Corruption, Xtravagance
Tuesday, March 6th, 2007Corruption and wasteful extravagance should be blamed for the rising national debt that had reached P3.908 trillion as of November 2006.
The foreign debt has gone so much that 71 percent of the gross domestic product is now needed to service it. President Gloria Macapagal-Arroyo, in 2004, admitted as much when she cited interest and capital payments as justification for the imposition of additional taxes.
Despite the already huge amount of foreign and domestic debts, the government intends to borrow more this year, $2.466 billion from foreign creditors and P260.1 billion from local sources.
It wouldn’t be so bad if the money goes to priority projects. But that is not the case.
A great portion is dissipated in projects whose only purpose is to give corrupt officials an opportunity to enrich themselves. An example is the construction of bridges that lead to nowhere.
I acknowledged that foreign debt servicing has gone down to $5.63 billion this year from $7.1 billion last year. Still, the amount is a burden that could very well lead to economic collapse.
To prevent that eventuality, there is an urgent need to change this government, which seems to have developed an addiction to the quick fix represented by borrowing. And the installation by the electorate of a different set of legislators is a good start.
I vow I would move for a review of the government’s borrowing policy if the opposition gets to dominate Congress after the mid-term elections.
There is need to review the law allowing the president to borrow money without congressional approval. The people ultimately bear the burden of paying back the capital and servicing onerous interest requirements. It is only logical that they, through their representatives in Congress, are consulted on the matter.