The gloom of a huge deficit

It’s surprising how the NMI has accumulated such a huge public debt (deficit) to the tune of some $53 million that could swell to as much as $100 million when all bills are tallied dating as far back as 1995.

This makes for a stronger financial discipline on how we spend what little else is saved by the local government to meet its obligations and still be able to provide the most basic of public services, i.e., education, public health and public safety.

Perhaps the boom years of the eighties was taken for granted as to let our guards down when in fact the first order of business should have been a dedicated effort to build a reserve for that rainy day.

The rainy days are here and we’ve found out rather late that not only did we forget our raincoats in the back seat of the car, but we’ve also left our umbrellas at home. As such, we’d all be drenched with red ink as we attempt to head for shelter somewhere, including the figment of our imagination.

Coupled with the constant assault from the Asian Crisis, it won’t be surprising if by the second month of next year, reduction in work hours shifts completely to reduction in force. As difficult to swallow this bitter pill as it may be, we hope we won’t have to buckle down to the latter issue as a matter of necessity.

This serious financial setback doesn’t leave much room for maneuvering or allocating taxes to purposeful uses either. Thus, it is really high time for more belt tightening in how public funds are spent amidst predictions that the current crisis has yet to bottom out.

Indeed, economic recovery in Japan and Asia would be slow even if it means faltering as they struggle to save the rest of the global village from complete meltdown. We too would eventually get our share of this ripple effect as investors head to financial markets with bullish attitude to infuse funds in the best way they know how.

Most of these investors would make it without having to deal with past mistakes. The Asian region would once again return with a huge roar to regain their once healthy economic posture. And most tiger countries would return to normalcy however slow the process.

We can ably muddle through this hardship if we can collectively employ our common sense to protect what has given our people their family sustenance, including the much needed funds being remitted by the garment industry to our local coffers that pay for basic public services today. It’s the only industry that has withstood the ravaging effects of the Asian crisis. That it works makes it mandatory that all must steer clear of the crab theory where we pull down the most successful people to our detriment.

In short, we must learn to ride on the success of others!