Sectoral distribution, Philippine budget 2012

The Philippine government’s budget is now rising by nearly P200 billion per year. P1.47 B last year, P1.64 B this year, and P1.82 B next year. Next year’s budget/projected GDP ratio will be around 16.5 percent. If budget by local governments are included as they have many other revenue sources that allow them to have larger spending, the government expenditures/GDP ratio would be around 20 percent.

Here is the sectoral distribution of the budget. We removed smaller-budget sectors under Economic Services and Social Services so that readers can easily spot the big budgeted sectors.

Interest payment from the huge public debt of the government remains a big drain. From 2010 to 2012, that item alone averages P328 billion. Like the recently-concluded US debt crisis, future debt crisis of the Philippines will be triggered by ever-rising debt obligations, principal + interest payment. We hope the Philippine  government will learn a lesson from the US debt crisis.

Advertisements
Explore posts in the same categories: Uncategorized

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: