Press Release 

6 August 2023

The proposed 2024 national budget of P5.767 trillion translates to average daily spending of P15.8 billion, but only P11.7 billion of which is supportable by revenues, leaving a P4 billion hole which must be plugged by debt.

“To fully grasp the dimensions of the budget, you have to compute it on a daily basis, to fully appreciate the enormity of both spending and borrowings,” House Deputy Speaker Ralph Recto said.

“In easy to remember figures, this is the lowdown : Gagasta ng P15.8 billion bawat araw. Ngunit P11.7 billion lang ang kayang pondohan ng buwis. Kaya may P4 bilyon na dapat utangin. Kada 24 oras,” he said.

“Kung base naman sa actual na disbursements, mga P3.7 billion ang pang-araw-araw na gastusin ang kailangang punuan,” Recto said.

Recto said that while the “art of budget marketing perfected by all governments” focuses on what will be spent, “what is downplayed is the enormous money required to finance it.”

“Programs that dazzle are highlighted while muting the cost, a great portion of which are paid by debts left to the next generation to pay,” Recto said.

Payment for interest alone on the burgeoning public debt will be around P1.8 billion a day next year, he said.

“But it doesn’t give the whole picture kasi pambayad lang sa interest ang nasa national budget. ‘Yung bayad sa principal, ‘yung amortization, na automatically appropriated, hindi kasama sa national budget,” Recto said.

However, if the principal amortization requirement of P3.4 billion a day is added to the interest payment of P1.83 billion, “real” debt service expenditures would be around P5.2 billion daily, Recto said.

“’Yan lang ang bayad sa utang, hiwalay ang uutangin,” Recto said, referring to the scheduled interest payments of P670 billion and P1.24 trillion in principal amortization in 2024.

Gross borrowings next year – to finance the deficit, debt and development –

has been forecasted to reach P2.46 trillion, or “about P6.7 billion daily,” Recto said.

The former Senate President Pro Tempore said that at almost P1.7 trillion annually, “Personal Services”, which is expense class term for the salary and other compensation of national government employees and pension of uniformed personnel “would come up to P4. 6 billion a day.” 

“Ganyan kalaki ang ating payroll at ibang kaakibat na gastos. Kung kada limang oras, mga isang bilyon. Kasi naman marami tayong kawani – sa DepEd na lang ay isang milyon na,” Recto said.

But while government will be spending P15.8 billion a day, BIR and the Bureau of Customs are projected to only collect P8.3 billion and P2.7 billion daily respectively, or a combined P11.16 billion a day.

“In fact, ‘yung tinatayang arawan na koleksyon sa sales tax on goods na P1.7 billion, kulang pa sa P2.53 billion daily expenditures natin para sa sektor ng edukasyon,” Recto said.

Because not all that will be appropriated will be disbursed, the deficit to be financed will be about P3.7 billion daily, Recto said.