This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. VII, No. 9, April 1-7, 2007
From 2001
to 2006
The administration of
President Gloria Macapagal-Arroyo is the most indebted in Philippine history, as
well as among the most heavily indebted in East Asia.
BY IBON FOUNDATION In her response to a survey
that found the Philippines to be the most corrupt economy in Asia, President
Gloria Macapagal-Arroyo claimed that the country’s negative image was an
offshoot of tough decisions she made to turn the country around, such as the
implementation of the reformed value-added tax (RVAT) which was one of the
administration’s tax reform measures. An examination of her
six-year record in office, however, showed that her administration actually
brought the country to its worst-ever fiscal crisis, according to independent
think-tank IBON Foundation. IBON Research Head Sonny
Africa said that total national government debt stood at P3.91 trillion ($81.07
billion, based on an exchange rate of P48.28 per US dollar) in October 2006. On
the other hand, total public sector debt (including debt of government
corporations and other government entities) reached P6 trillion ($124.27
billion) which is equivalent to some 110% of the gross domestic product (GDP). Africa added that these
figures do not yet include contingent liabilities (or government-guaranteed
debt) of P552.7 billion ($11.45 billion) as of September 2006. The Macapagal-Arroyo
administration is the most indebted in Philippine history, as well as among the
most heavily indebted in East Asia. Hence, total debt service
allocations in the national budget have increased 186 percent from P274 billion
($5.68 billion) in 2001 to P784 billion ($16.24 billion) in just the first 11
months of 2006, Africa said. In real terms (taking inflation and population
growth into account), he added, every Filipino now owes the country’s creditors
some P9,015 ($186.72). According to Africa, it
should not be surprising that Arroyo was forced to implement the RVAT, the most
regressive tax of all, which generated P76.9 billion ($1.59 billion) in net
revenues last year, mostly taken from the pockets of ordinary consumers. He said that Arroyo failed
to point out that she also made drastic cuts in allocations for social services
to make these high and rising debt payments. Real spending per capita on
education of P1,506 ($31.19) in 2006 is 22 percent lower than in 2001. The same
can be said for health (P159 or $3.29, 25 percent lower) and social security,
welfare and employment (P532 or $11.02, nine percent lower). Government’s neglect of
education, coupled with worsening economic and social conditions, means that
millions of children are unable to obtain decent schooling. Out of every 100
children who enter Grade 1, only 66 percent finish elementary school, 43% high
school and 14% graduate from college. In 2006, some 2.5 million
children aged 5 to 17 had to work either to augment family income or merely to
survive. Over three-fourths of these children worked as laborers and unskilled
workers in psychologically and physically hazardous conditions. No amount of hype about
economic gains can therefore hide the worsening state of the people’s welfare
under the Macapagal-Arroyo administration, Africa said. Posted by Bulatlat © 2007 Bulatlat
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Macapagal-Arroyo
Responsible for Worst-Ever Fiscal Crisis – IBON
Posted by Bulatlat