Government forced to borrow P4 billion daily – lawmaker

MANILA, Philippines — The government spends P15.8 billion from the P11.7 billion total taxes it generates, which forces it to borrow P4 billion if only to plug the debt hole – all on a “daily basis,” a lawmaker said yesterday.

“To fully grasp the dimensions of the budget, you have to compute it on a daily basis, to fully appreciate the enormity of both spending and borrowings,” Deputy Speaker Ralph Recto said.

Recto, who represents Batangas’ sixth district, based his explanation on the proposed P5.767 trillion that the Department of Budget and Management submitted to the House of Representatives, where emanate all tax measures and budget proposals.

The former senator nevertheless pointed out that should expenditures be based on “actual disbursements,” then P3.7-billion daily spending would suffice.

In a statement, Recto said that while the “art of budget marketing perfected by all governments” focuses on what will be spent by every administration, what is always missing – or to put it simply, “what is downplayed – is the enormous money required to finance it.”

“Programs that dazzle are highlighted while muting the cost, a great portion of which are paid by debts left to the next generation to pay,” he added.

Payment for interest alone on the burgeoning public debt will be around P1.8 billion a day next year.

“But it doesn’t give the whole picture because this is just for the payment of interest in the national budget. Our payment for the (loan) principal, the amortization that are automatically appropriated, is not included in the national budget,” Recto said.

If the principal amortization requirement of P3.4 billion a day is added to the interest payment of P1.83 billion, however, “real” debt service expenditures would be around P5.2 billion daily, he added.

“That is just for our debt payment. What we will avail by way of loans is separate from that,” the lawmaker said, referring to the scheduled interest payments of P670 billion and P1.24 trillion in principal amortization next year.

Gross borrowings next year – to finance the deficit, debt and development – have been forecast to reach P2.46 trillion, or “about P6.7 billion daily,” according to Recto.

The former Senate president pro tempore said that at almost P1.7 trillion annually, “personal services,” which is the expense class term for the salary and other compensation of national government employees and pension of uniformed personnel “would come up to P4.6 billion a day.”

Ako Bicol party-list Rep. Zaldy Co, who chairs the House appropriations committee, promised to support the goals of Speaker Martin Romualdez for a swift passage of the Marcos administration’s priority bills.

“As panel chairman, it is my utmost duty to work in collaboration with Speaker Romualdez and our esteemed colleagues to ensure that the priority bills gain the momentum they deserve. These bills hold the key to our nation’s progress and prosperity,” Co said.