What yardstick are we using to measure P-Noy’s performance?
The arbitrary, rule of thumb of the first year in office is about to come and go for this administration. The obligatory journalistic pieces assessing the president’s performance have consulted the usual suspects.
Political analysts, polling firms and pundits, the business community and the average man on the street express varying degrees of satisfaction, from impatience on the part of Conrad de Quiros for instance, to a more sanguine position on the part of Mon Casiple. Regardless of their positions, they are essentially in agreement that while one year is too brief a period to expect major change, some demonstrably concrete level of progress or achievement is lacking in the president’s first 365 days in office.
As expected the president’s men were engaged in a charm offensive to address these complaints with Undersecretary Manolo Quezon of the Communications Group appearing on ANC, Deputy Spokesperson Abigail Valte on Twitter, and Budget Secretary Butch Abad polemically addressing the issue of economic management. The to-ing and fro-ing has been at times entertaining as in the case of the Valte-Magsaysay twitterverse exchanges and insightful as in the case of Quezon’s revelations about the president’s love life.
The advocates of the president (both in and out of government) say that much has been accomplished. The emphasis on government frugality and public spending restraint has created domestic private investor confidence and a credit ratings dividend according to Cielito Habito. Plugging the leaks in infrastructure spending has generated fiscal space to expand social spending by the end of the year according to Abad. Public private partnerships are “on track” to be consummated this year according to Finance officials.
That in essence is the shortlist of accomplishments brandished by Malacanang. Judging by his poll numbers, the public seems to give P-Noy the nod of approval with 64% expressing satisfaction with his performance.
Is that it, then? Should we give the president a pass too?
Unfortunately, what is missing is a solid discussion over, well…what sort of yardstick is appropriate for measuring the president’s performance. For instance,
• Shall we judge him on what he said he will do?
Based on the president’s anti-Gloria campaign theme, De Quiros now questions why the former president and her ilk have not been brought before any court to answer for her alleged transgressions. Based on his anti-corruption platform, the Management Association of the Philippines now asks why there have been no measures like the Freedom of Information bill or any meaningful reductions in business redtape progressed.
Civil rights advocates wonder what has happened to Jonas Burgos and many other like him. Women’s groups are still waiting for the RH Bill to be passed. Farmers are wondering what happened to the resolution of Hacienda Luisita. The ordinary man on the street wonders where the jobs are and the relief from the rising cost of living. These were issues PNoy promised to resolve once in office.
• On the other hand, should we judge him based on his ability to prudently modify or alter what he said he would do?
The problem for the president of course is, whether you adhere to the strict contractual sense or not, he has failed to register meaningful progress on many fronts. So the question then becomes, how much time should we give him before we start downgrading his performance assessment? How long before we start saying that the president has either reneged or foolishly forged ahead down a dead end path?
Should we give him another six months? A full year? Two years? It’s like asking the question, how long is a piece of string?
After all, for the marginalized groups awaiting resolution to decade’s old injustices, their well-being has been put on hold for far too long. The well-healed chattering classes may feel aggrieved that bringing justice to Arroyo has been delayed, but their grief is nothing compared to what farmers and human rights abuse victims have suffered.
Similarly for those denied access to education, healthcare, sanitation and protection from the elements, the experiment to improve tax collection without a root and branch reform process would prove to be the most costly of all, if it fails. Is it therefore worth the gamble?
Perhaps, it is in addressing the needs of the least of our brethren that the president ought to be judged. In his “Back to the Future” moment, the president like his mother in the mid-1980s seemed to have prioritized the needs of rich creditors and bondholders over that of poor and marginalized stakeholders. Private investments have improved the skyline, but public investment failed to raise more out of the poverty line.
How long is a piece of string? Well we will have to wait and see…
MANILA, Philippines—The government should not raise the value-added tax to 15 percent as this, along with the corporate income tax being lowered further, would make the Philippine tax system more regressive, according to the Asian Development Bank.
In a policy note on the Philippines, the multilateral lender said the Philippines should rather raise excise taxes on tobacco, alcohol and gasoline to improve its tax effort or collections expressed as a percentage of total output (gross domestic product).
The ADB noted a standing proposal for another increase in the VAT from the current 12 percent and a further lowering of the corporate income tax to 25 percent from 30 percent would not improve the tax effort, which was pegged at 12.8 percent in 2009.
“The overall impact [of this scenario] on the tax effort is neutral,” the ADB said. “But if the [corporate income tax] is cut further to 20 percent, the tax effort decreases by -0.6 percentage point.”
Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay; Chief Justice Renato Corona; Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; members of the House of Representatives and the Senate; distinguished members of the diplomatic corps; my fellow workers in government;
Mga minamahal kong kababayan:
Sa bawat sandali po ng pamamahala ay nahaharap tayo sa isang sangandaan.
Sa isang banda po ay ang pagpili para sa ikabubuti ng taumbayan. Ang pagtanaw sa interes ng nakakarami; ang pagkapit sa prinsipyo; at ang pagiging tapat sa sinumpaan nating tungkulin bilang lingkod-bayan. Ito po ang tuwid na daan.
Sa kabilang banda ay ang pag-una sa pansariling interes. Ang pagpapaalipin sa pulitikal na konsiderasyon, at pagsasakripisyo ng kapakanan ng taumbayan. Ito po ang baluktot na daan.
Matagal pong naligaw ang pamahalaan sa daang baluktot. Araw-araw po, lalong lumilinaw sa akin ang lawak ng problemang ating namana. Damang-dama ko ang bigat ng aking responsibilidad.
Sa unang tatlong linggo ng aming panunungkulan, marami po kaming natuklasan. Nais ko pong ipahayag sa inyo ang iilan lamang sa mga namana nating suliranin at ang ginagawa naming hakbang para lutasin ang mga ito.
Sulyap lamang po ito; hindi pa ito ang lahat ng problemang haharapin natin. Inilihim at sadyang iniligaw ang sambayanan sa totoong kalagayan ng ating bansa.
PROBLEMA SA BUDGET
Sa unang anim na buwan ng taon, mas malaki ang ginastos ng gobyerno kaysa sa pumasok na kita. Lalong lumaki ang deficit natin, na umakyat na sa 196.7 billion pesos. Sa target na kuleksyon, kinapos tayo ng 23.8 billion pesos; ang tinataya namang gastos, nalagpasan natin ng 45.1 billion pesos.
Ang budget po sa 2010 ay 1.54 trillion pesos.
Nasa isandaang bilyong piso o anim at kalahating porsyento na lang ng kabuuan ang malaya nating magagamit para sa nalalabing anim na buwan ng taong ito.
Halos isang porsyento na lang po ng kabuuang budget ang natitira para sa bawat buwan.
Saan naman po dinala ang pera?
Naglaan ng dalawang bilyong piso na Calamity Fund bilang paghahanda para sa mga kalamidad na hindi pa nangyayari. Napakaliit na nga po ng pondong ito, ngunit kapapasok pa lang natin sa panahon ng baha at bagyo, 1.4 billion pesos o sitenta porsyento na ang nagastos.
Sa kabuuan ng 108 million pesos para sa lalawigan ng Pampanga, 105 million pesos nito ay napunta sa iisang distrito lamang. Samantala, ang lalawigan ng Pangasinan na sinalanta ng Pepeng ay nakatanggap ng limang milyong piso lamang para sa pinsalang idinulot ng bagyong Cosme, na nangyari noong 2008 pa.
Ibinigay po ang pondo ng Pampanga sa buwan ng eleksyon, pitong buwan pagkatapos ng Ondoy at Pepeng. Paano kung bumagyo bukas? Inubos na ang pondo nito para sa bagyong nangyari noong isang taon pa. Pagbabayaran ng kinabukasan ang kasakiman ng nakaraan.
Ganyan din po ang nangyari sa pondo ng MWSS. Kamakailan lamang, pumipila ang mga tao para lang makakuha ng tubig. Sa kabila nito, minabuti pa ng liderato ng MWSS na magbigay ng gantimpala sa sarili kahit hindi pa nababayaran ang pensyon ng mga retiradong empleyado.
Noong 2009, ang buong payroll ng MWSS ay 51.4 million pesos. Pero hindi lang naman po ito ang sahod nila; may mga additional allowances at benefits pa sila na aabot sa 160.1 million pesos. Sa madaling sabi, nakatanggap sila ng 211.5 million pesos noong nakaraang taon. Beinte-kuwatro porsyento lang nito ang normal na sahod, at sitenta’y sais porsyento ang dagdag.
Ang karaniwang manggagawa hanggang 13th month pay plus cash gift lang ang nakukuha. Sa MWSS, aabot sa katumbas ng mahigit sa tatlumpung buwan ang sahod kasama na ang lahat ng mga bonuses at allowances na nakuha nila.
Mas matindi po ang natuklasan natin sa pasahod ng kanilang Board of Trustees. Tingnan po natin ang mga allowances na tinatanggap nila:
Umupo ka lang sa Board of Trustees at Board Committee meeting, katorse mil na. Aabot ng nobenta’y otso mil ito kada buwan. May grocery incentive pa sila na otsenta mil kada taon.
Hindi lang iyon: may mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, at Financial Assistance. May Christmas bonus na, may Additional Christmas Package pa. Kada isa sa mga ito, nobenta’y otso mil.
Sa suma total po, aabot ang lahat ng dalawa’t kalahating milyong piso kada taon sa bawat miyembro ng Board maliban sa pakotse, technical assistance, at pautang. Uulitin ko po. Lahat ng ito ay ibinibigay nila sa kanilang mga sarili habang hindi pa nababayaran ang mga pensyon ng kanilang mga retirees.
