The Philippines should pay its outstanding debts first before pushing for the bill seeking to establish the Maharlika Investment fund, an economist said on Tuesday, Dec. 6.
In an interview during DZRH’s Balansyado, Ateneo De Manila University Department of Economics chairperson Alvin Ang said it may be difficult to put the sovereign fund for investment while the country has looming financial obligations.
“Kasi kung ikaw ay may utang pagkatapos gusto mo mag-invest. Ano ang uunahin? Magbabayad ka ba muna ng utang o mag i-invest ka?” he said.
The latest data from the Bureau of Treasury (BTr) shows that the country has an outstanding debt of Php 13.52 trillion as of end-September.
Under House bill 6398 written and filed by House Speaker Martin Romualdez, the government will pool Php 275 billion from the national budget and four government financial institutions (GFIs) to maximize the profitability of investible government assets.
Ang said the sovereign funds to be used for investment activities should generate more money.
“Kung hindi kikita ‘yung i-invest mo, edi double babayaran mo. Nagbabayad ka ng utang at nagbabayad ka ng investment,” he said.
Ang also explained that a sovereign fund usually comes from the surplus in the government’s budget and not from GFIs.
He cited examples like Middle Eastern countries that are known for being the largest oil producers in the world.
“‘Yung surplus na kinikita nila [sa pagbebenta ng langis], pwede nilang itabi dahil hindi naman nila ginagamit. 'Yung iba naman, katulad ng Singapore. Meron din silang surplus dahil they are the top trading hub in the world,” he said.
Ang said the government should reassess its priorities and study if the timing of the bill is right.
“Hindi ako against the fund per se pero ayun ba ang mahalaga ngayon? Unahin ba natin ‘yon? Tama ba ang timing natin ngayon? At saka ‘yung legal issues, dapat masagot lahat ‘yon bago mo gagawin ‘yon,” Ang said.
Several lawmakers have also aired their reservations on the proposed Php 275 sovereign wealth fund recently.
Senate President Juan Miguel ‘Migz’ Zubiri earlier said a group of Senators will be formed to look into the necessity of the proposed measure for this involves public funds “borne out of the taxes from the sweat and tears” of taxpayers.
