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Friday, August 24, 2012

Poverty Reduction and Inclusive Economic Growth Should Take Place Now, Not in 2050

When the drama of the floods and the passage of Robredo subsides, it will be business as usual. So what has Aquino got to show after impeaching Corona, blatant vote buying using the CCT subsidy, awarding PPP contracts to his cronies, frontloading the RH bill, bullying the JBC to take De Lima as Chief Justice contender, blaming Arroyo for everything that’s wrong with the Philippines, and protecting PLDT, Shoemart, Meralco – and the vested interests that make up the Makati Bullshiter Cronies country club.

I had to chowdown a boatload of headlines and stories – separating the chaff from the grain. It’s not enough that I read the news, but I had to question the data and the interpretation of the data. True enough, a bigger picture emerges.

BIGGER GOVERNMENT / BIGGER TAXES

* Government budget deficit increased. Deficit more than doubles – The shortfall hit P39.249 billion last month, more than the P34.482 billion incurred in January to June and raising the tally for the year so far to P73.731 billion.

* Government spending increased. – Public spending for the January-July period rose to P957.961 billion, up 15.1% from last year. Note – Subsidies for state companies surge to P2.8 billion in April – on top of the CCT Subsidy.

* Government debt increased. – NATIONAL government debt hit P5.101 trillion as of June, up 6.04% from the P4.81 trillion last year, data from the Bureau of Treasury showed.

* Sin Taxes to Increase.

* Fiscal incentives to be removed.

SMALLER MACRO ECONOMY

* 96% Drop in FDI
* Rise in inflation to 3.2% in July
* Merchandise export growth seen to have slowed in May
* Service exports found low despite strong BPO sector

BIGGER HARDSHIP IN PERSONAL ECONOMY

* Commodity prices to increase due to drop in supply and inflation.
* Utility charges to increase.
* Fuel prices to increase.
* Taxes to increase.
* Unemployment remains high (6% – DOLE / 26.6% SWS)
* Underemployment remains high (19%)
* Poverty still remains high and it is reflected in the growing number of unemployed and underemployed Filipinos

Aquino, Balicasan, and Purisma believe that they can tax and spend the Philippines into prosperity. The outcomes of poverty, hunger, and joblessness do not support the Comm Group’s hype. The increase in Sin Taxes and the removal of fiscal incentives will further aggravate the cash position of many Filipinos – particularly the poor who partake of the cigarettes and liquor.

It just so mind boggling how many fall for the government yarn that government can help you prosper by taking your money away. Fortunately for the Aquino govermnent there’s a lot of distraction and red herrings that the ignorant and mendicant Filipinos will swallow without batting an eyelash.

The Filipinos however will have to bear the burden of increased government spending – and will have to literally take away the money they have budgetted for food – and hand it over to government tax collectors so that the monies can be awarded to Aquino’s cronies in time for the Forbes 40 Richest Men in the Philippines.

I am just wondering how exactly the Philippines will be one helluva competitive economy in 2050 when it can’t even get its act together today. Filipinos and Aquino’s economic managers expect new results from doing the same old thing. Hay naku, so much the bullshit talaga oo.

Ignorance is bliss – poverty and hunger ain’t.


About the Author

BongV

has written 421 stories on this site.


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