Pandemic costs push up government debt beyond P11 trillion in May

The government’s outstanding debt sustained an uptrend in May to breach the P11-trillion mark amid the Duterte administration’s continued borrowing binge to fund ballooning pandemic expenses......»»

Category: financeSource: philstar philstarJul 5th, 2021

Christmas 2020 for workers and farmers

HOTSPOT Tonyo Cruz Two things workers are looking forward to at the end of each year are the 13th month pay and the Christmas bonus. And it seems about two million workers may not get any 13th month pay at all, if the Duterte government would have its way. The reason? Because of the pandemic. In reaction, Kilusang Mayo Uno chairperson Elmer Labog  issued his shortest statement yet this year, unable to hide labor’s frustration: “It is the government’s responsibility to bail out MSMEs in times of emergencies.” Indeed, it is the state’s obligation to support and prop up micro, small and medium-scale enterprises especially now in the time of pandemic. By saying MSMEs could dispense with the 13th month pay, the government is practically passing on its responsibility to MSMEs. Workers continue to give their share through the cheap, underpaid and overstressed labor power that makes sure MSMEs continue to function and perform their role as main engines of the economy. The government must do its job: Bail out the MSMEs. It is quite surprising that the Duterte government seems disinterested in bailing out MSMEs, considering the avalanche of news about the borrowings here and there. According to Sonny Africa, executive director of the think-tank Ibon Foundation, the borrowings has reached a historic high: “It took 118 years for the country’s debt to reach P6.1-trillion in 2016. President Duterte is taking just six years to more than than double that to P13.7-trillion in 2022.” Again, the reason for the borrowing has been “because of the pandemic.” Regardless of where the money goes, and whether or not MSMEs and workers received only a drop from it, they would pay the entire debt through more and higher taxes for years to come. Workers are not asking for something they have not earned through hard work. They earned that 13th month pay. It is not an optional thing. It is part of the law. The pandemic should oblige the state to bail out our MSMEs to enable them to fully function, and to give the workers’ their due under the law. Workers have given and lost a lot because of the pandemic. Workers have not asked for free rides to work, but the government fails to provide adequate and safe mass transport. Workers have asked for free mass testing in their companies and communities, but the government has other ideas. Workers and their families would have fared better with unemployment benefits amid the dismal pandemic response of government, but it seems the same government wishes to push them instead to pawnshops and loan sharks. We haven’t even factored in the laid-off, underemployed and unemployed workers, as well as the undetermined number of overseas Filipino healthcare workers stranded in the country since April. They all don’t wish to be “patay-gutom” and “pala-asa”.  They don’t wish to stay unemployed and be dependent on aid. They are ready to work and earn their keep. But since the president made policy decisions affecting their ability to obtain work, it is the government’s obligation to bail them out as well. The situation of our nation’s farmers is no different. For instance, rice farmers continue to produce our national staple. The pandemic made even worse the effects on them of the combined power of policies such as rice tarrification, the stranglehold of Big Landlords, the vast influence of rice cartels, and the continued operation of illegal rice importers. Price monitoring by Bantay Bigas and the Kilusang Magbubukid ng Pilipinas reveals the outrageously low palay prices nationwide, which means ruin to our nation’s rice farmers: Negros Occidental and Bicol region P10; Capiz P10-P11; Caraga P11; Tarlac P11-12; Ilocos Sur and Nueva Ecija P11-13; Camarines Sur P11.50-14; Bulacan and Mindoro P12; Isabela P12-P13.50; Pangasinan P12-P12.30; Antique P12.50; Agusan del Sur P13; Davao de Oro P13.14; Davao del Norte, Surigao del Sur and South Cotabato P13.50; North Cotabato P14; and Lanao del Norte P15. If you look at it, plantitos and plantitas today pay 20 to 50 times more for ornamental plants, compared to the prices traders and the NFA offer to our farmers. According to Bantay Bigas and KMP, the government procures way less than 20 percent of the produce of rice farmers.  And then we hear that the NFA would rather import rice from other countries, at pandemic-affected prices at that. Without any state intervention, by way of NFA buying rice farmers’ produce at P20 per kilo, and providing loans to farmers, there could be worse rural poverty in the coming months and years. Between our workers and farmers, their families have been made to sacrifice a lot since March, with prices of basic goods spiking, with new and higher expenses arising from online classes for the children. There cannot be no aid for them.  Neither should workers and farmers shoulder the burden of the failure or refusal of government to provide funding for bailouts sorely needed by MSMEs, and be forced to accept new national debts to pay for policies such as rice tarrification and importation. The government knows the scale of the problem. The Department of Labor and Employment says 13,127 companies have either laid off workers or permanently closed. The response cannot be “pass the burden to workers”. The answer should be: “the state must do everything to rescue the companies and the workers.” OFWs across the world should be familiar with bailouts and economic protections because of the pandemic. Many countries that host OFWs enacted huge bailouts and stimulus to their economies, partly so that migrant labor could continue to be employed. They enjoy health insurance, and special COVID19 coverage. Governments handed out checks to both citizens and companies. Is it too much to ask that the same be done in our own country? Or do Filipinos have to go abroad to experience such social and economic protections?.....»»

Category: newsSource: NewsOct 9th, 2020

Philippines debt hits record P11 trillion

The country’s total debt stock hit a new record high in May, passing the P11-trillion mark as the government borrowed more from the domestic market to finance its pandemic response......»»

Category: financeSource:  philstarRelated NewsJul 5th, 2021

NG debt rises to new record high of P10.77 trillion

The national government’s total outstanding debt rose to a new record high of P10.774 trillion in end-March, still mostly domestic borrowings, to fund its pandemic response, the Bureau of the Treasury said yesterday......»»

Category: financeSource:  philstarRelated NewsMay 4th, 2021

Pandemic costs bloat gov t debt to new record-high in March

The government continued to accumulate more debt in March as the country’s needs amid the lingering coronavirus pandemic grow......»»

Category: financeSource:  philstarRelated NewsMay 3rd, 2021

NG debt rises to P10.4 trillion in February

The national government’s total outstanding debt rose to a new record high of P10.405 trillion as of February, as borrowings were ramped up to finance its pandemic response......»»

Category: financeSource:  philstarRelated NewsMar 29th, 2021

Government borrowings breach P3-trillion mark in November

The government's debt burden continued its uptrend from January to November, with gross borrowings soaring beyond the P3-trillion mark as the country's pandemic needs grow......»»

Category: newsSource:  philstarRelated NewsDec 24th, 2020

Government debt increased by P658.8 billion in October

The government’s total outstanding debt as of end-October 2020 rose by P658.81 billion, or 7 percent, to P10.027 trillion from the end-September level, driven mainly by the availment of external and domestic loans used to fund the budget deficit amid the COVID-19 pandemic, the Bureau of the Treasury said Friday......»»

Category: financeSource:  thestandardRelated NewsDec 4th, 2020

Government debt accumulates the most in August during pandemic

The outstanding debt stock climbed to P9.62 trillion as of last month’s end, up 4.92% from the previous month......»»

Category: financeSource:  philstarRelated NewsSep 30th, 2020

Government debt hits P1.86 trillion in 7 months

The government’s gross borrowings from January to July soared by more than 121 percent to P1.86 trillion from P840 billion in the same period last year as the country borrowed more to meet its pandemic needs, according to the Bureau of the Treasury......»»

Category: financeSource:  philstarRelated NewsSep 7th, 2020

Government hikes borrowings by 12% to P1.93 trillion in H1

The government ramped up its borrowings in the first semester to nearly P2 trillion in an effort to speed up the economy’s recovery from the impact of the pandemic......»»

Category: financeSource:  philstarRelated NewsAug 9th, 2021

Senators to scrutinize ballooning foreign debt

Senators are determined to hold executive sessions when the chamber tackles the P5.024-trillion budget proposal for 2022 to force government officials to provide details as to why the country incurred debts much more than actually needed......»»

Category: newsSource:  philstarRelated NewsAug 8th, 2021

Pandemic funding drives gov t debt to new record-high P11.2-T

The government’s outstanding debt continued its ascent in June to reach a new record-high, fueled by the Duterte administration’s borrowing spree to fund its pandemic response......»»

Category: financeSource:  philstarRelated NewsJul 29th, 2021

Pandemic-induced debt growth may have peaked already — Dominguez

The pandemic-induced rise of government debts likely hit its peak already, and a return to pre-crisis fiscal health could happen late next year, Finance Secretary Carlos Dominguez III said Wednesday......»»

Category: financeSource:  philstarRelated NewsJul 21st, 2021

Swelling debt to slow economic momentum

The Freedom from Debt Coalition said the country’s record-high P11-trillion debt would make it difficult to revert the economy’s momentum to its pre-pandemic levels......»»

Category: financeSource:  philstarRelated NewsJul 20th, 2021

BIR collections breach P1 trillion, surpass target

The Bureau of Internal Revenue collected more than P1 trillion in taxes as of end-June, surpassing its target by over P16 billion, as the agency improves its performance to beef up the government’s resources for pandemic response......»»

Category: financeSource:  philstarRelated NewsJul 16th, 2021

Gov& rsquo;t debt breached P11-t level in May, says Treasury

Government debt reached P11.07 trillion as of end-May this year, mostly from domestic borrowings, data from the Treasury show......»»

Category: financeSource:  thestandardRelated NewsJul 6th, 2021

Higher debt payments plunge BOP into deficit

More dollars flowed out of the country in May as the national government paid foreign debt that ballooned as a result of higher borrowings to augment funds for pandemic response, the Bangko Sentral ng Pilipinas said......»»

Category: financeSource:  philstarRelated NewsJun 23rd, 2021

Government debt swells to record high P11 trillion

The national government’s outstanding debt rose to a fresh record high of P10.991 trillion in April, boosted by both local and external borrowings, the Bureau of the Treasury said......»»

Category: financeSource:  philstarRelated NewsJun 3rd, 2021

Pandemic funding bloats gov t debt to new record high in April

The government continued to accumulate more debts in April to hit a new peak, driven by fresh borrowings at home and abroad to fund the country’s ballooning pandemic expenses......»»

Category: financeSource:  philstarRelated NewsJun 3rd, 2021

Signs of recovery convince S& P to keep Philippines investment grade

Debt watcher S&P Global Ratings kept the Philippines’ investment grade rating, citing emerging signs of economic recovery that could ease the strain on the government’s balance sheet that's tarnished by the pandemic......»»

Category: newsSource:  philstarRelated NewsMay 27th, 2021