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    Balancing the budget without racing taxes

     

    The budget plan to reduce the deficit by 50 percent, from P125 billion last year to P63 billion in 2007, will certainly be a tough act to follow considering the propensity of the government to overspend.

    The President, nonetheless, is confident the Philippines will survive the 50-percent budgetary deficit. “Every item in the budget is designed to push good governance to the limit, strengthen confidence and enterprise, drive up investments and jobs, deliver social dividends and fight terror and crime.”

    However, every item proposed by Congress has a corresponding cost, social and political, such as the dirty pork barrel sanitized to mean nothing but a congressional allocation.

    Then, there is the line department that eats up a good portion of the budget, such as gasoline allowance, transportation allowance, car repair, per diem for meetings and out-of-town expenses, overtime pay, and so forth and so on.

    There are also the fiscal reforms that, instead of reforming the fiscals, make the Philippines an easy qualifier for the who’s who in the world of graft and corruption, neatly called good governance.

    Last year, President Arroyo in her most recent State of the Nation Address announced the Philippines had earned P1 billion from the US Million Challenge Account and a counterpart funding from the government’s fiscal savings.

    The proceeds were to employ more investigators and prosecutors (they used to be called fiscals but the term was scrapped in favor of the most polite term of prosecutors), buy or procure (without its negative connotation) new technology to fight corruption.

    All this is meant to save so that the government could have a more balanced budget and eradicate the corruptors and the corrupt.

    The biggest allocation will go to the Department of Education, and the Department of Public Works and Highways. I was almost tempted to say Department of Mal-education and Department of no Work and Highway Robbery until I realized you cannot say that anymore of the DepEd under Education Secretary Jing Lapus. 

    You really can’t blame me and those who shared the same sentiment; the DepEd and the DPWH were two of the most corrupt agencies in the government in terms of public perception sometime ago.

    Of the ratified budget bill of P1.13 trillion, P10 billion is for assistance and rehabilitation of provinces hit by the typhoons last year. Of that amount, P8 billion is to be coursed through the departments of agriculture, agrarian reform, energy, and public works and highways. The rest will go to the DepEd.

    The easiest way to solve or ease the budget deficit is usually to impose more taxes on people already paying taxes and not those who evade and avoid taxes. That is the reason why we have the comprehensive tax reform program (CTRP) that makes the consumption of cigarettes and liquors prohibitive and the value-added tax.

    The two measures are also the quickest way for the corrupt government official to go into a spending spree as if there’s no future generation who will suffer from their sins.

    These words are not exactly mine but those of another president. He said that, above anything else, the government must balance its budget and “we can do that without raising taxes.”

    Said President George W. Bush in his State of the Union Address late last month, “What we need to do is to impose spending discipline in Washington D.C.”

    In his speech, Bush boasted that the federal government did that three years in advance. “We set a goal of cutting the deficit in half by 2009 and met the goal three years ahead of schedule.”

    Bush further declared: “Together, we can restrain the spending appetite of the federal government and we can balance the budget.”

    E-mail: raulbvalino@yahoo.com.ph.

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