Shocking FRONTLINE Ninez Cacho-Olivares 07/29/2010

Shocking

FRONTLINE

Ninez Cacho-Olivares

07/29/2010

After denouncing the Arroyo administration for its huge borrowing sprees in the past nine years, resulting in miring the country and its people in debt, there went Noynoy Aquino, through his Finance chief, Cesar Purisima, announcing that the Aquino government intends to borrow — hold your breath — a shocking P766.4 billion ($17 billion) plus another $200 million this year, to finance infrastructure spending.

The 2010 budget deficit is estimated at P325 billion, yet Aquino wants to borrow much more to plug the deficit, although Purisima says part of the funds will go into infrastructure spending.

Not even Gloria, or for that matter Erap, borrowed, in their first six months in office that kind of fantastic amount to plug the budget deficits.

And to think that which they will be borrowing for this year, is just a little less than half of Aquino’s proposed whooping P1.75 trillion budget!

If today, we, the taxpayers, are paying some P300 billion a year to pay the interest — and not even the principal — of the debts incurred by government, just think of how much more we will have to pay for incurring an additional P766.4 billion debt — and that’s just for this year. No doubt there will again be fresh borrowings next year, and the next, and the next. And whether or not there is no automatic appropriation, this still has to be paid, unless government wants to default on its payments..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/commentary/20100729com2.html