Words of wisdom from a Roman philosopher, Cicero (106 - 43 BC) nearly 2,100
years ago. There are minor differences in these two quotes, should be a result of different translations.
The budget should be balanced, the Treasury should
be refilled, public debt should be reduced, the arrogance of officialdom should
be tempered and controlled, and the assistance to foreign lands should be
curtailed, lest Rome become bankrupt. People must again learn to work, instead
of living on public assistance. - Cicero, 55 BC
The case of the Philippines on budget balance -- recent years and administrations, it never happened. National budget, P3.0 trillion this year, P3.35 trillion in 2017, perhaps
about P0.3 trillion will be borrowed. http://www.bworldonline.com/content.php?section=Nation...
A consequence of always on budget deficit, always borrowing, is high interest payment alone.
PH government debt interest payment alone, principal
amortization not included yet, in P billion:
2008, P272.22; 2009, P278.87
2010, P294.24; 2011, P279.00
2012, P312.80; 2013, P323.43
2014, P321.18; 2015, P309.36
Sige, utang lang ng utang ah.
The "freedom from debt" campaigners but have
little or no "freedom from (endless) borrowings" philosophy are
concerned too about the P6.4 trillion (as of around end-2015) PH public debt.
Living beyond our means is justified in period of
fiscal/economic crisis, natural disasters like huge earthquakes, landslides,
volcanic eruption, etc. Governments must borrow to replace damaged roads,
bridges, etc. In period of no crisis, no disasters, we should live BELOW our
means, have surplus and pay back old loans, and build up savings and reserves
for future emergencies.
Anywhere in the world today, very few countries and
governments do this. Majority are on the spend-spend-spend,
borrow-borrow-borrow, tax-tax-tax policies. And that is how almost all
governments in the planet are heavily indebted. With public debts of 40%, 100%,
200% of GDP.
Too many politicians, NGOs, consultants,
academics, etc. are corrupted by foreign aid -- from the UN, WB, ADB, IMF,
USAID, etc. There is endless drama on poverty and inequality so that there will
be endless flow of foreign aid.
When poverty was defined as "earning only $1/person/day" many years ago, poverty rate then was high. After 1-2
decades of growth in many countries, hundreds of millions were lifted from
poverty, and there was corresponding adjustment to $1.5 or $2/day/person, and
so poverty remains high again. When poor people move up the income ladder and
are no longer poor based on that definition, foreign aid officials and
consultants will likely revise the definition of poverty as earning $3/day/person and conclude that poverty remains
high and horrible, and so horrible amount of foreign aid and tax money from
rich countries should be needed.
One of my academic friends from UP shared this story with
me and other friends. After a USAID-funded poverty research that he conducted,
he presented it to USAID officials here in Manila. His opening statement,
"I am not sure about the outcome of these policy
recommendations we made. But one thing I am sure of is that before this
project, I was somehow poor. After this project, I am no longer poor." And
the USAID people were laughing; funny but true.
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More quotes from Cicero:
1. Laws are silent in time of war... No one has the right
to be sorry for himself for a misfortune that strikes everyone.
2. Freedom is a man's natural power of doing what he
pleases, so far as he is not prevented by force or law.
3. What gift has providence bestowed on man that is so
dear to him as his children?
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