Happy New Year folks!
Sorry, if I am to welcome your New Year with this kind of post. Expect I am going to post a more lighter one about the New Year in the coming days.
It is like a toy balloon swelling up as more air is being pumped into it with sooner or later, it will explode as it cannot hold more air.
This is sad news for Filipinos this yuletide season and the year 2010. But knowing the Filipinos’ strength of spirit and love of ironies of life, this serious economic problem will not easily weaken us though may force us into quick anger. This is a problem that taxpayers’ may once again be forced to shoulder in lieu of the welfare of the nation while thieves are still unrepentant for their excesses.
The Philippines’ 11-month budget deficit drastically ballooned up to P272.5 billion and is projected to hit P300 billion at the end of the year. To simply put it, the government has spent P272.5 billion without even earning it yet. This is a mother’s nightmare when doing the budgeting at home. This serious financial problem is attributed by the Finance Department to the economic slowdown, thus lower revenue for the government courtesy of its collecting bodies, the Bureau of Internal Revenue (BIR) and Bureau of Customs; and the impact of the recent typhoons that destroyed properties and crops amounting to more than P10 billion.
There are a few reasons why we have this mind-boggling P272.5 billion budget deficit.
- The rampant illegal smuggling of all kinds of goods into Philippine shore ranging from genetically-modified vegetables, car accessories and second-hand underwear is still thriving. Smuggling either in collusion with the Customs officials or not, certainly kills the country and ill its surviving industries much more robbing the national coffer.
- The devastating typhoons and economic slowdown are given conditions.
- Corruption is still the king, one of the biggest problems in the government like a black hole sucking all resources, digging up mass graves for its citizens. It has been known that government projects are usually overpriced with commissions and kickbacks up to almost 40% more than its actual cost. Nowhere in the report though that the Department of Finance has attributed to corruption as one more serious reason why we have to incur such a big amount of budget deficit. Billions of pesos are going to corruption; into a few pockets. And they do not have the balls to actually admit it.
- Election time is getting near and it may be thought of that those who are presently occupying government positions who are eyeing for a re-run or higher office have used or may still use government money into their campaign. Millions if not billions of public funds wasted.
In effect, this budget deficit is no heaven for the public, more so tax-payers and businesses.
- In order to augment government spending, the government itself will have to barrow more money to international lending institutions, issue treasury bills or beg for foreign aid, swelling up our national debt which by the way has to be repaid even by future generations.
- Selling of government-owned corporations (GOCs), private properties ad shares of stocks are some of the easiest ways to pump in money into the government without earning the anger of the public. Examples of this are the scheduled selling of the government stake at PNOC-EDC, the Jusmag Property in Taguig and the Tokyo Property. These are midnight baratillo sale of the government desperate for additional funds.
- How about having negotiations with the Marcoses regarding the Marcos properties as a band-aid solution?
- And if nothing happens, taxing is key. Hiking taxes on liquor and cigarette and other products are some solutions on this area. Unfortunately, another form of value-added-tax which could already be called this time around as over-expanded-value-added-tax (OE-VAT) could easily be thought of lawmakers.
As to the issue of public funds (how to budget it, how to get it, and how to spend it), the public which by the way is the main source of this money being stolen by thieves in government uniforms, only has a tiny voice, if not no voice at all.
This is the legacy that President Arroyo is to leave to the public and expect it to even swell up as election is getting nearer and nearer.
Image from San Francisco Sentinel
My god, that’s insane! Ang Pilipinas kong Mahal
anyabelle´s last blog ..5 important lessons I learned in 2009
Yes Anya, so insane. And since time immemorial, it has been the public that always have to shoulder all these insanities; that try to inject some saving grace to all the insanity in public governance.
elmot´s last blog ..Job Opportunities in Dubai for Filipinos
I think corruption is not yet the king, though it’s the most obvious one, you forgot to include the massive foreign debt service that has been siphoning off billions from our national coffers for decades!
Jhay´s last blog ..New Year wish: Improved Globe Broadband services
Happy New Year Bro!
Oh, yeah, I have totally forgotten to include that one. And it will be just like a cycle: debt servicing – budget deficit – more debts.
elmot´s last blog ..Charice Pempengco Outstanding Performace at the Singapore Idol 2009 – Watch Video
From big bang to inexorable march to a black hole. Sad state of affairs.
jan geronimo´s last blog ..Happy New Year, Guys
Any signs of hope? Well, the big bang ushered in the creation of new planets and the earth…but this big bang is indeed leading us to a black hole siphoning every cent that we still have on our pockets.
elmot´s last blog ..“Avatar†Shoots above $1 Billion
Grabe naman! Kaya maraming walang tiwala na sa gobyerno. Umaalis na lang ng bansa ang mga tao!
Gem´s last blog ..The Lady Programmer’s Most Interesting and Informative Posts of 2009
Hi Gem! Happy New Year!
Certainly, one cannot trust an institution that punishes it people with more debt.
The greatest legacy GMA and her cohorts is going to leave us.
elmot´s last blog ..Trial of the Crusader – Northend Beast Strategy
Hi Elmot! Happy New Year!
Dee´s last blog ..Guidelines on Regifting
Happy New Year too Dee! Send my greetings to Luke
elmot´s last blog ..See-Through Goldfish Picture
It’s really a snowball effect. You just have to wonder if what the hell happened to the billions of taxes that the citizen’s pay. I am really curious if all those who are robbing our poor country even feel a little guilt? Is there really no end to their greed. With all the issues bombarding us everyday, its easy to overlook this one. But this is a very serious matter, not only to the current generation but the future ones as well..That is why, each one of us must do our part, easier said than done but we don’t have much choice. Well, I guess an immediate solution for this one is getting closer each day. Come election time, I hope that we will all choose the right candidate….
Easier said than done indeed. And we are always hoping that the elections will ultimately bring us the real “change” and new governance that we all need. fingers crossed LOL
elmot´s last blog ..Hanes Pulled Off Its Ads Featuring Charlie Sheen
Well, Elmot, I beg to disagree on this one:
40% is minimum, I don’t even believe its this low these days. Once there was a project which costed 50M USD, after adding some commissions to certain people, it was submitted for discussion at 70M USD, which by the way was rejected by the proponents because certain So and So needed to be pleased.
The proponents’ suggestion? Re-submit proposal with the revised amount = 70M USD x 3…
bloggista´s last blog ..Your Dose of Creative Writing – Doc Z of Zorlone.Com
Now you are taling, eheheh!
Damn! x3 on government project?! Thats too much Bro! Experienced that with your dealings in the government, LOL!
Now, you are really giving me more serious reasons to campaign for you to be in the Senate…
Roel for Senator! LOL!
elmot´s last blog ..Gilbert Arenas, Suspended Indefinitely after Alleged Possession of Firearm