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Wednesday, December 21, 2005
Oledan: Sluggish
By Radzini Oledan
Slice Of Life
TALK about sustainable decline in economic growth, a record high of disenchantment and lack of trust with the present leadership, morale at an all time low.
Incompetent leaders run the country with majority of the populace cynical at the move of politicians, each fending for their own survival.
Economic analysts have pointed out the poor performance in agriculture, high oil prices, and political turmoil as the reason for the sustained slow down in our economic growth.
Good thing that we have the overseas Filipinos whose expected remittances of $10.3B by year-end was able to keep the economy afloat.
The economy is heavily dependent on remittances from overseas Filipino workers (OFWs) to increase the country's income from abroad and its much-needed dollar reserves, push consumer spending and stimulate growth.
The export of labor has now become an important vehicle for the economy. Without such policy, the economy cannot survive.
Poverty incidence is at 24.3 percent, according to the National Statistical and Coordination Board (NSCB).
This is based on a very low P33.60 per day poverty level, which is not even enough to provide a person with three meals a day.
Around 90 percent of the population lives on around P165 or $3 dollars a day. The poverty threshold for a family of six is at P479.06 ($9.05). And yet the minimum wage is pegged at P250 ($4.71) per day and the government refuses the demand for a P125 across-the-board increase to provide immediate relief to workers and employees.
Inflation is at 7.1 percent. The purchasing power of the peso has dropped to P.56 ($.01) based on 1994 prices. The prices of basic utilities such as water and electricity have also increased.
Unemployment and underemployment, according to the Department of Labor is at 7.4 percent and 21.2 percent representing 2.6 million and 7 million workers respectively.
There is no gain but an increasing National Government debt of P4.02 trillion of which P 1.87 trillion or 47 percent are owed to foreign creditors while P2.15 trillion or 53 percent from domestic lenders.
In addition, the government provided fiscal and tax incentives and exemptions to foreign investors and lost annual revenues of around P170.8 billion. To compensate for the revenue loss, it raised the tax burden of the people by implementing the expanded value-added tax.
The proposed P1.053 trillion expenditure program next year is claimed by the national government as "a potent weapon for the permanent upliftment of the large mass of our people from poverty."
While it is P134.6 billion more than the 2005 budget, which could mean increased government resources going towards the people's welfare.
However, the increasing population growth has also cut into per capita spending. Compared to 2001 levels, real spending in 2006 on education will be 4.5 percent lower and on health 19.2 percent lower.
The Department of Education (DepEd) per capita budget per public school student has fallen from P6,007 per enrollee in 2001 to P4,782 per enrollee in 2006, or a 20 percent decrease.
The DepEd also estimates that there will be a need for an additional 10,549 classrooms, 1.2 million chairs, 67 million textbooks, and 12,131 teachers in 2006, which they already foresee will not be met by the 2006 budget.
All indicators signal a worsening state of economy next year. It's a sluggish economy because of the mis-prioritization of the national government officials whose purpose in holding office is far-off from their avowed duty to uphold public interest.
For Bisaya stories from Davao. Click here. (December 21, 2005 issue)
Write letter to the editor.Click here.
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