House scrutinizes P888-B of planned gov't borrowings for 2018

The House of Representatives on Monday scrutinized the planned P888-billion borrowings of the Philippine government for 2018.

During plenary debates on the proposed budget of the National Economic Development Authority (NEDA) on Monday, Baguio City Rep. Mark Go asked Albay Rep. Joey Salceda on government debt and the fiscal deficit.

"To date in 2016, it was stipulated by the same group that our total loan, both domestic and foreign, is P6.6 trillion. And in 2017, we also have a deficit budget of P531 billion," Go said.

"And this 2018, the amount stipulated here is that we have a borrowing again of P888 billion. Is that correct?" he added.

Salceda, who sponsors the NEDA budget, confirmed the numbers cited by Go. "Tama po," he said. "The outstanding debt is P6.4 trillion. That includes the 2017 borrowings that we have."

Out of the P888 billion the government will borrow for 2018, P66.9 billion is allocated to pay for the country's maturing obligations, Go noted.

"In other words, what we're going to do here is we have to borrow to pay for our maturing obligations?" he asked Salceda.

"Tama po kayo," Salceda replied, noting that lawmakers and the public at larger need not worry about the country's debt.

Salceda said the Philippines is one of the countries in the world with the least debt burden equivalent to 44.2 percent of gross domestic product (GDP).

"Ang Japan, 300 percent, ang Italy 100 percent, ang US, ang Germany, halos lahat po 'yan nasa more than hundred percent ng total GDP. Sa atin, 44 percent. Kung titignan niyo nung 2004, 114 percent ng GDP ang ating utang, ngayon naging 44 na lang," he said.

"Pangalawa, may guidepost po na ang ibig sabihin huwag ka lang lalagpas ng deficit ng three percent ng GDP taun-taon.'Yan po ay nirerecognize ng market para lumago," Salceda noted.

The representative from Albay said the money the country will borrow next year will be spent on capital outlay to improve the economy.

"Ang rate of return, social and financial return ng isang highway, halimbawa ... Ang return po nyan ay mas mataas sa interest. As long as mas mataas ang return kaysa interes ay valid na pagkakamit sa kakayahan ng gobyerno upang mapalago ang ekonomiya," he said.

The Philippines pays P200 billion a year for its debts, which could have been used for other expenses, Go noted.

"Is there a plan to narrow down these borrowings? May road map ba to reduce this?" he asked Salceda.

"Meron," Salceda replied. "Kung wala na tayong oportunidad. Kung wala nang ipapanganak na mga susunod na Pilipino. Kasi 'yung ini-invest mo ngayon, ang makikinabang niyan ay 'yung future."

"Essentially, we're borrowing so that the future generation will have their own capacity," he added.

Minority Leader Danilo Suarez asked House Appropriations Committee chair Karlo Nograles about the government debt during the interpellations on the budget of the Department of Budget and Management (DBM).

"Kailan natin mababayan ang utang? Within our lifetime?" Suarez asked.

Nograles pointed out that the national debt has been on the decline in recent years. "What is important is we manage our debt in a way na bumababa 'yung national debt natin as percentage of GDP," he said.

"Wag nating tignan 'yung utang natin. Ang importante ay nagagamit natin ito sa pagpapalago ng ating ekonomiya," Nograles added.

The House of Representatives began its week-long plenary deliberations on the proposed P3.767-trillion budget for 2018.

In a statement on Sunday, Nograles said they will try to have the budget bill passed on third and final reading this Friday.

Lawmakers expect President Rodrigo Duterte to sign the proposed budget into law on November 15, assuming that it had been approved by the bicameral committee before that date. — VDS, GMA News