Government not going bankrupt, budget chief says

Budget and Management Secretary Benjamin Diokno assured the nation yesterday that the government is "financially solid," saying that the National Treasury has "withdrawable" funds amounting to P100 billion.

Diokno told reporters that half of the P100 billion, or P50 billion, are deposited at the Bangko Sentral ng Pilipinas and earning interest for the government.

Diokno said the remaining P50 billion have been deposited by the national treasurer in other government banks like the Land Bank of the Philippines.

"We can withdraw them anytime," he said. "All of this money are withdrawable."

Diokno allayed fears over the government’s swelling budgetary deficit of P80 billion, denying rumors that it is about to declare bankruptcy.

"It’s not true," he said. "It’s totally false and I think that is one of the disinformation going on around the mills."

Diokno said President Estrada’s economic managers have decided to give up the third and last tranche of the extended fund facility from the International Monetary Fund, which required the government to limit its budgetary deficit to P62.5 billion by year’s end.

"The decision is not to draw (IMF last tranche), if it means that we have to force the issue, in other words, to get the P62.5 billion, to be able to draw, we feel that it will do more harm than good in drawing because it might result in sacrificing essential public services," he said.–Marichu Villanueva