Pati po ang La Mesa Watershed ay hindi nila pinatawad. Para magkaroon ng tamang supply ng tubig, kailangang alagaan ang mga watershed. Sa watershed, puno ang kailangan. Pati po iyon na dapat puno ang nakatayo, tinayuan nila ng bahay para sa matataas na opisyal ng MWSS.
Hindi naman sila agad maaalis sa puwesto dahil kabilang sila sa mga Midnight Appointees ni dating Pangulong Arroyo. Iniimbestigahan na natin ang lahat nang ito. Kung mayroon pa silang kahit kaunting hiya na natitira – sana kusa na lang silang magbitiw sa puwesto.
ROAD USERS’ FUND
Pag-usapan naman po natin ang pondo para sa imprastruktura. Tumukoy ang DPWH ng dalawandaan apatnapu’t anim na priority safety projects na popondohan ng Motor Vehicle Users Charge. Mangangailangan po ito ng budget na 425 million pesos.
Ang pinondohan po, dalawampu’t walong proyekto lang. Kinalimutan po ang dalawandaan at labing walong proyekto at pinalitan ng pitumpung proyekto na wala naman sa plano. Ang hininging 425 million pesos, naging 480 million pesos pa, lumaki lalo dahil sa mga proyektong sa piling-piling mga benepisyaryo lang napunta.
Mga proyekto po itong walang saysay, hindi pinag-aralan at hindi pinaghandaan, kaya parang kabuteng sumusulpot.
Tapos na po ang panahon para dito. Sa administrasyon po natin, walang kota-kota, walang tongpats, ang pera ng taumbayan ay gagastusin para sa taumbayan lamang.
Meron pa po tayong natuklasan. Limang araw bago matapos ang termino ng nakaraang administrasyon, nagpautos silang maglabas ng 3.5 billion pesos para sa rehabilitasyon ng mga nasalanta nina Ondoy at Pepeng.
Walumpu’t anim na proyekto ang paglalaanan dapat nito na hindi na sana idadaan sa public bidding. Labingsiyam sa mga ito na nagkakahalaga ng 981 million pesos ang muntik nang makalusot. Hindi pa nailalabas ang Special Allotment Release Order ay pirmado na ang mga kontrata.
Buti na lang po ay natuklasan at pinigilan ito ni Secretary Rogelio Singson ng DPWH. Ngayon po ay dadaan na ang kabuuan ng 3.5 billion pesos sa tapat na bidding, at magagamit na ang pondo na ito sa pagbibigay ng lingap sa mga nawalan ng tahanan dahil kina Ondoy at Pepeng.
Pag-usapan naman natin ang nangyari sa NAPOCOR. Noong 2001 hanggang 2004, pinilit ng gobyerno ang NAPOCOR na magbenta ng kuryente nang palugi para hindi tumaas ang presyo. Tila ang dahilan: pinaghahandaan na nila ang eleksyon.
Dahil dito, noong 2004, sumagad ang pagkakabaon sa utang ng NAPOCOR. Napilitan ang pambansang gobyerno na sagutin ang dalawandaang bilyong pisong utang nito.
Ang inakala ng taumbayan na natipid nila sa kuryente ay binabayaran din natin mula sa kaban ng bayan. May gastos na tayo sa kuryente, binabayaran pa natin ang dagdag na pagkakautang ng gobyerno.
Kung naging matino ang pag-utang, sana’y nadagdagan ang ating kasiguruhan sa supply ng kuryente. Pero ang desisyon ay ibinatay sa maling pulitika, at hindi sa pangangailangan ng taumbayan. Ang taumbayan, matapos pinagsakripisyo ay lalo pang pinahirapan.
Ganito rin po ang nangyari sa MRT. Sinubukan na namang bilhin ang ating pagmamahal. Pinilit ang operator na panatilihing mababa ang pamasahe.
Hindi tuloy nagampanan ang garantiyang ibinigay sa operator na mababawi nila ang kanilang puhunan. Dahil dito, inutusan ang Landbank at Development Bank of the Philippines na bilhin ang MRT.
Ang pera ng taumbayan, ipinagpalit sa isang naluluging operasyon.
Dumako naman po tayo sa pondo ng NFA.
Noong 2004: 117,000 metric tons ang pagkukulang ng supply ng Pilipinas. Ang binili nila, 900,000 metric tons. Kahit ulitin mo pa ng mahigit pitong beses ang pagkukulang, sobra pa rin ang binili nila.
Noong 2007: 589,000 metric tons ang pagkukulang ng supply sa Pilipinas. Ang binili nila, 1.827 million metric tons. Kahit ulitin mo pa ng mahigit tatlong beses ang pagkukulang, sobra na naman ang binili nila.
Ang masakit nito, dahil sobra-sobra ang binibili nila taun-taon, nabubulok lang pala sa mga kamalig ang bigas, kagaya ng nangyari noong 2008.
Hindi po ba krimen ito, na hinahayaan nilang mabulok ang bigas, sa kabila ng apat na milyong Pilipinong hindi kumakain ng tatlong beses sa isang araw?
Ang resulta nito, umabot na sa 171.6 billion pesos ang utang ng NFA noong Mayo ng taong ito.
Ang tinapon na ito, halos puwede na sanang pondohan ang mga sumusunod:
Ang budget ng buong Hudikatura, na 12.7 billion pesos sa taong ito.
Ang Conditional Cash Transfers para sa susunod na taon, na nagkakahalaga ng 29.6 billion pesos.
Ang lahat ng classroom na kailangan ng ating bansa, na nagkakahalaga ng 130 billion pesos.
Kasuklam-suklam ang kalakarang ito. Pera na, naging bato pa.
Narinig po ninyo kung paano nilustay ang kaban ng bayan. Ang malinaw po sa ngayon: ang anumang pagbabago ay magmumula sa pagsiguro natin na magwawakas na ang pagiging maluho at pagwawaldas.
Kaya nga po mula ngayon: ititigil na natin ang paglulustay sa salapi ng bayan. Tatanggalin natin ang mga proyektong mali.
Ito po ang punto ng tinatawag nating zero-based approach sa ating budget. Ang naging kalakaran po, taun-taon ay inuulit lamang ang budget na puno ng tagas. Dadagdagan lang nang konti, puwede na.
Sa susunod na buwan ay maghahain tayo ng budget na kumikilala nang tama sa mga problema, at magtutuon din ng pansin sa tamang solusyon.
Ilan lang ito sa mga natuklasan nating problema. Heto naman po ang ilang halimbawa ng mga hakbang na ginagawa natin.
Nandiyan po ang kaso ng isang may-ari ng sanglaan. Bumili siya ng sasakyang tinatayang nasa dalawampu’t anim na milyong piso ang halaga.
Kung kaya mong bumili ng Lamborghini, bakit hindi mo kayang magbayad ng buwis?
Nasampahan na po ito ng kaso. Sa pangunguna nina Finance Secretary Cesar Purisima, Justice Secretary Leila de Lima, BIR Commissioner Kim Henares at Customs Commissioner Lito Alvarez, bawat linggo po ay may bago tayong kasong isinasampa kontra sa mga smuggler at sa mga hindi nagbabayad ng tamang buwis.
Natukoy na rin po ang salarin sa mga kaso nina Francisco Baldomero, Jose Daguio at Miguel Belen, tatlo sa anim na insidente ng extralegal killings mula nang umupo tayo.
Singkuwenta porsyento po ng mga insidente ng extralegal killings ang patungo na sa kanilang resolusyon.
Ang natitira pong kalahati ay hindi natin tatantanan ang pag-usig hanggang makamit ang katarungan.
Pananagutin natin ang mga mamamatay-tao. Pananagutin din natin ang mga corrupt sa gobyerno.
Nagsimula nang mabuo ang ating Truth Commission, sa pangunguna ni dating Chief Justice Hilario Davide. Hahanapin natin ang katotohanan sa mga nangyari diumanong katiwalian noong nakaraang siyam na taon.
Sa loob ng linggong ito, pipirmahan ko ang kauna-unahang Executive Order na nagtatalaga sa pagbuo nitong Truth Commission.
Kung ang sagot sa kawalan ng katarungan ay pananagutan, ang sagot naman sa kakulangan natin sa pondo ay mga makabago at malikhaing paraan para tugunan ang mga pagkatagal-tagal nang problema.
Napakarami po ng ating pangangailangan: mula sa edukasyon, imprastruktura, pangkalusugan, pangangailangan ng militar at kapulisan, at marami pang iba. Hindi kakasya ang pondo para mapunan ang lahat ng ito.
Kahit gaano po kalaki ang kakulangan para mapunan ang mga listahan ng ating pangangailangan, ganado pa rin ako dahil marami nang nagpakita ng panibagong interes at kumpyansa sa Pilipinas.
Ito ang magiging solusyon: mga Public-Private Partnerships. Kahit wala pa pong pirmahang nangyayari dito, masasabi kong maganda ang magiging bunga ng maraming usapin ukol dito.
May mga nagpakita na po ng interes, gustong magtayo ng expressway na mula Maynila, tatahak ng Bulacan, Nueva Ecija, Nueva Vizcaya, hanggang sa dulo ng Cagayan Valley nang hindi gugugol ang estado kahit na po piso.
Sa larangan ng ating Sandatahang Lakas:
Mayroon po tayong 36,000 nautical miles ng baybayin. Ang mayroon lamang tayo: tatlumpu’t dalawang barko. Itong mga barkong ito, panahon pa ni MacArthur.
