Till ?15.18 trillion debt do us part

How can this nation grow if about one-third of its annual budget is allocated for payment of our external and domestic debt, both principal and compounded interests? The other third of the budget goes to public officials' and personnel's salaries and privileges, and the balance to the pockets of corrupt officials and government suppliers and contractors. All developments are funded by debts.

According to Wikipedia, as of February this year, the national debt was ?15.18 trillion. By this time, and at the rate by which interests are being compounded each day and automatically increased due to the deteriorating value of the Philippine peso, and the continuing rise of the value of the US dollar, our financial obligations are fast approaching the ?16 trillion level. The Central Bank, the Finance secretary and the government's economic team that includes the NEDA secretary general, are keeping mysteriously silent on this huge, huge financial burden being put on the shoulders of the 117 million Filipinos, especially the taxpayers.

As of the end of 2023, the national debt was already ?14.150 trillion. We are talking trillions here with a big T. It was only ?13.418 in 2022. It grew by 60.9% in only 12 months. Our economic managers are not doing anything to mitigate the impact of too much escalation of the amount of national debts. From the Duterte administration which left more than ?13 trillion in debt due to the pandemic economic meltdown, the Marcos government allowed the debt to escalate to what is now ?15.18 trillion. By the end of this year, this huge payable shall have escalated to ?16 trillion.

Before reaching the middle of his term, BBM allowed the upsurge of debt by more than ?3 trillion. And the government keeps on borrowing more. There is mindlessness on the far-reaching consequences of all this overspending by the government and putting the burdens of paying off to the future generations. When Duterte assumed the presidency, President Aquino left him with only ?6.09 trillion debt. When Duterte left office, he left BBM with a payable of ?13.418 trillion. His only palpable excuse was the high cost of containing the COVID-19 pandemic. GMA left a debt of ?4.718 trillion in 2010. Erap left with less than ?2 trillion in 2001.

Our big headache is because our debts are in dollars and so we lose a lot whenever our peso is devalued and the dollar rises in the global market. As of September this year, our total external debt stood at $130.18 billion. Our gross international reserves at that point in time were only $128.69 billion. Thus our external borrowing alone exceeded our reserves. This is not to account for our internal borrowings which are more than double our external debts. Our debt service ratio is deteriorating and we need to be concerned as this ratio refers to the ratio of our principal and interest payments to exports of goods and receipts from services and primary income.

This unprecedented escalation of the Philippine debt should alarm our economic managers in particular and the Filipinos in general because the foreign borrowings did not translate to development that can improve the quality of life of the people and the countries' competitive standing in the global economic arena. We keep on borrowing so that we can pay our past borrowings, not because we are building pillars for national development, much less to enhance the quality of life for all.

There should be a law that compels presidents to pay off all the debts incurred by their respective administrations. As of today, and for the longest time in the future, we are paying for the debts incurred long ago. Our grandchildren and great-grandchildren, even before they are born, are already condemned to pay the debts of our grandparents and great-grandparents.

And yet, our top officials go on tantrums and childish outbursts whenever they are asked how they spent millions in borrowed money in the guise of being Confidential and Intelligence Funds. They should be hanged.