Solving the Financial Crisis
August 30th, 2004 at 3:31 am (National Politics)
Yes, the Philippines is in a financial crisis. As if we needed President Arroyo to admit it before we realize it. Did we really think that by not talking about it, the probem would just go away? A lot of proposals has been made in order to make up for the huge budget deficit and the burgeoning private loans. Three of which are tax reforms, cutting the Internal Revenue Allotment (IRA) and the slashing off of the legislators Countrywide Development Fund (CDF), more popularly known as the pork barrel. Although these three proposals may look good on paper, I doubt if it will solve the problem on a long-term basis, or if it will solve anything at all.
Tax reforms will only pose an added burden on those who are already, and for a long time have been, suffering from the economic crisis. As I have already poined out, tax reforms will most probably have a bigger impact on those who do not have enough to cover their basic neccessities while those who are enjoying more than enough will juts have to give up a few luxuries, if ay at all.
Similarly, depriving local government units (LGUs) of their IRA will only manage to deprive the struggling LGUs of much-needed resources for their constituency’s basic needs and to solve their own problems which have time and time again been snubbed by the government, unless a photo op is available. Not only would this policy be unfair, it is, above all, UNCONSTITUTIONAL.
Meanwhile, although I am for reducing the legislators’ pork barrels, I am not agreeable to totally depriving the legislators of funds. Currently, each representative is entitled to P70,000,000 (P70 MILLION) while each senator is given P200,000,000 (P200 MILLION) each year. Each legislator may use it as they deem fit to serve the interests of their constituents. Undeniably, most legislators use these funds to either earn pogi points by making waiting sheds and paving roads or to fund his personal needs. It woul be prudent to leave the legislators with funding to maintain the balance of power among the different branches of government. Moreover, it would also serve the best interest of the country if the President herself, would serve as an example to other public servants by slashing some of her own “pork barrel” known as the intelligence fund and social fund.
While these may solve our problems for the meantime, or rather would seem to solve it, we still face a rather bleak future beyond this fiscal crisis. The current fiscal crisis is symptomatic of our government’s bigger problems. Public funds are slim due to tax evasion, most of which continue to be ignored by the government, and most of the little we have are lost to the systemized corruption in the government. Unless there is a shift in our culture, unless there is a change in the status quo by reducing corruption and changing the prevailing paradigm, we will continue to suffer, economically, and more importantly, morally.
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ria said,
September 1, 2004 at 6:30 pm
If by that you mean me, thanks! If not, thanks nonetheless!
GarizaldyCaguindagan said,
September 7, 2004 at 1:56 am
Pork barrel abolish it once and for all so that our nation will move on .thankyou in advance to all legislator who give up their pork barrel . God bless
michelle sarah,tony gonzaga said,
August 30, 2007 at 5:56 am
halo very nice editorial because it presents on how to care our city.