May nagmungkahi sa atin, ito ang proposisyon: uupahan po nila ang headquarters ng Navy sa Roxas Boulevard at ang Naval Station sa Fort Bonifacio.
Sagot po nila ang paglipat ng Navy Headquarters sa Camp Aguinaldo. Agaran, bibigyan tayo ng isandaang milyong dolyar. At dagdag pa sa lahat nang iyan, magsusubi pa sila sa atin ng kita mula sa mga negosyong itatayo nila sa uupahan nilang lupa.
Sa madali pong sabi: Makukuha natin ang kailangan natin, hindi tatayo gagastos, kikita pa tayo.
Marami na pong nag-alok at nagmungkahi sa atin, mula lokal hanggang dayuhang negosyante, na magpuno ng iba’t ibang pangangailangan.
Mula sa mga public-private partnerships na ito, lalago ang ating ekonomiya, at bawat Pilipino makikinabang. Napakaraming sektor na matutulungan nito.
Maipapatayo na po ang imprastrukturang kailangan natin para palaguin ang turismo.
Sa agrikultura, makapagtatayo na tayo ng mga grains terminals, refrigeration facilities, maayos na road networks at post-harvest facilities.
Kung maisasaayos natin ang ating food supply chain sa tulong ng pribadong sektor, sa halip na mag-angkat tayo ay maari na sana tayong mangarap na mag-supply sa pandaigdigang merkado.
Kung maitatayo ang minumungkahi sa ating railway system, bababa ang presyo ng bilihin. Mas mura, mas mabilis, mas maginhawa, at makakaiwas pa sa kotong cops at mga kumokotong na rebelde ang mga bumibiyahe.
Paalala lang po: una sa ating plataporma ang paglikha ng mga trabaho, at nanggagaling ang trabaho sa paglago ng industriya. Lalago lamang ang industriya kung gagawin nating mas malinis, mas mabilis, at mas maginhawa ang proseso para sa mga gustong magnegosyo.
Pabibilisin natin ang proseso ng mga proyektong sumasailalim sa Build-Operate-Transfer. Sa tulong ng lahat ng sangay ng gobyerno at ng mga mamamayan, pabababain natin sa anim na buwan ang proseso na noon ay inaabot ng taon kung hindi dekada.
May mga hakbang na rin pong sinisimulan ang DTI, sa pamumuno ni Secretary Gregory Domingo:
Ang walang-katapusang pabalik-balik sa proseso ng pagrehistro ng pangalan ng kumpanya, na kada dalaw ay umaabot ng apat hanggang walong oras, ibababa na natin sa labinlimang minuto.
Ang dating listahan ng tatlumpu’t anim na dokumento, ibababa natin sa anim. Ang dating walong pahinang application form, ibababa natin sa isang pahina.
Nananawagan ako sa ating mga LGUs. Habang naghahanap tayo ng paraan para gawing mas mabilis ang pagbubukas ng mga negosyo, pag-aralan din sana nila ang kanilang mga proseso. Kailangan itong gawing mas mabilis, at kailangan itong itugma sa mga sinisumulan nating reporma.
Negosyante, sundalo, rebelde, at karaniwang Pilipino, lahat po makikinabang dito. Basta po hindi dehado ang Pilipino, papasukin po natin lahat iyan. Kailangan na po nating simulan ang pagtutulungan para makamit ito. Huwag nating pahirapan ang isa’t isa.
Parating na po ang panahon na hindi na natin kailangang mamili sa pagitan ng seguridad ng ating mamamayan o sa kinabukasan ng inyong mga anak.
FREEING UP FUNDS
Oras na maipatupad ang public-private partnerships na ito, mapopondohan ang mga serbisyong panlipunan, alinsunod sa ating plataporma.
Magkakapondo na po para maipatupad ang mga plano natin sa edukasyon.
Mapapalawak natin ang basic education cycle mula sa napakaikling sampung taon tungo sa global standard na labindalawang taon.
Madadagdagan natin ang mga classroom. Mapopondohan natin ang service contracting sa ilalim ng GASTPE.
Pati ang conditional cash transfers, na magbabawas ng pabigat sa bulsa ng mga pamilya, madadagdan na rin ng pondo.
Maipapatupad ang plano natin sa PhilHealth.
Una, tutukuyin natin ang tunay na bilang ng mga nangangailangan nito. Sa ngayon, hindi magkakatugma ang datos. Sabi ng PhilHealth sa isang bibig, walumpu’t pitong porsyento na raw ang merong coverage. Sa kabilang bibig naman, singkuwenta’y tres porsyento naman. Ayon naman sa National Statistics Office, tatlumpu’t walong porsyento ang may coverage.
Ngayon pa lang, kumikilos na si Secretary Dinky Soliman at ang DSWD upang ipatupad ang National Household Targetting System, na magtutukoy sa mga pamilyang higit na nagangailangan ng tulong. Tinatayang siyam na bilyon ang kailangan para mabigyan ng PhilHealth ang limang milyong pinakamaralitang pamilyang Pilipino.
Napakaganda po ng hinaharap natin. Kasama na po natin ang pribadong sektor, at kasama na rin natin ang League of Provinces, sa pangunguna nina Governor Alfonso Umali kasama sina Governor L-Ray Villafuerte at Governor Icot Petilla. Handa na pong makipagtulungan para makibahagi sa pagtustos ng mga gastusin. Alam ko rin pong hindi magpapahuli ang League of Cities sa pangunguna ni Mayor Oscar Rodriguez.
Kung ang mga gobyernong lokal ay nakikiramay na sa ating mga adhikain, ang Kongreso namang pinanggalingan ko, siguro naman maasahan ko din.
Nagpakitang-gilas na po ang gabinete sa pagtukoy ng ating mga problema at sa paglulunsad ng mga solusyon sa loob lamang ng tatlong linggo.
Nang bagyo pong Basyang, ang sabi sa atin ng mga may prangkisa sa kuryente, apat na araw na walang kuryente. Dahil sa mabilis na pagkilos ni Secretary Rene Almendras at ng Department of Energy, naibalik ang kuryente sa halos lahat sa loob lamang ng beinte-kwatro oras.
Ito pong sinasabing kakulangan sa tubig sa Metro Manila, kinilusan agad ni Secretary Rogelio Singson at ng DPWH. Hindi na siya naghintay ng utos, kaya nabawasan ang perwisyo.
Nakita na rin natin ang gilas ng mga hinirang nating makatulong sa Gabinete. Makatuwiran naman po sigurong umasa na hindi na sila padadaanin sa butas ng karayom para makumpirma ng Commission on Appointments. Kung mangyayari po ito, marami pa sa mga mahuhusay na Pilipino ang maeengganyong magsilbi sa gobyerno.
Sa lalong madaling panahon po, uupo na tayo sa LEDAC at pag-uusapan ang mga mahahalagang batas na kailangan nating ipasa. Makakaasa kayo na mananatiling bukas ang aking isipan, at ang ating ugnayan ay mananatiling tapat.
Isinusulong po natin ang Fiscal Responsibility Bill, kung saan hindi tayo magpapasa ng batas na mangangailangan ng pondo kung hindi pa natukoy ang panggagalingan nito. May 104.1 billion pesos tayong kailangan para pondohan ang mga batas na naipasa na, ngunit hindi maipatupad.
Kailangan din nating isaayos ang mga insentibong piskal na ibinigay noong nakaraan. Ngayong naghihigpit tayo ng sinturon, kailangang balikan kung alin sa mga ito ang dapat manatili at kung ano ang dapat nang itigil.
Huwag po tayong pumayag na magkaroon ng isa pang NBN-ZTE. Sa lokal man o dayuhan manggagaling ang pondo, dapat dumaan ito sa tamang proseso. Hinihingi ko po ang tulong ninyo upang amiyendahan ang ating Procurement Law.
Ayon po sa Saligang Batas, tungkulin ng estado ang siguruhing walang lamangan sa merkado. Bawal ang monopolya, bawal ang mga cartel na sasakal sa kumpetisyon. Kailangan po natin ng isang Anti-Trust Law na magbibigay-buhay sa mga prinsipyong ito. Ito ang magbibigay ng pagkakataon sa mga Small- at Medium-scale Enterprises na makilahok at tumulong sa paglago ng ating ekonomiya.
Ipasa na po natin ang National Land Use Bill.
Una rin pong naging batas ng Commonwealth ang National Defense Act, na ipinasa noon pang 1935. Kailangan nang palitan ito ng batas na tutugon sa pangangailangan ng pambansang seguridad sa kasalukuyan.
Nakikiusap po akong isulong ang Whistleblower’s Bill upang patuloy nang iwaksi ang kultura ng takot at pananahimik.
Palalakasin pa lalo ang Witness Protection Program. Alalahanin po natin na noong taong 2009 hanggang 2010, may nahatulan sa 95% ng mga kaso kung saan may witness na sumailalim sa programang ito.
Kailangang repasuhin ang ating mga batas. Nanawagan po akong umpisahan na ang rekodipikasyon ng ating mga batas, upang siguruhing magkakatugma sila at hindi salu-salungat.
Ito pong mga batas na ito ang batayan ng kaayusan, ngunit ang pundasyon ng lahat ng ginagawa natin ay ang prinsipyong wala tayong mararating kung walang kapayapaan at katahimikan.
Dalawa ang hinaharap nating suliranin sa usapin ng kapayapaan: ang situwasyon sa Mindanao, at ang patuloy na pag-aaklas ng CPP-NPA-NDF.
