest and principal payments, the “real” daily debt service expenditures would amount to around P5.2 billion.
Recto also highlighted the gross borrowings of P2.46 trillion expected for the next year, financing deficits, debts, and development projects. This translates to roughly P6.7 billion borrowed daily.
In addition to debt-related expenses, Recto drew attention to the significant allocation of nearly P1.7 trillion annually for “personal services,” covering salaries, compensation of government employees, and uniformed personnel pensions. This category alone accounts for approximately P4.6 billion per day.
Ako Bicol party-list Rep. Zaldy Co, the chairperson of the House appropriations committee, expressed his commitment to support Speaker Martin Romualdez’s agenda of swiftly passing the priority bills of the Marcos administration. Co emphasized the importance of these bills for the nation’s progress and prosperity.
As the government faces the daily challenge of managing its budgetary needs and financial obligations, lawmakers will play a crucial role in ensuring that fiscal measures and expenditures are handled responsibly and effectively.
