On debt row

IT is not surprising to hear that the Philippines is in serious debt.
During the post-Marcos era, it became very evident how the nation’s fi nances were mismanaged by the previous regime, and Filipinos felt the brunt. We, of course, tried to be hopeful – we all prayed that future leaders of our nation would be able to come up with a brilliant plan to reduce our debt and build our economy.
At the rate that our debt continues to grow, we can only continue to hope for redemption. Just this week, former Budget Secretary Benjamin Diokno said in a news forum that taxpayers would be paying a staggering P746.2 billion in 2010. His projection includes an increase of 34.9 percent in interest payments.
Did the country benefi t from these debts? Have we seen an improvement in public infrastructures or basic services that were usually the beneficiaries of these loans made by the government? Given that there had been some improvements, but spending for future improvements on these areas is crowded out, and may entail more borrowings in order to timely meet debt obligations. The failure to reduce indebtedness, improve national revenues and raise incomes has contributed to the economic decrepitude of the Philippines. We are in fact, sitting on debt row.
In 2006, it was reported that of all the post-Marcos regimes, the current government holds the distinction of being the country’s highest single borrower. From 2001 to 2005, the Arroyo administration has incurred additional debts amounting to P2.44 trillion, more than half of the current outstanding debt, for an average of P487.9B every year. At present, the Philippines’ debt stands at P4.36 trillion, making each of the 92.2 million Filipinos in debt of P46,178.
When we think of how much we owe, it is difficult to look forward to the future, especially since this debt will linger for years and will be inherited by our children and the next generations to come.
However, we can still hope and pray that the next chief executive to be elected in May 2010 will abide by the rule of “honest, clean and selfless” governance and will be capable of getting us out of this rut, perhaps, in just a few years instead of decades. (AJPress)
( www.asianjournal.com )
( Published on September 4, 2009 in Asian Journal Los Angeles p. A12 )