Avila and Lavina Oppose JPEPA
The Japan Philippine Economic Partnership Agreement (JPEPA) has been ratified by the Senate without much dissent. And two Davao City councilors are up in arms against it. First district counciloors Leo Avila III and Peter Laviña have criticized the ratification of JPEPA and have expressed their disappointment over senators who were absent during the ratification. Avila argues that the agreement is beneficial only to the Japan and would be the Philippines at a disadvantage.
NSO: Gap Between Rich and Poor Widens
Despite the strong peso and the growing economy, the records of the National Statistics Office (NSO) show that the gap between the rich and the poor is wider than ever. 1.74 million families (consisting 10% of the population) considered to be the richest earned 36% of the total 2006 family income. This translates to 10% of the population earning more than 1/3 of the country’s money.
PBGEA Appeals Aerial Spraying Ban
The Pilipino Banana Growers and Exporters Association (PBGEA) is now appealing the Regional Court’s decision on the constitutionality of Davao City’s ban on aerial spraying. PBGEA contends that the ban makes their plants susceptible to the Black Sigatoka Disease. They also argue that the ban will eventually lead to the death of the local banana industry.
The Country is not merely an Economy
In her meeting with the executives of media companies, Gloria Macapagal-Arroyo asked for the help of the media so that she is not distracted by politics, in order for her to focus on the economy. According to Arroyo, her three remaining years as President is time for her to build a legacy before she steps down. Arroyo promised to work on the economy so the people may eventually feel its effect.
House of Representatives: 1 Trillion Pesos for 2006
The House of Representatives has approved on the second reading the General Appropriations Act (GAA) for 2006. According to House Speaker Jose de Venecia, the GAA is solidly backed up by funds generated from the Expanded Value Added Tax (EVAT) and the “sin” taxes from tobacco and alcohol.
Now, it’s the Senate’s turn to approve, revise or reject the GAA.
Will 1 trillion pesos do the country good? I hope so. But I don’t think so. Money isn’t really our problem nowadays. The best we can wish for, I guess, is that the 1 tillion pesos go to where it’s supposed to go.
Voices: Robbed Twice Over by Peter Laviña
In the year 2000, the Philippine national government withheld a portion of the internal revenue (IRA) share of the city government of Davao in the amount of P 91 million. The following year, another P 116 million was not released. That totals to a whopping P 207 million. Therefore, the local government was deprived of such a huge amount to deliver the much-needed public services to our people for over five years now.
This money is the “just share” of our city from the collection of national taxes. The national government has no right to withhold it. Both the Constitution and the Local Government Code are clear about this. The Constitution says this just share in the national taxes “shall be automatically released” to local governments. The LGC, on the other hand, said this “shall be automatically and directly released to them without need of any further action.”
In the case Alternative Center for Organizational Reforms and Development, Inc. v. Zamora, 459 SCRA 578 (2005), the Supreme Court ruled that the setting aside of a portion of the IRA by the executive or the legislative departments of government is unconstitutional.
Clearly, the national government erred in not releasing this fund to the local governments which amounted to P 20 billion in the two years. It owes the city government of Davao P 207 million. I know of a number of banks that offer to double your money in five years. This could have amounted to over P 400 million by now!
Nyet. Well, that’s wishful thinking.
The national government allegedly has no money and so it cannot pay its debt to the local governments. But in the meantime, it continues to lick the asses of foreign creditor banks by automatically appropriating debt service under the national budget. As much as 40 percent of the national budget goes to debt service payments.
But money for local governments, nyet!
So, to pay for this withheld sum, the national government is embarking on a miracle. It is called the Monetization of IRA Collectibles for Local Empowerment (MIRACLE). Under this scheme local governments have the option to get their money from government designated trustee banks at a discounted value of 70 percent or get it in seven equal annual installments over the next seven years starting next year.
Well, this looks to me like highway robbery than a miracle.
Imagine our just share of the taxes withheld from us for over five years and now they plan to release it to us at either a discount or in installment!
What a miracle! We’re being robbed twice over!
This article was originally posted in the blog of Davao City First District Councilor Peter Laviña. Laviña also submitted this for his column at the Mindanao Times.
PhP 51.48 : $1
Here’s another something to smile about: the peso is getting stronger. Last Friday, February 10, 2006, it closed at PhP 51.48 to a dollar.
Despite the chaos, tragedies and political instability, the Philippine peso has somehow managed to stay afloat. The problem now is how to keep it afloat. Hopefully, it will only get stronger against the dollar.
Development
President Gloria Macapagal-Arroyo is said to be gloating that RA 9337 or Reformed VAT is yielding “positive” results for the country’s economy. Fuel prices are down, the peso is up. I must concede that the economy is looking good.
But are the lives of Filipinos doing better??? I doubt it. (more…)
28 years old from Davao City, blogging since 2004. :)
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