Where did the Philippines Debt Go?

[jpdm]

Under Gloria Arroyo's administration, Philippine debt increased despite billions of pesos paid every year by the government.

The question is, where did all the money go?

Where did RP debt go?

By Judith Balea, abs-cbnNEWS.com | 08/22/2009 9:33 PM

MANILA - All borrowings under President Arroyo's term--that racked up the country's outstanding debt to a whopping P4.2 trillion as of 2008 from only P2.2 trillion in 2000--were necessary, her economic managers argue, amid accusations the President was responsible for the country's deepening financial woes.


The question now is: Where did all the debt go?


Finance Secretary Margarito Teves said bulk of the present administration's borrowings were used to settle debts, which were not its own. He added some went to interest payments while some were used to pump-prime the economy to highs in the recent past.


But President Arroyo's critics, including University of the Philippines economist and former budget chief Benjamin Diokno, beg to differ.



Diokno said while the Arroyo administration paid off debts, it also nurtured an appetite for overspending and corruption that filled up the pockets of a few.

as of 08/24/2009 4:55 PM

[jpdm]

Business Mirror

Deeper in Debt
Editorial
August 23, 2009

The adage, “Never run into debt, not if you can find everything else to run into,” still rings true. And it’s wise counsel to the government, for which the sky seems to be the limit when it comes to borrowing. And the figures are staggering.


That hasn’t escaped the attention of Sen. Chiz Escudero, who’s got a slightly higher figure of P4.8 trillion. That translates, he says, to about P1.67 billion that government must pay its creditors on a daily basis. The daily debt-service bill alone, he points out, is “more than enough to fund the budget of the Philippine General Hospital for 2009. It is enough to construct 757 school buildings with four classrooms each and will wipe out the country’s 40,000 classroom shortage in approximately two weeks.”



The Bureau of Treasury’s statistics show that the national government allocated P612.7 billion for debt servicing last year. Of this figure, at least P340.5 billion would be used to cover the principal, while P272.2 billion would cover interest payments. National Treasurer Roberto Tan has confirmed plans to raise over $2 billion in foreign commercial borrowings next year to fund a bigger budget deficit.

...Yet the government boasted that the country has around 40 billion dollar in Gross International Reserve (GIR).

[uls]

jpdm:

Under Gloria Arroyo's administration, Philippine debt increased despite billions of pesos paid every year by the government.

servicing previous debt is one thing

new borrowing is another

the govt keeps paying previous debt, but the govt keeps on borrowing more

di pa nga bayad ang dating utang, may bagong utang pa, syempre lalo lalaki ang utang

[SaberRider]

jpdm:

servicing previous debt is one thing

new borrowing is another

the govt keeps paying previous debt, but the govt keeps on borrowing more

di pa nga bayad ang dating utang, may bagong utang pa, syempre lalo lalaki ang utang

Yep, tama. It's like the govt is paying P50 on a P1,000 utang and yet just after paying the P50 hulugan they will ask for an IOU of another P100. Napaka redundant!

[uls]

jpdm:

Yet the government boasted that the country has around 40 billion dollar in Gross International Reserve (GIR).

whenever the govt borrows from abroad (by selling Phil. govt bonds),

the GIR would naturally increase coz the proceeds of the bond sales goes to the Phils.

[uls]

as to the question where the borrowed money goes...

it goes to govt spending

govt projects, operating expenses of the govt like salaries of govt employees and stuff, the president's trips abroad etc

and naturally a large percentage of that goes to personal bank accounts of govt people

--

then for debt servicing (foreign debt), the govt gets money from tax collection, create new taxes, selling govt assets

convert the pesos to dollars to pay the foreign creditors

(that's why very important ang OFW remittances... para meron dollars available dito when our country needs to pay our dollar denominated debt. If we don't have enough dollars, lalapit tuloy tayo sa IMF)

pag kulang ang na-gather na pera for debt servicing and govt expenses, the govt borrows money again

it never ends

[jpdm]

...and naturally a large percentage of that goes to personal bank accounts of govt people....

Sad, but true...

[hein]

Interest on the P4,200,000,000,000 loans.

Plus the P350B spending deficit added every year- which includes Gloria's expensive trips.

Plus the billions stolen by the crooks in government.