13 percent of proposed 2016 budget goes to debt service – Social Watch

A chunk of the proposed P3.002-trillion budget for 2016 won't be allotted to social services, but to pay for the debts incurred by the national government. 

 

As much as P812 billion or 13 percent of the proposed budget will actually go to debt payments, according to Social Watch Philippines. Of the total, P419.3 billion goes to principal payments and P392.8 billion to interest payments.

 

Social Watch is a global network of citizens’ organizations in the struggle to eradicate poverty and its causes, end all forms of discrimination and racism, and ensure an equitable distribution of wealth and the realization of human rights.

 

“It will not all go to real services for the people, because a substantial amount will to go debt payments,” said Prof. Leonor Briones of Social Watch Philippines, noting debt payments are automatic appropriations under the General Appropriations Act passed by Congress each year.

 

“Minus debt payments, the real budget is much lower, maliit lang,” said Briones, a former National Treasurer.

 

“Let’s all be watchful now that the budget is in Congress,” she said in a telephone interview. “Because later, there will be a lot of amendments and insertions, especially in the bicameral meetings.”

 

Months from now, both the House of Representatives and the Senate will meet to finalize the budget. 

 

“We must also be watchful when the government implements the budget,” she said.

 

 

The proposed budget for 2016 is 15.2 percent higher than the P2.6-trillion budget this year. 

 

The proposal by the Aquino administration include P1.1 trillion for social services, up 16.1 percent from P952.7 billion in 2015 and P829.6 billion for economic services, up 17.3 percent from P707 billion.

 

General public services get P517.9 billion, up 20 percent from P431.1 billion, and defense gets P129.1 billion, up 11.5 percent from P115.8 billion.

 

The budget deliberations will start on August 10. – VS, GMA News