-The Burden of Debt The 14 th Congress Philippine Debt Audit Campaign Rebecca L. Malay Treasurer...

Economic and Social Overview of the Philippines

-The Burden of Debt

The Debt

It is anything owed, specially a sum of money that one person owes to another. A person who owes the debt is called the debtor, and the one whom it owed is the creditor. .

Causes

Effect

SolutionCREDITOR

DEBTOR

CAUSES OF DEBT:1. PREMATURE LIFESTYLE ENHANCEMENT

2. DESIRE TO GET RICH

QUICK3. UNEXPECTED EXPENSES

EFFECTS OF DEBT:

1.DEBTOR GAINS FUNDS2.DEBTOR-CREDITOR RELATIONSHIPS MAY BE GOOD OR MAY NOT3.SOMETHING TAKEN

AWAY FROM THE DEBTOR

MANAGE YOUR MONEY PROPERLY…

SOLUTIONS FOR DEBT:

The 14th Congress Philippine Debt Audit

Campaign

Rebecca L. MalayTreasurer

Freedom from Debt Coalition

Growing Debt Problem (in trillion pesos)

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Aquino Ramos Estrada Arroyo

NG Contingent Liabilities

National Government (NG) Debts

Debt Service

Gross Borrowings

Sources: Bureau of Treasury for NG Debts and Contingent Liabilities, Bangko Sentral ng Pilipinas on Gross Borrowings, and Department of Budget and Management (General Appropriations Act) for Debt Service

Is the debt problem over?

Rebecca L. MalayTreasurer, Freedom from Debt Coalition

Sources: Bangko Sentral ng Pilipinas on Gross Borrowings, and Department of Budget and Management for Debt Service

Arroyo: Largest Borrowed, Largest Paid (in trillion pesos)

0.520.37

0.57

1.46

0.560.78 0.71

2.05

3.092.83

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Aquino (87-92) Ramos (93-98) Estrada (99-00) Total (Aquino,Ramos, Estrada)

Arroyo (01-06)

Gross Borrowings

Debt Payments

Record Breaker

Rebecca L. MalayTreasurer, Freedom from Debt Coalition

Government Expenditures 1987-2006 (in billion pesos)

0

100

200

300

400

500

600

700

8001

98

7

198

8

198

9

199

0

199

1

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

Aquino Ramos Estrada Arroyo

Debt Service (Interest plus Principal)

Education

Health

Social Security

Who suffers?

Rebecca L. MalayTreasurer, Freedom from Debt Coalition

Average national spending for education by administration show that based on 2000 prices, the amount spent per pupil fell during Arroyo’s time

Marcos (1981-85) : Php 3 027Aquino (1986-92) : Php 4 478Ramos (1993-95) : Php 4 959Estrada (1999-01): Php 5 830Arroyo (2001-04) : Php 5 467

*former Budget Secretary Benjamin Diokno, “Real State of the Nation”, 20 July 2007

Education Spending*

Health Spending*

Combined (NG and LGU) per capita health spending show that

Marcos (1981-85) spent Php 240Aquino (1986-92) Php 278Ramos (1993-98) Php 321Estrada (1999-00) Php 360Arroyo (2001-04) Php 303

*former Budget Secretary Benjamin Diokno, “Real State of the Nation”, 20 July 2007

Philippine s’ debt

Each Filipino owes

Php 47,039 to local and foreign

creditors

-As of April 2010

Philippine s’ debtDec. 13, 2010 Press Release:As of September 2010, the

National Government debt was recorded at

Php. 4,664.2 Billion-a decrease of Php. 27 Billion or 6% from end August 2010

level of Php 4,691.6 billion

The 2011 Budget

at a Glance

2010 2011

Proposed Budget

P 1.540 T

P 1.645 T

Local Government Units

P 297.5 B

P 300 B

GOCC P 39.3 B P 23.3 B

Dep’ts 2010 2011DepED P 175 B P 207.3 B

DPWH -NA- P 110.6 B

DND P 57.8 B P 104.7 B

DILG P 66.5 B P 88.2

DA P 41.2 P 37.7

Dep’ts 2010 2011DSWD P 15.4B P 34.3 B

DOH P29.3 B P 33.3 B

DOTC P 17.2 B P 32.3 B

DOJ -NA- P 14.3 B

DAR -NA- -NA-

THANK YOU

:)

Presenter: Ms. Stefany May P.

IndicoIII-6 BEEd