Opposition Rep. Ferdinand Gaite (Bayan Muna Partylist) on Tuesday, Nov. 2 called on the Duterte administration to repeal the automatic debt servicing law that the late former President Ferdinand E. Marcos has decreed.
Gaite said government should realize that Philippines has become the biggest borrower of the World Bank, thus, would require a larger cut of the national budget annually in amortizing its huge loans.
”With the Philippines now being the biggest borrower of the World Bank, it would be best if the Duterte administration rethink its priorities and repeal the Marcos-era automatic debt servicing law. If not, then less and less of the national budget would go to the basic and social services intended for Filipinos," said Gaite in a press statement.
Gaite said the legislative proposal for the repeal of Presidential Decree No. 1177 is currently pending in the House of Representatives and merely needs prioritization.
"Malacañang should seriously study and prioritize House Bill 4087 or the Repeal the Automatic Appropriation for Debt Service Bill, which will amend Section 31 of Presidential Decree No. 1177, otherwise known as the “Budget Reform Decree of 1977,” he said.
The opposition lawmaker explained that Marcos issued PD 1177 merely to appease international lending institutions.
The presidential decree proides for automatic appropriations for public debt service.
HB 4087 also proposes to amend Section 26, Chapter 4, Book VI of Executive Order No. 292, otherwise known as the “Administrative Code Of 1987,” which reiterates in toto Section 31 of PD 1177.
"If enacted, this will remedy a long-standing defect in the government’s budget policy – the indiscriminate payment of all public debts including questionabe loans, regardless of the grave diversion of finances from basic service,” said Gaite.
“It affirms and asserts the obligation of the State under Article II, Section 9 of the 1987 Constitution to “promote a just ...through policies that provide adequate social services.” he added.
"The bill’s passage seeks to pave the way for a more rational and humane budgetary process. It seeks to bring hundreds of billions of pesos annually allocated to debt servicing and instead redirected to benefit the people,” said Gaite, a member of the Makabayan bloc.
“The excesses of past administrations – including the Marcos dictatorship until the Duterte administration – will no longer hold the country hostage, and the "Trojan horse" of profligate, onerous, and fraudulent loans will cease. Government can then begin to prioritize badly needed social services,” he stressed.