DEBT PAYMENTS AT ALL-TIME HIGH:

SOCIAL SERVICES SPENDING STILL A CASUALTY OF GOVT’S INCREASING DEBT SERVICE

The Arroyo administration’s goal of achieving a balanced budget as soon as possible to reassure its creditors will, aside from new taxes, also result in further cuts in government spending for vital social services.

 

 

 

Social spending per Filipino under the Arroyo administration has in fact consistently fallen while debt servicing has consistently increased to record highs. In 2007, government allocated only P1,827 per Filipino, or P5 a day, for education, culture and manpower development. This is a 7% decrease from 2001 taking inflation and population growth into account. For health, each Filipino received only P163 in 2007, or just P0.45 a day, is a 25% decrease from 2001.

 

 

 

In contrast, total debt servicing per capita is at P7,133 in 2007 which is almost four times combined education and health spending.

 

 

 

Total debt payments of P854 billion in 2006 ate up over 87% of revenues and was equivalent to more than 14% of the gross domestic product– which gives the Arroyo government the distinction of making the highest public debt payments in Philippine history. This belies government claims that the reformed value-added tax (RVAT) would boost social service spending.

 

 

The country’s fiscal position is one of the highlights of the study presented at the IBON Midyear Birdtalk, a semi-annual forum on the national economic and political situation and trends.

The Arroyo administration’s goal of achieving a balanced budget as soon as possible to reassure its creditors will, aside from new taxes, also result in further cuts in government spending for vital social services.

 

 

 

Social spending per Filipino under the Arroyo administration has in fact consistently fallen while debt servicing has consistently increased to record highs. In 2007, government allocated only P1,827 per Filipino, or P5 a day, for education, culture and manpower development. This is a 7% decrease from 2001 taking inflation and population growth into account. For health, each Filipino received only P163 in 2007, or just P0.45 a day, is a 25% decrease from 2001.

 

 

 

In contrast, total debt servicing per capita is at P7,133 in 2007 which is almost four times combined education and health spending.

 

 

 

Total debt payments of P854 billion in 2006 ate up over 87% of revenues and was equivalent to more than 14% of the gross domestic product– which gives the Arroyo government the distinction of making the highest public debt payments in Philippine history. This belies government claims that the reformed value-added tax (RVAT) would boost social service spending.

 

 

The country’s fiscal position is one of the highlights of the study presented at the IBON Midyear Birdtalk, a semi-annual forum on the national economic and political situation and trends.www.ibon.org

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