Gov’t to borrow P1B a day to finance 2007 operations - Malaya 09.23.2006
GOVERNMENT’S borrowing binge will go full blast next year as it plans to borrow up P1.07 billion a day to sustain its operations, administration Sen. Ralph Recto said yesterday.
"(This is) proof that despite good revenue stream, government is not yet totally cured of debt dependency," Recto said. "At this pace, we are not out of the debt trap yet."
The borrowings would amount to P390.8 billion based on the budget documents submitted by Malacanang to Congress. The proposed national budget for 2007 is P1.136 trillion.
Of this amount, P130.7 billion would be borrowed abroad while P260.1 billion would be sourced domestically, Recto said.
He said the fresh debts would be used to retire old debts, pay off principal amortization and plug the projected budget deficit next year.
He said government is actually borrowing an amount bigger than the projected deficit, "in anticipation perhaps of some contingencies so it is building a cash hedge."
"Clearly, the more than P1 trillion in taxes that we will collect next year will not be enough to sustain our needs so we still have to run to our usual sources of creditors," he said.
Malacañang said the income gap between the rich and the poor would soon be bridged because of the government’s fiscal reform program.
The Palace was reacting to the statement of Masahiko Takeda, senior advisor of the International Monetary Fund, that the Philippines has the widest income gap and the fastest-rising divide between the rich and the poor in the past decade.
Takeda said the inequality rose more from the "rich getting richer than the poor getting poorer" and that the economic cycle generally favored the income growth and wealth accumulation of the richer portion of the population.
Press Secretary Ignacio Bunye said President Arroyo’s fiscal reform program is driving the country’s favorable finances and market indicators as well as the bullish outlook of various financial institutions.
Bunye said Malacañang is confident that the economy would sustain its resiliency and "strengthen through the remaining months of the year despite the vagaries in the world economy."
"Soon enough we will see the payback to the poor through improved infrastructures, enhanced social services and better education for all – as we close the income gap," he said.
Takeda said the increasing inequality is a concern among policy makers and the public. He said government should increase social and infrastructure spending in the rural areas to cut the gap with urban areas. – Dennis Gadil and Regina Bengco
"(This is) proof that despite good revenue stream, government is not yet totally cured of debt dependency," Recto said. "At this pace, we are not out of the debt trap yet."
The borrowings would amount to P390.8 billion based on the budget documents submitted by Malacanang to Congress. The proposed national budget for 2007 is P1.136 trillion.
Of this amount, P130.7 billion would be borrowed abroad while P260.1 billion would be sourced domestically, Recto said.
He said the fresh debts would be used to retire old debts, pay off principal amortization and plug the projected budget deficit next year.
He said government is actually borrowing an amount bigger than the projected deficit, "in anticipation perhaps of some contingencies so it is building a cash hedge."
"Clearly, the more than P1 trillion in taxes that we will collect next year will not be enough to sustain our needs so we still have to run to our usual sources of creditors," he said.
Malacañang said the income gap between the rich and the poor would soon be bridged because of the government’s fiscal reform program.
The Palace was reacting to the statement of Masahiko Takeda, senior advisor of the International Monetary Fund, that the Philippines has the widest income gap and the fastest-rising divide between the rich and the poor in the past decade.
Takeda said the inequality rose more from the "rich getting richer than the poor getting poorer" and that the economic cycle generally favored the income growth and wealth accumulation of the richer portion of the population.
Press Secretary Ignacio Bunye said President Arroyo’s fiscal reform program is driving the country’s favorable finances and market indicators as well as the bullish outlook of various financial institutions.
Bunye said Malacañang is confident that the economy would sustain its resiliency and "strengthen through the remaining months of the year despite the vagaries in the world economy."
"Soon enough we will see the payback to the poor through improved infrastructures, enhanced social services and better education for all – as we close the income gap," he said.
Takeda said the increasing inequality is a concern among policy makers and the public. He said government should increase social and infrastructure spending in the rural areas to cut the gap with urban areas. – Dennis Gadil and Regina Bengco
posted by brodkaster43 at Sabado, Setyembre 23, 2006
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