Debt addiction lingers EDITORIAL 08/01/2010

Debt addiction lingers

EDITORIAL Click to enlarge 08/01/2010 When Gloria Arroyo snatched the presidency from former President Joseph Estrada in 2001, she inherited what the civil socialites, now backing Noynoy, vilified Estrada of having a mismanaged government, citing the worsening budget shortfalls after a P1.45 billion surplus in 1997 and a P50 billion deficit in 1998. In the first full year of Estrada’s abbreviated administration, he had a P112 billion deficit in 1999, followed by a P134.2 billion shortfall in 2000. Estrada, however, was voted to the presidency when the financial crisis that hit Asia was at its worst, resulting in a drop in trade receipts and poor collections from private businesses. Arroyo took over in 2001 and on her first year, she already exceeded Estrada’s worst budget gap by incurring a shortfall of P147 billion. Her administration was not able to tame the deficit to within the levels during Estrada’s tenure until 2006 when the budget gap was reduced to P65 billion but only after the enactment of the expanded value added tax law which raised the sales tax to 12 percent from 10 percent and widened its coverage to include previously exempt basic goods and services such as electricity and fuel.... MORE Source:  The Daily Tribune URL: http://www.tribuneonline.org/commentary/20100801com1.html

COMMENTARY EDITORIAL Debt addiction lingers FRONTLINE Pushing the limits of power FEATURE Afghan women swap burqas for police uniforms BLURBAL THRUSTS Drawerless desks juvenile way of solving Customs corruption C.R.O.S.S.R.O.A.D.S The straight path TABLETS OF STONE All about greed VIEWPOINTS Mining in an agricultural country