Tungkol sa situwasyon sa Mindanao: Hindi po nagbabago ang ating pananaw. Mararating lamang ang kapayapaan at katahimikan kung mag-uusap ang lahat ng apektado: Moro, Lumad, at Kristiyano. Inatasan na natin si Dean Marvic Leonen na mangasiwa sa ginagawa nating pakikipag-usap sa MILF.
Iiwasan natin ang mga pagkakamaling nangyari sa nakaraang administrasyon, kung saan binulaga na lang ang mga mamamayan ng Mindanao. Hindi tayo puwedeng magbulag-bulagan sa mga dudang may kulay ng pulitika ang proseso, at hindi ang kapakanan ng taumbayan ang tanging interes.
Kinikilala natin ang mga hakbang na ginagawa ng MILF sa pamamagitan ng pagdidisplina sa kanilang hanay. Inaasahan natin na muling magsisimula ang negosasyon pagkatapos ng Ramadan.
Tungkol naman po sa CPP-NPA-NDF: handa na ba kayong maglaan ng kongkretong mungkahi, sa halip na pawang batikos lamang?
Kung kapayapaan din ang hangad ninyo, handa po kami sa malawakang tigil-putukan. Mag-usap tayo.
Mahirap magsimula ang usapan habang mayroon pang amoy ng pulbura sa hangin. Nananawagan ako: huwag po natin hayaang masayang ang napakagandang pagkakataong ito upang magtipon sa ilalim ng iisang adhikain.
Kapayapaan at katahimikan po ang pundasyon ng kaunlaran. Habang nagpapatuloy ang barilan, patuloy din ang pagkakagapos natin sa kahirapan.
Dapat din po nating mabatid: ito ay panahon ng sakripisyo. At ang sakripisyong ito ay magiging puhunan para sa ating kinabukasan. Kaakibat ng ating mga karapatan at kalayaan ay ang tungkulin natin sa kapwa at sa bayan.
Inaasahan ko po ang ating mga kaibigan sa media, lalo na sa radyo at sa print, sa mga nagbablock-time, at sa community newspapers, kayo na po mismo ang magbantay sa inyong hanay.
Mabigyang-buhay sana ang mga batayang prinsipyo ng inyong bokasyon: ang magbigay-linaw sa mahahalagang isyu; ang maging patas at makatotohanan, at ang itaas ang antas ng pampublikong diskurso.
Tungkulin po ng bawat Pilipino na tutukan ang mga pinunong tayo rin naman ang nagluklok sa puwesto. Humakbang mula sa pakikialam tungo sa pakikilahok. Dahil ang nakikialam, walang-hanggan ang reklamo. Ang nakikilahok, nakikibahagi sa solusyon.
Napakatagal na pong namamayani ang pananaw na ang susi sa asenso ay ang intindihin ang sarili kaysa intindihin ang kapwa. Malinaw po sa akin: paano tayo aasenso habang nilalamangan ang kapwa?
Ang hindi nabigyan ng pagkakataong mag-aral, paanong makakakuha ng trabaho? Kung walang trabaho, paanong magiging konsumer? Paanong mag-iimpok sa bangko?
Ngunit kung babaliktarin natin ang pananaw—kung iisipin nating “Dadagdagan ko ang kakayahan ng aking kapwa”—magbubunga po ito, at ang lahat ay magkakaroon ng pagkakataon.
Maganda na po ang nasimulan natin. At mas lalong maganda po ang mararating natin. Ngunit huwag nating kalimutan na mayroong mga nagnanasang hindi tayo magtagumpay. Dahil kapag hindi tayo nagtagumpay, makakabalik na naman sila sa kapangyarihan, at sa pagsasamantala sa taumbayan.
Akin pong paniwala na Diyos at taumbayan ang nagdala sa ating kinalalagyan ngayon. Habang nakatutok tayo sa kapakanan ng ating kapwa, bendisyon at patnubay ay tiyak na maaasahan natin sa Poong Maykapal. At kapag nanalig tayo na ang kasangga natin ay ang Diyos, mayroon ba tayong hindi kakayanin?
Ang mandato nating nakuha sa huling eleksyon ay patunay na umaasa pa rin ang Pilipino sa pagbabago. Iba na talaga ang situwasyon. Puwede na muling mangarap. Tayo nang tumungo sa katuparan ng ating mga pinangarap.
Maraming salamat po.
Speaker Feliciano Belmonte; Senate President Juan Ponce Enrile; Vice President Jejomar Binay, Chief Justice Renato Corona, Former Presidents Fidel Valdez Ramos and Joseph Ejercito Estrada; Members of the House of Representatives and the Senate; distinguished members of the diplomatic corps;
My beloved countrymen:
Our administration is facing a forked road. On one direction, decisions are made to protect the welfare of our people; to look after the interest of the majority; to have a firm grip on principles; and to be faithful to the public servant’s sworn oath to serve the country honestly.
This is the straight path.
On the other side, personal interest is the priority, and where one becomes a slave to political considerations to the detriment of our nation.
This is the crooked path.
For a long time, our country lost its way in the crooked path. As days go by (since I became President), the massive scope of the problems we have inherited becomes much clearer. I could almost feel the weight of my responsibilities.
In the first three weeks of our administration, we discovered many things, and I will report to you some of the problems we have uncovered, and the steps we are taking to solve them.
This report is merely a glimpse of our situation. It is not the entire picture of the crises we are facing. The reality was hidden from our people, who seem to have been deliberately obfuscated on the real state of our nation.
In the first six years of this year, government expenditure exceeded our revenues. Our deficit further increased to PhP196.7 billion. Our collection targets, which lack PhP23.8 billion, were not fully met, while we went beyond our spending by PhP45.1 billion.
Our budget for 2010 is PhP1.54 trillion. Of this, only PhP100 billion – or 6.5% of the total budget – can be used for the remaining six months of the current year. Roughly 1% of the total budget is left for each of the remaining month.
Where did the funds go?
A calamity fund worth PhP2 billion was reserved in preparation for anticipated calamities. Of this already miniscule amount, at a time when the rainy season has yet to set in, PhP1.4 billion or 70% was already spent.
The entire province of Pampanga received PhP108 million. Of this, PhP105 million went to only one district. On the other hand, the province of Pangasinan, which was severely affected by Typhoon Pepeng, received a mere PhP5 million, which had to be used to fix damages inflicted not even by Pepeng, but by a previous typhoon, Cosme.
The funds were released on election month, which was seven months after the typhoon. What will happen if a typhoon arrives tomorrow? The fund has been used up to repair damage from typhoons that hit us last year. Our future will pay for the greed of yesterday.
This is also what happened to the funds of the MWSS. Just recently, people lined up for water while the leadership of the MWSS rewarded itself even though the pensions of retired employees remain unpaid.
The entire payroll of the MWSS amounts to 51.4 million pesos annually.
But this isn’t the full extent of what they receive: they receive additional allowances and benefits amounting to 81.1 million pesos.
In short, they receive 211.5 million pesos annually. Twenty four percent of this is for normal salaries, and sixty six percent is added on.
The average worker receives up to 13th month pay plus a cash gift. In the MWSS, they receive the equivalent of over thirty months pay if you include all their additional bonuses and allowances.
What we discovered in the case of the salaries of their board of trustees is even more shocking. Let’s take a look at the allowances they receive:
Attending board of trustees and board committee meetings, and you get fourteen thousands pesos. This totals ninety eight thousand pesos a month. They also get an annual grocery incentive of eighty thousand pesos.
And that’s not all. They get a mid-year bonus, productivity bonus, anniversary bonus, year-end bonus, and financial assistance.
They not only get a Christmas bonus, but an additional Christmas package as well. Each of these amounts to eighty thousand pesos. All in all, each member of the board receives two and a half million pesos a year exclusive of car service, technical assistance, and loans. Let me repeat. They award themselves all of these while being in arrears for the pensions of their retired employees.
Even the La Mesa watershed wasn’t spared. In order to ensure an adequate supply of water, we need to protect our watersheds.
In watersheds, trees are needed. Where there should be trees, they built homes for the top officials of the MWSS.
We cannot remove them from their positions quickly because they are among the midnight appointees of former president Arroyo. We are investigating all of these things. But if they have any shame left, they should voluntarily relinquish their positions.
Now let’s discuss funds for infrastructure. The DPWH identified two hundred forty six priority safety projects to be funded by the motor vehicle user’s charge. This needs a budget of 425 million pesos. What they ended up funding were only 28 projects. They disregarded 218 projects and replaced these with seventy projects that weren’t in the plans. The 425 million pesos originally asked for became 480 million pesos, increasing because of projects allocated for a favored few.
These projects make no sense: unstudied and unprepared for, sprouting like mushrooms.
The era of such projects is at an end. Under our administration, there will be no quotas, there will be no overpricing, the funds of the people will be spent for the people.
There’s more. Five days before the term of the previous administration ended, they ordered 3.5 billion pesos to be released for the rehabilitation of those affected by typhoons Ondoy and Pepeng. This was supposed to fund eighty-nine projects. But nineteen of these projects amounting to 981 million pesos didn’t go through public bidding. Special Allotment Release Orders hadn’t even been released and yet the contracts were already signed. It’s a good thing Secretary Rogelio Singson spotted and stopped them.
Instead, they will all go through the proper bidding, and the funds will be used to provide relief to those who lost their homes due to typhoons Ondoy and Pepeng.
Let’s discuss what happened in Napocor. From 2001 to 2004, the government forced Napocor to sell electricity at a loss to prevent increases in electricity rates. The real motivation for this is that they were preparing for the election.
As a result, in 2004, NAPOCOR slumped deeply in debt. The government was obligated to shoulder the 200 billion pesos it owed.
