Our Credit On The Latest Economical Move Of The Government

I heard that the Arroyo administration expects at least P 124.7 B in incremental revenues from tax measures and other tariff adjustments this year. This means that this will give an additional of P 161.3 B to our revenue. And for me, it will help in our budget to be used by department of the administration. We need a tight budget and development on our economic problems.

Another P 5 B will be added to the year budget from lifting of the tariff from oil and lateral attrition law. The country’s revenues amount 4.7% of GDP compared to 6.7% of Thailand and 7.1% of Vietnam. The proportion is higher than Indonesia w/c collects about 4.1% of GDP.

It was further announced by President Gloria Macapagal – Arroyo that the fiscal crisis was already finished and w can anticipate a competitive economy. This year, 2005, we have been all witness to the great fight of peso against dollar. The last exchange rate that I heard was P55.68= $1. A reason for this, I must say was the dollar remittances that our brothers abroad (OFW) are sending to their family here in the Philippines. It really helps a lot to make some small relief to economic problems. It is not hidden to us that an additional 2% on tax will be implemented sometimes this year, and a high equivalent of peso comparing to other monetary units will limit the inflation of goods and other staple things on the market. Others are already contented, because finally they can buy imported things. But the families of the OFW are sad, because the equivalent of their dollars in hands turn into an amount of dollars 2 years hence. (The latest peso – dollar exchange rate is the highest since October, 2003). I am really pretty sure that the peso will have more competitive if the people will not hide their dollars, and will not wait until the peso deflates again. I must say that they will just blame their selves if the peso continues to follow the strength of dollar.

I am just thinking a situation on which our economy can really be more competitive. And that is by investing. We all know that many of the investors in the country are foreigners. They are helping on our economy, but the truth is that they are earning because of the Filipino. Our countrymen really work for them. And if the OFW, after returning to their motherland will invest on their own money, he/she with the Filipino can gain money for their own. Widely speaking, Filipino will earn money in their own land. And years after, they do not need to work abroad and be slaves. A lot of people in the whole world think that Filipino are really good and dedicated on their work. An example is in Bangladesh, on which only few are rich and educated. Filipino are being respected because they are the one who run the economy of the Bangladeshis. They are really professionals but are decided to work not for their own country because of the low payment. The government must think, as it is still early, on how they can give jobs for everybody, especially to all graduates. Graduated nurses are going to the United States, Canada and Taiwan because of the dollars they earn, but look on our hospitals, and you can just count the good nurses in hands. We are exporting the expert doctors and nurses, and the remaining were the second-rated.

The different figures showing Philippine economy strength is not just the basis to say that we are free from poverty. Every student must be educated. The latest survey states that out of 45 countries, the Philippines is one of the least, as 43rd on examinations in terms of education. Only 5% of hundred thousand students pass the Preliminary Tests for High schools. And less and less can speak English. On the squatter areas, you can see the people starving on food. Only one of the 10 on the family has job and in just in part-time. So, how can you say that our economy is fighting? I am in favor of imposing that 2% additional tax on goods, so that a little bit will be added to our revenue. But that is unfair, because there is still an exemption. I have read that the BIG 3 (Shell, Caltex, Petron) are exempted to pay the tax, because they cannot control the inflation of prices in the World Market. They just always say that they are “lugi” and do only small profit on their business. I do not believe on them. How many cars and buses do we have in the Philippines? The government should not exempt these shrewd companies who just think for their own sake.

I must congratulate the Arroyo administration for imposing the tax on cigarettes & on liquors (including the beer and gin) because that gives only “bisyo” to our fathers and kuyas. And instead of treating their money on such nonsense things, why not buy foods for their families. I have also watched on the news that they will again impose another tax, and the latest who will be affected are the texters. It is being reviewed by Senator Dick Gordon and want to use the earning revenue to tighten the education sector. For me, it’s just fine. You think, that for our every text, we can help to a young student and ensure his education. But I must also add, that a higher tax must be implemented to those who uses the MMS cell phones who do nothing but to pass pictures and videos. Only rich people can do that. Am I right? You know, they just pass unwanted pictures of actors and actresses that are naked. And videos who are showing somebody who is in the intercourse of sex. If tax will be imposed, pornography on hand phones will be limited.