GOV'T PAYS P1.67-B DAILY IN DEBT PAYMENTS - CHIZ

Opposition Sen. Chiz Escudero said yesterday the government is paying its creditors about P1.67 billion daily to pay off its current debt of P4.8 trillion pesos, and it will increase further as it borrows even more to make up for shrinking revenues.

"Our daily debt service bill alone of P1.67-B 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," he pointed out.

Last year, Bureau of Treasury statistics show that P612.7 billion of the total national government budget was allocated for debt servicing -- a staggering P1.67 billion a day. At least P340.5 billion was used to cover the principal, while P272.2 billion was allotted to cover interest payments.

According to reports, National Treasurer Roberto Tan has confirmed plans to raise over US$2 billion in foreign commercial borrowings next year, higher than earlier planned, to finance a bigger-than-expected budget deficit.

Escudero also debunked the Palace claim that the administration did not rack up debts totaling P2.4 trillion from 2001 to 2005, far bigger than the previous three administrations.

"The Palace should look harder. On the BSP website (http:/www.bsp.gov.ph/spei_2006/tab27.htm), they will find that total gross domestic and foreign borrowings from 2001 to 2005 totalled 2.439 trillion," Escudero said.

The Arroyo government doubled the country's national debt from P2.8 trillion in 2001 to P4.8 trillion last year, according to BSP data.

"What is ironic while our debts have soared, more of our people are going hungry and leaving by the thousands every day regardless of our credit ratings," Escudero pointed out.

He said when the hearings begin for the proposed P1.541-Trillion budget for 2010; Congress should go through it line by line to check on non-essential items.

"We must make sure that every centavo will be earmarked for our people's welfare and not burden them even more with more debts. As it is, we already have mortgaged the future of the next generation," Escudero said.