What the public thought they saved from electricity, we are now paying for using public coffers. Not only are we paying for the cost of electricity; we are also paying for the interest arising from the debt.
If the money we borrowed was used properly, then there would be added assurance that constant supply of electricity is available. However, this decision was based on bad politics, not on the true needs of the people.
The people, after having to sacrifice, suffered even more.
This is also what happened to the MRT. The government tried again to buy the people’s love. The operator was forced to keep the rates low.
In effect, the guarantee given to the operator that he will still be able to recoup his investment was not fulfilled. Because of this, Landbank and the Development Bank of the Philippines were ordered to purchase the MRT.
The money of the people was used in exchange for an operation that was losing money.
Let us now move on to the funds of the National Food Authority (NFA).
In 2004: 117,000 metric tons (of rice) was the shortage in the supply of the Philippines. What they (the government) bought were 900,000 metric tons.
Even if you multiply for more than seven times the amount of shortage, they still bought more than what was needed.
In 2007: 589,000 metric tons was the shortage in the supply of the Philippines. What they bought were 1.827 million metric tons. Even if you multiply for more than three times the amount of shortage, they again bought more than what was needed.
What hurts is, because they keep purchasing more than what they need year after year, the excess rice that had to be stored in warehouses ended up rotting, just like what happened in 2008.
Is this not a crime, letting rice rot, despite the fact that there are 4 million Filipinos who do not eat three times a day?
The result is NFA’s current debt of 177 billion pesos.
This money that was wasted could have funded the following:
– The budget of the entire judiciary, which is at 12.7 billion pesos this year.
– The Conditional Cash Transfers for the following year, which cost 29.6 billion pesos.
– All the classrooms that our country needs, which cost 130 billion pesos.
This way of doing things is revolting. Money was there only to be wasted. You have heard how the public coffers were squandered. This is what is clear to me now: change can only come from our determination to stamp out this extravagance and profligacy.
That is why starting now: we will stop the wasteful use of government funds. We will eradicate projects that are wrong.
This is the point of what we call the zero-based approach in our budget.
What used to be the norm was every year, the budget merely gets re-enacted without plugging the holes.
Next month we will be submitting a budget that accurately identifies the problem and gives much attention on the right solution.
Those that I have mentioned were only some of the problems we have discovered. Here now are examples of the steps we are undertaking to solve them.
There is a case of one pawnshop owner. He purchased a vehicle at an estimated cost of 26 million pesos.
If he can afford to buy a Lamborghini, why can’t he pay his taxes?
A case has already been filed against him. Through the leadership of Finance Secretary Cesar Purisima, BIR Commissioner Kim Henares, Customs Commissioner Lito Alvarez, and Justice Secretary Leila de Lima, every week we have new cases filed against smugglers and against those who do not pay the right taxes.
We have also already identified the suspects of the cases of Francisco Baldomero, Jose Daguio and Miguel Belen, 3 of the 6 incidents of extralegal killings since we assumed the Presidency.
Fifty percent (50%) of these incidents of extralegal killings are now on their way to being resolved.
We will not stop the pursuit of the remaining half of these killings until justice has been achieved.
We will hold murderers accountable. We will also hold those who are corrupt that work in government accountable for their actions.
We have begun forming our Truth Commission, through the leadership of former Chief Justice Hilario Davide. We will search for the truth on the alleged wrongdoing committed in the last nine years.
This week, I will sign the first ever Executive Order on the formation of this Truth Commission.
If the answer to justice is accountability, the answer to the dearth in funds is a new and creative approach to our long-standing problems.
We have so many needs: from education, infrastructure, health, military, police and more. Our funds will not be enough to meet them.
No matter how massive the deficit is that may keep us from paying for this list of needs, I am heartened because many have already expressed renewed interest and confidence in the Philippines.
Our solution: public-private partnerships. Although no contract has been signed yet, I can say that ongoing talks with interested investors will yield fruitful outcomes.
There are some who have already shown interest and want to build an expressway from Manila that will pass through Bulacan, Nueva Ecija, Nueva Vizcaya, until the end of Cagayan Valley, without the government having to spend a single peso.
On national defense:
We have 36,000 nautical miles of shoreline, but we only have 32 boats.
These boats are as old as the time of (US General Douglas) MacArthur.
Some had this proposition: they will rent the Navy headquarters on Roxas Boulevard and the Naval Station in Fort Bonifacio.
They will take care of the funding necessary to transfer the Navy Headquarters to Camp Aguinaldo. Immediately, we will be given 100 million dollars. Furthermore, they will give us a portion of their profits from their businesses that would occupy the land they will rent.
In short, we will meet our needs without spending, and we will also earn.
There have already been many proposals from local to foreign investors to provide for our various needs.
From these public-private partnerships, our economy will grow and every Filipino will be the beneficiary. There are so many sectors that could benefit from this.
We will be able to construct the needed infrastructure in order to help tourism grow.
In agriculture, we will be able to have access to grains terminals, refrigeration facilities, orderly road networks and post-harvest facilities.
If we can fix out food supply chain with the help of the private sector, instead of importing, we will hopefully be able to supply for the needs of the global market.
The prices of commodities will go down if we are able to make this efficient railway system a reality. It will be cheaper and faster, and it will be easier for travelers to avoid crooked cops and rebels.
A reminder to all: creating jobs is foremost on our agenda, and the creation of jobs will come from the growth of our industries. Growth will only be possible if we streamline processes to make them predictable, reliable and efficient for those who want to invest.
We make sure that the Build-Operate-and-Transfer projects will undergo quick and efficient processes. With the help of all government agencies concerned and the people, a process that used to take as short as a year and as long as a decade will now only take six months.
The Department of Trade and Industry has already taken steps to effect this change, under the leadership of Secretary Gregory Domingo:
The never-ending horror story of registering business names, which used to take a minimum of four to eight hours depending on the day, will be cut down drastically to fifteen minutes.
What used to be a check list of thirty-six documents will be shortened to a list of six, and the old eight-page application form will be whittled down to one page.
I call on our local government units to review its own procedures. While we look for more ways to streamline our processes to make business start-ups easier, I hope the LGUs can also find ways to implement reforms that will be consistent with the ones we have already started.
All will certainly benefit from this streamlining — be it businessmen, soldiers, rebels and ordinary Filipinos. As long as the interests of Filipinos will not be jeopardized, we will explore all available avenues to make this a reality. We must start now, and we should all help achieve this and not stand in each other’s way.
The time when we will no longer be made to choose between our people’s security and the future of our children is upon us now.
Once we implement these public-private partnerships, we will be able to fund public service in accordance with our platform.
This will enable us to fund our plans for education.
We will be able to expand our basic education cycle from seven years to the global standard of twelve years.
We can build more classrooms, and we will fund service contracting under the Government Assistance to Students and Teachers in Private Education Program (GASTPE).
Conditional cash transfers that aim to lessen the burden of education on parents will also be funded if this partnership becomes a reality.
Our plans for improving PhilHealth can now be within reach.
First, we will identify the correct number of Filipinos who sorely need PhilHealth coverage, as current data is conflicting on this matter. On one hand, PhilHealth says that eighty-seven percent (87%) of Filipinos are covered, then lowers the number to only fifty-three percent (53%). On the other hand, the National Statistics Office says that only thirty-eight percent (38%) of Filipinos are covered by Philhealth.
Even as we speak, Secretary Dinky Soliman and the Department of Social Welfare and Development are moving to implement the National Household Targeting System that will identify the families that most urgently need assistance. An estimated 9 billion pesos is needed in order to provide coverage for five million poor Filipinos.
Our country is beginning to see better days ahead. The private sector, the League of Provinces headed by Governor Alfonso Umali, together with Governors L-Ray Villafuerte and Icot Petilla, are now ready to do their share when it comes to shouldering the financial burden. I know that the League of Cities under the leadership of Mayor Oscar Rodriguez will not be far behind.
If the local governments share in our goals, I know that I can surely count on Congress, the institution where I began public service, to push for our agenda for change.
Our Cabinet has already showed it skill by identifying not just problems but also proposing solutions in a matter of three weeks.
In the aftermath of Typhoon Basyang, we were told by those in the power sector that we would be without electricity for four days. The quick action of Secretary Rene Almendras and the Department of Energy resulted in the restoration of power to almost all those affected within twenty-four hours.
The so-called water shortage in Metro Manila was quickly attended to by Secretary Rogelio Singson and the Department of Public Works and Highways. Secretary Singson did it without prodding, which alleviated the suffering of those affected.
We also witnessed the competence and initiative of those we appointed to be part of our Cabinet. It is but just that they not be forced to go through the eye of a needle to be confirmed by the Commission on Appointments.
Should this happen, competent Filipinos will be encouraged to help our country by becoming public servants.
In the soonest possible time, we will convene the Legislative Executive Development Advisory Council (LEDAC) to discuss the important bills that need to be addressed. Rest assured that I will keep an open mind and treat you honorably.
We will push for the Fiscal Responsibility Bill, which will limit spending bills only for appropriations that have identified a source of funding. We need 104.1 billion pesos to fund those laws already passed but whose implementation remains pending because of lack of funds.
We will re-evaluate fiscal incentives given in the past. Now that we are tightening our purse strings, we need to identify those incentives that will remain and those that need to be done away with.
We will not allow another NBN-ZTE scandal to happen again. Whether from local or foreign sources, all proposed contracts must undergo the scrutiny of correct procedures. I now ask for your help with amending our Procurement Law.
