Sunday, March 18, 2007

Domestic Borrowings 1987 to 2005

While the preceding post compares foreign borrowings among the different post-EDSA Philippine governments, this one does the same for domestic borrowings. The source data is the same (courtesy of PCIJ). In addition, all the nominal peso values where divided by the GDP deflator* for each year.
Domestic Borrowings 1987 to 2005
YearBillions (PHP) nominalGDP Deflator (1985=100)Billions (PHP) adjusted
198758.62110.752.95
198847.34121.339.03
198937.21132.328.13
199030.10149.520.13
199164.72174.237.15
1992148.15188.078.80
1993-16.99200.8-8.46
19944.62220.92.09
199558.65237.624.69
199662.58255.824.47
1997-2.43271.7-0.89
1998105.31300.135.09
1999160.45324.249.49
2000145.33344.842.15
2001206.36366.856.26
2002235.99383.361.57
2003290.28397.373.06
2004383.78421.291.12
2005396.82446.688.85
*Source of GDP deflator values: here and here.


Graphically represented above, it can clearly be seen that the Arroyo Government, compared to previous administrations, has been the most aggressive by far in terms of domestic borrowings. The average domestic borrowings per year per administration are as follows:

Cory Aquino - 35.48 Billion Pesos** per year
Fidel Ramos - 20.11 Billion Pesos per year
Erap Estrada - 42.24 Billion Pesos per year
Gloria Arroyo - 74.17 Billion Pesos per year (so far)
**1985 equivalent

Something to keep in mind everytime the Arroyo admin congratulates itself in its management of the budget deficit.

Update 03-25-2007: Over at mlq3's, an informative discussion on Budget related matters here (by hvrds, Ca T, Justice League, MB etc).

Update 08-13-2008: Related updates from the PCIJ.

2 comments:

mschumey07 said...

cvj,

Nice piece bro. The only reason the deficit is going down now is mainly because of the Evat and the huge OFW remittances. Without these, the deficit will balloon. The practice of borrowing to pay for another debt is also a contributor to the smaller deficit. But for sure this practice will eventually catch up and we will find out how deep in mud we really are.

cvj said...

Thanks Schumey. It's astounding how Arroyo is fond of taking credit for 'solving' problems she created in the first place. IMHO, deficit spending per se is not bad if it goes to the right investments, but if you combine the above with the record level of corruption during her term, we get a sense that all of these outlays is not money well spent.