However, Villar said President Gloria Macapagal Arroyo assured him that part of the savings in the reenacted 2003 budget that will be placed under his discretionary funds will be allocated for the hiring of new teachers.
“The proposed 2004 budget cannot be passed anymore. The Senate has already adjourned. I feel strongly that this should not happen again,” Villar said.
In a recent forum in Cebu, Education Secretary Edilberto de Jesus said thousands of new teachers are needed to improve the quality of education.
De Jesus said the Department of Education (DepED) is badly in need of teachers to reduce the number of student-teacher ratio in every class.
Villar said De Jesus must talk with President Arroyo so they can discuss the matter as early as possible.
Meanwhile, Villar said 31 percent of the annual budget will be used to pay the interests alone of the country’s foreign debts.
Because only the interests are paid, these debts are growing every day, even if the government stops borrowing.
“The capital of the loan has not been reduced because we are paying the interests alone. So, ang utang natin ay pataas ng pataas (the debt keeps on increasing),” Villar said.
Villar said the government is still regularly borrowing money from foreign creditors because of the budget deficit.
In the 1980s, Brazil’s foreign debt was written off by the International Monetary Fund after a request that it be allowed to pay only the capital of the loan and the interest should be stopped. This has enabled Brazil to pay its foreign debts.
But Villar said the Philippines had missed that opportunity in 1986 when a revolutionary government was installed after the late President Ferdinand Marcos fled to the United States.