According to our Constitution, it is the government’s duty to ensure that the market is fair for all. No monopolies, no cartels that kill competition. We need an Anti-Trust Law that will give life to these principles, to afford Small- and Medium-Scale Enterprises the opportunity to participate in the growth of our economy.
Let us pass into law the National Land Use Bill.
It was in 1935, during the Commonwealth, that the National Defense Act was passed. There is a need to amend for a new law that is more responsive to the current needs of national security.
I appeal to our legislators to pass the Whistleblower’s Bill to eradicate the prevalent culture of fear and silence that has hounded our system.
We will strengthen the Witness Protection Program. We must remember that from 2009 to 2010 alone, cases which involved the participation of witnesses under the program resulted in a ninety-five percent conviction.
There is a need to review our laws. I call on our lawmakers to begin a re-codification of our laws to ensure harmony in legislation and eliminate contradictions.
These laws serve as the basis of order in our land, but the foundation of all rests on the principle that we cannot grow without peace and order.
We face two obstacles on our road to peace: the situation in Mindanao and the continued revolt of the CPP-NPA-NDF.
Our view has not changed when it comes to the situation in Mindanao. We will only achieve lasting peace if all stakeholders engage in an honest dialogue: may they be Moro, Lumad, or Christian. We have asked Dean Marvic Leonen to head our efforts to talk to the MILF.
We will learn from the mistakes of the past administration, that suddenly announced an agreement reached without consultations from all concerned. We are not blind to the fact that it was done with political motivation, and that the interest behind it was not that of the people.
We recognize the efforts of the MILF to discipline those within its ranks. We are hopeful that the negotiations will begin after Ramadan.
To the CPP-NPA-NDF: are you prepared to put forth concrete solutions rather than pure criticism and finger-pointing?
If it is peace you truly desire, then we are ready for an immediate cease-fire. Let us go back to the table and begin talking again.
It is difficult to begin discussions in earnest if the smell of gun powder still hangs in the air. I call on everyone concerned not to waste a good opportunity to rally behind our common aspiration for peace.
Our foundation for growth is peace. We will continue to be shackled by poverty if the crossfire persists.
We must understand that now is a time for sacrifice. It is this sacrifice that will pave the way for a better future. With our freedom comes our responsibility to do good unto our fellows and to our country.
To our friends in media, especially those in radio and print, to the block-timers and those in our community newspapers, I trust that you will take up the cudgels to police your own ranks.
May you give new meaning to the principles of your vocation: to provide clarity to pressing issues; to be fair and truthful in your reporting, and to raise the level of public discourse.
It is every Filipino’s duty to closely watch the leaders that you have elected. I encourage everyone to take a step towards participation rather than fault-finding. The former takes part in finding a solution; from the latter, never-ending complaints.
We have always known that the key to growth is putting the interest of others beyond one’s own. One thing is clear: how do we move forward if we keep putting others down?
How will those without education secure quality jobs? How will the unemployed become consumers? How will they save money for their future needs?
If we change all this, if we prioritize enabling others, we will open a world of opportunities not just for ourselves but for those who direly need it.
We have already begun the process of change, and we are now able to dream of better things for our country. Let us not forget that there are those who wish us to fail, so that they will once again reclaim power to do as they please at the expense of our people.
My firm belief is that our fate is in the hands of God and our people. While we focus on uplifting the lives of our fellow men, I have an unshakeable faith that Almighty God will give us His blessings and support. If we remain firm in our belief that God is on our side, is there anything impossible for us to achieve?
The mandate we received last May 10 is testament to the fact that the Filipino continues to hope for true change. The situation is not what it was before; we can all dream again. Let us all become one in achieving a fulfilment of our hopes and aspirations for our country.
Officers and members of the Makati Business Club, Your Excellencies of the diplomatic corps, ladies and gentlemen, my friends and countrymen.
Thank you very much for giving me the opportunity to address you. I trust your asking me first is not based on alphabetical order, or based on age, but perhaps, based on who you think will most likely win the coming election.
As managers, you recognize that one of the necessary skills of an effective manager is time management. Is it possible that you have invited me to determine if there is still a necessity to spend time with the others?
Baka naman inuna niyo ako upang malaman kung sapat na ako at hindi na kailangang pansinin yung iba?
I think we are all aware of the problems facing our country. We share the same statistics. We probably even share the same conclusions about the need for better governance. To rehash all of these problems at this forum would be a waste of your time. But what we have now is an opportunity for you to get to know me, to find out the advocacies that I champion, the perspective and philosophies I bring to the equation and some of my proposed solutions to give an insight into my inner persona.
Levity aside, the political exercise that we will engage in this May is a crucial one. It will be, as it is for every fledgling democracy, a test of the strength of our political institutions. The peaceful transition of power has become a symbol of political maturity across the world, with many still failing to achieve the credibility that is the cornerstone of a genuine political mandate. With the electoral scandals that have stalled our democratic progress as of late, it is not a test that we can afford to fail.
We have an administration whose mandate is clouded in doubt and overshadowed by allegations of fraud because it refused every opportunity to clear the air and be held to account. Its choices have limited its decision-making to seeking ways to ensure day-to-day political survival and self-interest. We must now become a government committed to accountability. A government that works with the people in achieving long-term change.
We must make the shift from bare economic survival to robust economic growth. We must make the change from treading water to keep afloat, to reaching that promised shore where we can all stand tall as healthy, happy, educated and responsible fellow citizens.
But why does transformation seem like such an impossible dream?
Isa sa mga tema ng ating kalaban, yung “ang pagbabago, madaling sabihin yan pero mahirap gawin,” is probably echoed by a lot of Filipinos. The oft-repeated question is, why can’t we advance? Why can’t we progress? What is it in us that limits or prohibits our growth as a people and as a country?
All of you are aware that most of the contenders have had years, possibly even decades, of preparation for this electoral exercise. I had no such ambitions to run in the 2010 elections but I responded to the people’s clamor. I am but the face of what we believe is the overwhelming demand of our people to repudiate everything wrong in the current administration.
Given that I only announced my decision to seek the presidency on September 9, and I only came to that decision the day before, I have not had material time comparable to our opponents. What is perplexing is that viewing the same problems, and having access to the same data for the most part, we believe the solutions have been there all along, and necessitate only clear political will to execute. But most of our opponents seem to indicate the contrary opinion that there is very little that we can do to change the situation. One has to wonder: did they overstudy the problem, or are they committed to preserving the status quo?
If the leader is not convinced that change is not only necessary, but extremely possible, how does he lead us to the promised land?
What is it that we want to change?
We want to repair the damage that has been wrought on our democratic institutions by those who have sought to manipulate them for their own selfish ends.
We want to improve the situation of our people, who have suffered years of neglect because of a self-absorbed leadership obsessed with political survival.
They are poor. Many of them are homeless. Each year, we add some 2.5 million mouths to feed to our already hungry population. Of these new additions, one third were the result of unplanned pregnancies. We have a growing underclass that statistics tell us have given up looking for work. A permanent underclass that includes the five million of our countrymen that are illiterate, which means their opportunities in life will always be limited to living hand-to-mouth.
We want to give our young the opportunity and means to improve their lot in life.
It can only begin if our children and their parents are assured that money spent on education is money well spent. Unfortunately, students are at the mercy of our decrepit education system that allows double shifting, erroneous textbooks and substandard nursing schools to exist. No less than DepEd officials admitted that students in Grade 1 take three subjects in one class period. We have a procurement program so heedless of the need for excellence that it doesn’t care if it produces a textbook series riddled with 500 factual errors. For every hundred kids that start grade school with the hope of achieving their dreams, only fourteen will graduate from college and possess a tangible means to materially improve their lives.
To my mind, the crucial, lacking element in all these is a government committed to a transformation: from a society overwhelmingly poor to one overwhelmingly middle class. In every developed, progressive, prosperous democracy, it is the middle class that is the biggest class. Government, for one, has failed to make the conceptual leap from patronage to development. Efforts at feeding the hungry, clothing the naked, providing basic care to the sick, and offering a quality education aren’t only the people’s rights; they are the essential tools for individual self-improvement.
In 1998, when I first campaigned for office, one lady bluntly told me that regardless of who is elected, things would remain the same for her.
What did she mean?
That she was poor to begin with; that she would remain poor, and in fact, she would be lucky if she didn’t end up poorer, after the candidates leave office.
This brings up the question at the forefront of the minds of our countrymen still undecided on whom to vote for, and pursued by my critics. If this is a time that calls for national transformation, am I qualified to be that transformative leader? Having answered the call of duty, can I ask you or anyone to entrust me with your vote, on faith alone? Never having sought the presidency, I preferred to do my duty and not seek the limelight. Now that I have been thrust in the limelight, it is only fair to answer the question: before you tell us what we can do, what have you done?
I have always believed that the job of an effective legislator goes beyond merely proposing laws, for what are laws but written agreements entered into by members of society on how to harmonize their mutual relations? In fact, I do not believe that we suffer from the problem of too few laws. One of my proposed measures was the recodification of laws, in response to an appeal from the legal community to put some order into our laws, their amendments and those that have been repealed, because even our lawyers are at times confused.
Consider the recent controversy over who gets to appoint the next Chief Justice. We maintain that there are no ifs and buts in Article 7 Section 15 of the Constitution where it states that the current President cannot appoint anybody within two months prior to a presidential election up to the end of her term. An exemption exists, but it applies only for positions in the Executive Department. Yet you have two retired justices arguing exactly the opposite. How can former justices of the Supreme Court be so seemingly confused, when the fact is that the provision regarding presidential appointments is stated clearly in the law?
