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Saturday, November 12, 2005
RVAT perks up economy, but not another impeachment - economist
The country’s economy is already on its way to recovery and stability because of the government’s implementation of Republic Act 9337 or the Reformed Value-Added Tax (RVAT), according to an economist.
But the recovery would definitely be stalled if the opposition would pursue its plan to lodge another impeachment case against President Arroyo next year, economist and former national treasurer Sergio Edeza said.
Break
“The country’s unstable political climate worries me. If there will be an impeachment case again against the President next year, this will break all positive forecasts, as investors will again become jittery” he said during an economic briefing organized by the Money Market Association of the Philippines-Cebu at the City Sports Club on Thursday.
A few days after the implementation of the RVAT on Nov. 1, the peso became stronger, achieving a near five-month high, from an average of P56 against the dollar. As of yesterday, the peso’s weighted average was at 54.52 against the dollar.
The stock market’s composite index also surged in response to the implementation of the RVAT, which is seen to generate additional revenue equivalent to 2.5 percent of the projected gross domestic product for 2005, with the end view of accelerating the balancing of the National Government budget possibly by 2008.
Confidence
Edeza said the strengthening of the peso against the dollar and the improvement in the stock market are indications of investors’ confidence in the country.
He expressed hope that the opposition would reconsider its plan of filing an impeachment case against President Arroyo for the good of the entire country.
The Philippine Constitution allows any person to file an impeachment case against the President. But only one case every year will be considered and investigated for substance. (JBN)
(November 12, 2005 issue)
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