As the flagship infrastructure program of the Duterte administration is expected to spur P89-trillion spending from 2017 to 2022, Senator Win Gatchalian this early is seeking a review of the status, sustainability, and risks accompanying these ‘Build, Build’ Build” projects.
“It is incumbent upon us senators, in the exercise of our power of the purse, to ensure that public funds diverted from health, education, and social services financing for debt services payment are properly appropriated,” Gatchalian stressed.
A Senate probe, he said would ensure a “judicious, prudent, and sound economic planning” by the government.
In filing Senate Resolution No. 759, which calls for a Senate inquiry into the financial requirements of BBB, the senator citrd thr need to closely monitor the debt obligations and modes of financing incurred and adopted by the Duterte administration for its “Build, Build, Build” Program.
Gatchalian also noted that the move will guarantee transparency, accountability, and prudent use of loans and other financing methods utilized by the government.”
The senator, who chairs the Senate Committee on Economic Affairs, explained that 40 out of 75 approved infrastructure projects as of July 2017 will be funded through Official Development Assistance (ODA), which comprises the bulk of expenditures amounting to P1.006 trillion.
He said the total outstanding debt of the national government as of December 2017 reached P6.65 trillion, while P329.05 billion was allocated for debt servicing in the 2018 General Appropriations Act (GAA).
This month, the Bangko Sentral ng Pilipinas reported that the country’s external debt-to-GDP ratio was 23.3% in 2017 – a five-year low and a 5.6% decrease from the 28.9% ratio recorded in 2013.