Our problem is the lack of political will to faithfully implement the many world-class laws that our legislature has passed. A preference for ambiguity even when times call for clarity, leads to artificial controversies. Insecure or overly ambitious leaders need to create a climate of doubt, because it’s in the grey areas that its ambitions thrive.
It is in addressing this problem that I focused on the fiscalizing aspect of a legislator’s job – on Congress’ oversight and investigative functions.
Consider intelligence funds. In the proposed 2010 budget, a total of 1.4 billion was allocated to confidential and intelligence funds.
Woodrow Wilson once wrote that oversight is always preferable to investigation, which is like putting out a fire instead of preventing one. We proposed that if the Executive wants orderly transactions, at least a few members of Congress should be privy to all of the details to determine if they were spent properly. However, this proposal was dismissed out of hand without even a single hearing for the reason that they undermined the Executive’s privileges.
And yes, the investigations were a vital part of my functions, too. I don’t think anyone will begrudge me my efforts in this regard. From Hello Garci and the impeachments, to NBN-ZTE and the fertilizer scam, I did my duty at the forefront of these issues.
The original design of the NBN-ZTE project required a BOT agreement between government and the supplier, not a government loan. But during the NBN-ZTE hearings, we learned that the project was entered into through a government loan despite instructions to the contrary from no less than the President herself. The cost of the intended government loan was P40 billion, (in which P16 billion was for the backbone and P24 billion was for the CyberEd project.) Jun Lozada belied this when he cited P5 billion as the actual cost of the entire project. Ito yung sinasabi niyang kalakaran ng gobyerno, kung saan sa sobrang laki ng patong, bubukol na.
SCTEx took around 8 years to construct before it finally opened. Projects of this scale normally require two years to complete. Furthermore, when SCTEx finally became operational, it was found that the central hub, which was Clark, did not have an exit, excluding Clark from the Subic Clark Tarlac expressway itself. How can one justify these kinds of delays where opportunities are lost, costs have escalated and the people’s burdens, instead of being reduced, end up being compounded?
My active role in these congressional hearings has put me at odds with the administration. In 2005, it cost me my post as Deputy Speaker. It continues to put me at odds with the coalition of self-interest that currently holds power. It puts me at odds with other candidates for the presidency.
To lead transformation, you cannot be part of the problem. As I said when I accepted the people’s draft, the job of chief executive is about the efficient allocation of resources. If you have hogged those resources for yourself, if you have lied, cheated, and stolen to gain power, how can you be trusted to lead the transformation our country needs?
Going back on the issue of appointing a Chief Justice prior to the forthcoming elections. If we are to transform the country, it begins with doing what we can, now, to limit the damage and give our people a fighting chance to rebuild our damaged institutions. The Constitution imposes a blanket prohibition with few exceptions concerning midnight appointments. A candidate cannot ask for the people’s mandate, pledging to improve the situation tomorrow, if he becomes complicit in worsening the situation today.
Hindi naman mahirap gawin ang tama. Alam naman ng lahat yan eh. Wala namang magic, wala namang sikreto. Pero bakit pilit pa ring ginagawa ang mali?
There is a widespread perception that success in the business milieu can almost be directly correlated to your closeness to the powers-that-be. Because of this, some players in the industry are forced to focus their activities on maintaining relationships in order to retain the favors that they receive in exchange for cultivating that relationship. This has fostered the wrong kind of competitiveness. While it may work, locally, for now, it has not enabled these players to become competitive in the world market, where the rules of the game do not take special relationships into consideration.
We will encourage free and fair competition in a level playing field. One not need be a crony in order to succeed in the field of business. More importantly, government will not compete with business. Nor will government use its regulatory powers to extort, intimidate and harass.
We will transform our systems to foster service to the public instead of making citizens jump through hoops. We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with government, such as the payment of taxes. We will do this on a national as well as the local level.
In 2010, our next President will inherit a continually bloating deficit. As of November 2009, the deficit of the national government already reached P272.5 billion, or 4.1% of GDP.
In addressing the looming fiscal crisis, good governance and the drive against corruption are critical components in our strategy. We will refrain from imposing new taxes or increasing tax rates.
I strongly believe that we can collect more taxes at the BIR and higher duties at Customs if we become more serious in curbing and punishing tax evasion and smuggling. The BIR’s collection dropped by 5.5%, while that of Customs declined by 16.6%. This is the first time in recent history that absolute revenues have actually declined.
Our initial focus then will be to capture a good part of the revenue leaks caused by smuggling and evasion. In this effort, we will not be starting from zero. Be assured that those smugglers and evaders are not faceless and unknown entities. The ideas to improve tax administration and to control smuggling have been there for some time and some programs have been initiated in the past. One of these successful programs was the RATE or Run After Tax Evaders. In fact, some of the people at the Department of Finance and the BIR who have tried to implement reforms before are with us now, and together with reform-minded career executives, we intend to put their commitment and talents to good use under my administration.
My vision is to transform our country into one where we have lower tax rates enjoyed by all, rather than have some enjoy absolute tax exemptions while we burden the rest of the economy with very high tax rates. I believe that markets are better than government in spotting where the growth opportunities are, and, with universal low tax rates, we will encourage entrepreneurs and enterprises to invest and create jobs in any industry. We will, therefore, pursue the rationalization of fiscal incentives early in my administration.
There is a lot of room for our revenue base to grow. Our tax effort has gone down from 17% at its peak to a worrisome 13% today. If we can only bring this back even to just the 15% level, that will translate to P150 billion in additional revenues, which would make a significant dent in cutting our deficit.
My budget team estimates that for 2009 alone, around P280 billion of our national budget was lost to corruption. If we take the years 2002 to 2009 the total estimates exceed one trillion. Estimates vary, but everyone agrees that the numbers are huge.
If we agree that change is necessary, how can a Presidential aspirant, whose own financial and political ethics are questionable, be effective in leading transformation as the head of the bureaucracy? How can a leader, who is benefiting from the status quo, be able to restore a civic sense and pride in our citizenry? The leader, who has used public office for private gain, will always be the most committed enemy of change.
Rich or poor alike, we have a tangible experience of the sorry state of public infrastructure at present: traffic, which eats up time, which as the saying goes, is money. Railways are built at bloated cost; urban transport is constructed, but not enough trains are on track. Our people are the first to experience the effect of something that works and conversely, something that is badly done because bad intentions handicapped the project from the start.
It is time that our infrastructure agencies and LGUs transform into cooperative ventures with the private sector by bringing forth an agreed public infrastructure program, based on a cohesive plan that optimizes the value of the entire network. In our conversations with members of the private sector, there has been a lot of positive feedback about possibly working with government on this endeavor.
To transform infrastructure projects from sources of waste and scandal into examples of cooperation and efficiency, we will set objective criteria for different types of projects and develop a scorecard that will assess various projects against benchmarks transparent to the public.
Initially we want our infrastructure program to transform from being the means to enrich a few, to being labor-intensive and biased for employment as a means to pump-prime the economy.
When I read about countries that have invested in their agriculture sectors and succeeded, it always pains me to find that these countries – Vietnam and Thailand, to name just a couple – had started by sending their experts to be educated in the Philippines. It seems that we cannot implement among ourselves the lessons we successfully imparted to experts from elsewhere. This will have to change. We must be able to harness our homegrown talent in order to further our local industries.
When we change administrations, there must be a complete review of all the programs in the Department of Agriculture. We can do a lot for our farmers given the present budget of the Department if we eliminate the leaks and focus on the efficient use of resources. For example, we must stop eating up millions in mere administrative costs as in the case of NABCOR, which charged our government P60 million because it served as a useless conduit to regional offices. We will also support efforts such as supply chain management that minimizes losses, creates jobs, consults with stakeholders, and capitalizes on our competitive advantage.
Our core belief is that the current approach to governance and power must change. That is why our terms of reference always begin with the present government, what it has done, and how different our institutions and our nation must be six years from June 30, 2010.
In a small-scale operation it is easy for everyone involved to visualize that entity as the combination of their collective efforts. As opposed to, say, when you are a bigger firm, and there is the management side and there is the labor side. In Tagalog, it’s even more dramatic. Kayo at kami, sa halip na tayo.
We must find a unity that transcends the divisions of today, based on a shared commitment to transforming our country into one that works: One where traffic flows well, garbage is collected efficiently, crimes are solved, justice is served, and our kids are educated properly. It works in the sense that you do not have to flee the country to move up in the world, improve your lot in life, and rise to the highest level your personal merits can achieve.
We are a nation of sacrifice, of diligence, dedication and, idealism, because we are a people imbued with compassion even when we have officials who lie, cheat, and steal. Our faith teaches us that we are our brother’s keeper. Our logic should tell us that in taking care of others, their growth equals our own.
In the movie “Invictus,” Nelson Mandela says, “In order to rebuild our nation, we must exceed our own expectations.” It requires us to insist, always, that we are not a nation of crooks, of thieves, of murderers who get off scot-free and where justice is won by the highest bidder.
In May, you will be asked to make a choice. Will you choose transformation and change or will you choose to uphold the status quo?
We have already made our choice. Ours is a journey towards transformation. I ask you today to join us in this journey now.
Corruption is the main cause of poverty in the country and the reason why Filipinos have lost trust in government. Noynoy Aquino believes that corruption is not part of our culture and that Filipinos are honest, decent, fair and hardworking. Honest and competent public officers and a professional and accountable civil service supported by active people’s participation will remove corruption and restore trust in government.
As President, Noynoy Aquino will lead the fight against corruption and restore trust in government.
Noynoy Aquino will appoint public officials based on their integrity, qualifications and performance record and will hold them accountable to the highest ethical standards of public office.
