Borrowing P4 Billion A day

[JJReyes]

https://www.philstar.com/headlines/2023/08/07/2286790/government-forced-borrow-p4-billion-daily-lawmaker

According to The Philippine Star article dated August 7, 2023, quoting lawmakers, the government has to borrow P4 billion every day due to the difference between revenue and expenditure.  This is based on the 2024 Budget.  Add to that the interest payment and the "real" debt service expenditures would be around P5.2 billion daily.  I believe this daily amount does not include current international loans repayments, both principal and interest.  Hopefully the IMF and other lending agencies will bail us out with more borrowings in the billions.

I wonder if this will have an effect on foreign exchange.

[Old55]

Kinda funny how things go in Philippines.

They can print money in any amount but license plates are nearly impossible to produce.

[Lee]

From the article posted.

“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,” he added.

A lot of countries do this unfortunately. Citizenry often clamor for more free stuff (food stamps as a recent example) not caring that ones that come after them will often get stiffed with the bill.

[Dave Hounddriver]

1 hour ago, JJReyes said:

the government has to borrow P4 billion every day due to the difference between revenue and expenditure

If every country in the world does this, which would not surprise me, then the real losers are the ones keeping their cash in the bank to be devalued by consistent inflation.

[JJReyes]

14 hours ago, Dave Hounddriver said:

If every country in the world does this, which would not surprise me, then the real losers are the ones keeping their cash in the bank to be devalued by consistent inflation.

Every country in the world is doing this.  Those who tried to remain fiscally responsible are punished.  The example is Switzerland whose Swiss Franc continue to revalue. 

The result of borrowing is inflation.  I recall an economist who explained that you could purchase a nice suit during the 1920s paying with a one-ounce gold coin.  You can buy a similar suit today with the same one-ounce gold coin, now worth nearly $2,000.