NAGA CITY--Reacting to a statement released over the weekend by Sen. Francis “Chiz” Escudero saying that the national debt doubled under the administration of President Gloria Macapagal-Arroyo, Albay Governor Joey Sarte Salceda said the opposition senator failed to account the economic growth experienced during the term of the President.
“Using the same figures [used by Escudero], [it can be deduced that] the national debt radically improved from being 78 percent of the [country’s] gross domestic product (GDP) to 52 percent of GDP,” said Salceda, an economic adviser to the President and former cabinet secretary, told the Inquirer on Sunday.
“Foreign debt also improved from 71 percent of GDP to 35 percent of GDP,” he added referring to 2008 data. Salceda said the statement of the senator would only highlight the growth in the GDP of the country felt during the term of the President.
The gross domestic product (GDP) or gross domestic income is one of the measures of national income. It is the total value in US dollars of all final goods and services produced within a country’s borders in a given year.
Escudero, touted as a possible contender for 2010 Presidential elections, also said in his statement that the Arroyo administration was validating extensive borrowing under the guise of economic stimulus.
“The plan to expand government spending should be done without enlarging national debt and indenturing future generations,” Escudero said.
He said when President Arroyo assumed power in 2001, the national debt stood at P2.004 trillion.
“This has since doubled to P4.221 trillion by end of last year, which puts to shame Legacy’s double-your-money promo,” he said. He said the national government paid more in interest and principal payments for the loans it secured from 2001 to 2008.
“What rubs salt to the wound is that during the same period, P4.436 trillion was used to pay for the debts,” he said.
He said that with the figures, Filipinos would have to shell out P1.448 billion a day to pay for the loans.
“The government’s credit panhandling will continue this year with a conservative deficit target of P177 billion, which translates to a daily debt of P484 million,” he said. He said that based on the Arroyo administration’s management record, there was reason to fear that financial crisis would be used as “smokescreen for a borrowing spree.”
“We should carefully spend what we already have before we seek out credit,” he added.
“The figures speak for themselves. We don’t even have to extrapolate,” said Naga City Vice Mayor Gabriel Bordado.