As required by law, all Department Secretaries, Heads of Agencies, and senior officials from Director to Undersecretaries will be required to have their Statement of Assets, Liabilities and Net Worth (SALN) available and accessible to the public.
An Aquino Administration will ensure transparency and citizen’s participation in crafting and implementing laws, rules and regulations and in monitoring the programs, projects and transactions of government.
Uphold the people’s right to information on matters of public concern and support the enactment of the Freedom of Information Bill in Congress.
To enable citizens to help stop corruption, information about the government’s budget shall be organized, packaged and distributed to the media regularly and posted in the internet so the public may know, understand and monitor how their money is spent.
Strengthen people’s participation with simple and clear procedures for citizens to monitor all government projects and report their feedback through accessible means.
Strengthening the Department of Justice (DOJ) and the Office of the Ombudsman will be a top priority in the campaign against corruption. We will fully implement the recently passed Prosecution Service Act in order to strengthen the national prosecution service, attract qualified lawyers, and institutionalize a more effective witness protection program while improving training and equipment.
Ensure the independence of the Office of the Ombudsman by appointing a competent and credible Ombudsman who will be true to the mandate of the office and will pursue unresolved cases of corruption and human rights abuses committed by public officers.
An Aquino Administration will put into place a “zero-based” budgeting system to enhance transparency and improve efficiency.
Budget allocations for the different agencies of government will be shaped by their performance and their compliance with the reports of the Commission on Audit (COA).
Noynoy Aquino respects the professional bureaucracy and will establish ways to motivate and energize the professional bureaucracy.
Qualification standards, especially on eligibility, will be strictly followed, and at least half of the positions of Undersecretaries and Assistant Secretaries will be filled by honest and competent career civil servants to ensure continuity and sustainability of effective policies and programs.
Government offices will be streamlined and rationalized so that agencies have clear cut and distinct mandates in order to spur greater efficiency and accountability.
Performances of government agencies and civil servants will be evaluated rationally and systematically through an effective and measurable performance management system to be approved by the Civil Service Commission (CSC).
The Civil Service Commission (CSC) Performance Management System-Office Performance Evaluation System (PMS-OPES) will be linked with the DBM Organizational Performance Indicator Framework (OPIF) to ensure accountability of government agencies and officials.
Review the mandates and performance of government agencies and Government Owned or Controlled Corporations (GOCCs).
Underlying all the problems and weaknesses of the country and the economy is corruption and the weakening of our democratic institutions. We will restore trust in government by emphasizing good governance and anti-corruption to increase investment, regain people’s trust to pay proper taxes and ensure that the people’s money is well spent.
We will uphold the people’s right to information on matters of public concern and vigorously support the enactment of the Freedom of Information Bill in Congress
We will ensure transparency and citizen’s participation in crafting and implementing laws, rules and regulations and in monitoring the programs, projects and transactions of government
We will put into place a “zero-based” budgeting system to enhance transparency and improve efficiency.
Budget allocations for the different agencies of government will be shaped by their performance and their compliance with the reports of the Commission on Audit (COA)
Qualification standards, especially on eligibility, will be strictly followed, and at least half of the positions of Undersecretaries and Assistant Secretaries will be filled by honest and competent career civil servants to ensure continuity and sustainability of effective policies and programs
Performances of government agencies and civil servants will be evaluated rationally and systematically through an effective and measurable performance management system to be approved by the Civil Service Commission (CSC).
We will have broad based and inclusive economic growth through increased incomes by generating quality jobs and attracting more investments.
We will have a government that is not corrupt and is business-friendly, thus lowering the cost of doing business and production in the country.
We will reduce red tape, reducing the number of processes required to do business in the country.
We will improve infrastructure in transportation and housing, which will generate jobs and also support investments.
We will directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage, industries that have already been identified by domestic and foreign business groups and include agribusiness, business process outsourcing, creative industries, infrastructure, manufacturing and logistics, socially responsible mining and tourism and retirement.
In the immediate short term, we will take care of the most vulnerable and marginalized sectors of society through programs such as conditional cash transfers dedicated, among others, to keeping healthy young children in school.
We will promote entrepreneurship that provides employment, helping small and medium firms with access to credit and diffusion of technologies and skills.
We will focus investment expenditure in the very urgent need to invest in education (especially in early childhood education) and in health.
We will promote technical/vocational schools to strengthen the labor supply and better match the needs of enterprises.
A clean government will facilitate macroeconomic stability, reigning in the record level deficits of the current administration, and bringing down the debt-to-GDP ratio.
We will plug revenue leakages by having competent and trustworthy tax collectors, broadening the tax base.
We will instruct DBM to lead an internal government review of all its costs and present a plan to reduce government overhead within six months.
We will review policies and programs to enhance productivity and modernize the agricultural sector.
New Customs chief’s target: 2 big smugglers every 2 weeks abs-cbnNEWS.com
MANILA, Philippines – Newly-appointed Bureau of Customs (BoC) chief Angelito Alvarez on Thursday said he will name 2 big-time smugglers every 2 weeks and file cases against them as part of his effort to meet the agency’s revenue target.
Alvarez, however, admitted that despite his 20 years experience dealing with the Bureau of Customs, he would still need more time to start the campaign against smugglers as he is still new in the job.
The new BoC chief’s appointment was announced by Malacañang 2 days ago.
He said the reports about smugglers he has heard are only based on rumors, and the BoC would need to gather proof against them before announcing their names and filing charges against them.
“Meron akong alam. Kailangan lang natin ng ebidensya… ‘Pag ikaw ay nasa private sector, napakarami ng bulungan diyan about the involvement of certain persons. Sa akin, madaling magsalita, [pero] kailangan ng proof,” he said.
Alvarez said going after big-time smugglers is one of the main tasks he received from Finance Secretary Cesar Purisima.
He said Purisima as well as new Bureau Internal Revenue (BIR) chief Kim Henares believe that going all-out against smugglers would boost the BoC’s revenue collection, and effectively provide the government the much-needed funds to implement projects lined up by the new administration.
Alvarez admitted that he was highly recommended by Purisima for the job because of his experience in customs transactions.
The new customs chief served for 20 years under the Lina group, working as a top executive in the companies owned by Bert Lina.
Alvarez, meanwhile, assured that his ties with Lina, who also has transactions at the BoC, will not affect his anti-smuggling campaign.
He said that aside from direct smugglers, the BoC will also start an intensified campaign against technical smuggling and erring employees.
He said he will start the campaign by strengthening the BoC’s force entry audit group.
Alvarez, meanwhile, admitted that when he was interviewed by Executive Secretary Paquito “Jojo” Ochoa on June 29, he got the impression that he would be appointed to the BoC.
He said he thought he would be included in the first group of appointees presented by President Aquino after his inauguration last June 30.
“Nalaman ko kay Secretary Purisima na itong incident ng golf na ito ang nakarating sa atensyon ng Pangulong, naging malaking concern,” he said.
President Aquino has said that one of the primary criteria for his appointees is integrity.
Alvarez’s integrity was put in question over a golf tournament in February at the Alabang Golf and Country Club.
Reports said Alvarez was suspended for 6 months and banned for 5 years by the golf club for allegedly doctoring his scores in the tournament.
The new BoC chief denied the allegation, saying “I [just] played for fun and played honest.”
MANILA, Philippines – The Aquino government filed its first tax evasion case on Thursday to launch its campaign to shore up shaky revenues and cut the budget deficit by cracking down on corruption and enforcing tax collection laws.
Finance officials went to the justice department to file tax evasion charges against pawnshop owner William Villarica, who they said paid only P25,600 in income tax between 1998 and 2009, but was able to buy a P26 million Lamborghini sports car.
“We would like to inform the paying public that it’s no longer business as usual and chances of being caught is higher,” Finance Secretary Cesar Purisima told reporters.
“There will be no compromise under this program,” he added.
Newly installed Bureau of Internal Revenue chief Kim Henares told ANC that the tax agency has been investigating Villarica since 2007, but was only able to file a criminal case against him now.
“It (the case) could have been filed earlier. There are really a lot of people being investigated for tax deficiencies, but the BIR has not historically used its enforcement powers to file criminal cases…until 2005, when we made this a program. Then it has had a roller coaster ride. In 2005, it was emphasized then it slipped down a bit, right now we are emphasizing it again,” Henares said.
She was referring to the “Run After Tax Evaders” or RATE program, which did not do well under the administration of former president Gloria Arroyo.
In the meantime, Justice Secretary Leila de Lima said she was reviewing tax cases referred by the finance department, pointing to a list that had names of 16 individuals and corporations.
The Philippines had a tax collection rate of 12.8% of its gross domestic product (GDP), lower than the regional average of 16 %, the finance minister said.
“From that, it’s obvious that we’re losing roughly 3% of our GDP,” Purisima said, putting lost tax revenues at about $5 billion a year.
The government last week raised the forecast for this year’s budget deficit to P325 billion. As a percentage of GDP, the deficit was expected to be 3.9%, level with 2009, and Purisima has said that will be cut to 2 % over three years.
Purisima said criminal cases would be filed against major smugglers next week. The government was also looking into whether banks had any liability in tax evasion cases, and would also weed out corrupt state workers, he said.
“On this particular case that we filed, obviously that would take a long time, but on the minds that we can influence, the hearts that we create fear, I think you’ll see an increase in revenues. That’s what we’re hoping,” Purisima added.
He also appealed to the public to report tax cheats and smugglers, calling on “underpaid” secretaries to turn in bosses who did not issue receipts and pay the right amount of taxes. With Reuters
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