Arroyo administration determined to pay country’s debt

Naval, Biliran (30 August) — Despite how big it will cost the government to pay its obligations, the Arroyo administration set aside a considerable amount as part of the 2006 national budget for the payment of the country’s debt.

In the proposed 2006 national budget submitted to Congress for approval, the Arroyo administration allocated some P340 billion or one-third of the P1.05 trillion proposed 2006 national budget for debt servicing.

Rep. Rolando Andaya, Jr. of Camarines Sur, chair of the House Committee on Appropriations reported that the proposed interest payment is P38.3 billion bigger than this year’s P301.7 billion.

Rep. Andaya continued that real debt service allocations would jump to P721.7 billion if the proposed budget for principal amortization of P381 billion was included in the General Appropriations Act.

Presidential Spokesperson Ignacio Bunye stated that it is the responsibility of an honest borrower to pay his debtors.

It can be noted that the country’s debt has been acquired from the chain of borrowings that can be traced back to past administrations.

Sec. Bunye explained that the country must pay its past and present debts and sternly warned that non-payment of it would cause severe economic sanctions that will ruin the Philippine economy.

The primary consideration why the Arroyo administration is determined to pay country’s debt is to break the heavy burden on the back of present and rising generations.

It was estimated that the country will have to pay P931 million in interest payments a day or P8,306 a year for every Filipino based on the P721.7 billion says Rep. Andaya in a news report.

Notwithstanding the big figure intended for debt payments, the President is determined to save the country’s children from suffering these obligations.

In order to meet the financial requirement in the proposed 2006 national budget, the government will raise revenues from those who can afford like the implementation of E-VAT which is still pending in the Supreme Court.

In spite of the bigger chunk allocated for debt servicing, President Gloria Macapagal Arroyo maintains her stand that the 2006 national budget submitted for approval in Congress is vital to the realization of the goals in uplifting the lives of the people through better infrastructure, quality education, law and order and social services that would invite investors and create more jobs. (PIA-Biliran)