A POLITICAL think thank hits President Benigno “Noynoy” Aquino III for not prioritizing social and economic welfare programs in the proposed P1.645-trillion budget for 2011.
Ibon Foundation noted that the Aquino administration has backpedalled in its promise in providing basic social services by setting aside P357.1 billion for interest payments alone.
Ibon said that even if the budget was increased by 6.8 percent from last year’s P1.541 trillion, the government’s plan to increase allocation for interest payment defeated the purpose in addressing gaps in social services for the poor.
“This is the largest absolute increase in interest payments in the country’s history and, at a 29.2 percent increase from the year before, is the second largest percentage increase after the 32.6 percent growth in 2000,” it said.
The group noticed the budget cuts in the following sectors: agriculture and agrarian reform (falling by P23.1 billion or 26 percent), communication, roads and other transportation (P7.9 billion or 5.2 percent), water resources development and flood control (P4 billion or 21.4 percent), and power and energy (P3.4 billion or 65.5 percent).
Ibon also noted a 3.5 percent decrease in the budget for health, from this year’s P40 billion to P38.6 billion.
The government however countered that the proposed allocation gives P2.5 billion for expanded immunization program, P5.7 billion for maternal and child-care facilities and P1.5 billion for potable water supply in waterless communities.
“This creates the justification for the further privatization of critical public infrastructure, even as diminishing government engagement undermines its capacity to regulate,” Ibon said.
Earlier, the Department of Finance (DOF) sets P322.2 billion for capital outlay, or 3.6 percent of gross domestic product, for 2011 as compared to this year’s P318.2 billion or 3.8 percent.
Infrastructure spending was set at P249.7 billion, or 2.8 percent of GDP for 2011, from this year’s P247.8 billion or 3 percent of GDP.
Meantime, the group welcomed the P31.1-billion or 12.9 percent increase in the education budget, which the government said will be used for the construction of new school buildings, purchase some 32.3 million textbooks, hiring of 10,000 teachers, scholarship programs, among others.
The 2011 budget allocated P206.3 billion for basic education from this year’s P172.9 billion, which the National Union of Students of the Philippines (NUSP) said is P100 billion short of what is needed to address the current problems.
With this, Ibon urged the government to put in place a “progressive revenue system” that taxes the rich and direct spending to the poor.
“In the absence of this, its debt will continue to rise and its budgets will fail to meet the people’s real immediate and long-term needs,” the think thank said.
The Aquino administration targets a lower budget deficit on 2011 at P290 billion or 3.2 percent of GDP from the projected P325 billion this year as it pointed out the plugging of tax leaks and revenues from public-private partnerships as ways to rein in the deficit.
Earlier, House Appropriations committee chairman Joseph Emilio Abaya (first district, Cavite) said they will hold budget hearings starting September 1. (Virgil Lopez/Sunnex)