'The question to the Filipino people is: how should we use our precious public funds – to pay our national debt and reduce the crushing debt servicing every year, or put the funds as equity of the MIF?'
This was delivered by former Supreme Court senior associate justice Antonio T. Carpio on Friday, December 16, during 1Sambayan’s online forum, “Maharlika Investment Fund: Yaman o Utang ng mga Susunod na Henerasyon.”
Every year, Congress enacts the General Appropriation Act which authorizes disbursements from the revenues accumulated during the corresponding year in the General Fund. For several decades now, the revenues accumulated yearly have always been less than the expenditures for the corresponding year. In short, the national government has always been in deficit – expenditures have always exceeded revenues every year.
The total debt of the national government is projected at P13.64 trillion as of end-December 2022. Our debt-to-GDP ratio is now 64%, up from 39.6% in 2019, an increase of 24.4%. A debt-to-GDP ratio of more than 60% is considered not a healthy situation in terms of capacity to repay the debt. A debt-to-GDP ratio of more than 60% means we should start reducing our national debt, not increasing our national debt.
For 2023, the debt servicing under the proposed 2023 GAA is a staggering P1.6 trillion – or 29.8% of the proposed 2023 national budget, with P1.02 trillion for amortization of principal and P582.3 billion for payment of interest. This means that almost 30% of our national budget will go to debt servicing, and over P.5 trillion of that will go to interest payment alone. In addition, the projected budget deficit for 2023 is 6.1% of the national budget, or P1.
The question to the Filipino people is: how should we use our precious public funds – to pay our national debt and reduce the crushing debt servicing every year, or put the funds as equity of the MIF in the hope that its investments will earn more than the interest payments that the government pays annually for the borrowings to put up the equity of the MIF?
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Balisacan: State-owned banks infusing all investible funds into Maharlika fund not a good ideaAt his confirmation hearing before the Commission on Appointments, Socioeconomic Planning Secretary Balisacan was questioned on his view on having the Land Bank of the Philippines and DBP placing all their investable funds into the sovereign wealth fund.
Baca lebih lajut »
Can the MIF be made corruption-free?Last of 3 partsWHILE everyone else tried to focus on the various aspects of the Maharlika Investment Fund (MIF) bill, a distressed academic asked me, in a language more picturesque...
Baca lebih lajut »
Salceda breaks down 21 last-minute amendments to MIFDespite being in the legislative mill in the House of Representatives for a total of just 18 calendar days, the proposed Maharlika Investment Fund (MIF) underwent a lot of revisions and fine-tuning.
Baca lebih lajut »
Passage of MIF before Xmas break assuredMSOpinion Passage of MIF before Xmas break assured “The main objection against the GSIS and the SSS inclusion was the use of their pension and contribution funds for the MIF, which leaves only the Land Bank and the DBP as a source of the fund”
Baca lebih lajut »
On Diokno’s bid, PBBM certifies MIF urgent - BusinessMirrorAT the behest of Finance Secretary Benjamin E. Diokno, President Ferdinand R. Marcos Jr. has certified as urgent a bill creating the country’s Maharlika Investment Fund (MIF). Diokno wrote Marcos on December 13 requesting the certification as urgent of House Bill (HB) 6608, which seeks to establish the MIF, the country’s first sovereign wealth fund
Baca lebih lajut »
House leadership highlights minority bloc's inputs on approved MIFWho says that the all-powerful House majority bloc had sole input on the controversial Maharlika Investment Fund (MIF) Bill?
Baca lebih lajut »