Noy wants RP to be at par with neighbors

MANILA, Philippines – The administration of President Aquino wants the country’s economy to be at par with its Asian neighbors at least before he steps down in June 2016.

This was made clear by his economic managers who prepared the proposed national budget for 2011, who all want to “bring down the deficit to manageable levels over the medium term,” without resorting to the imposition of additional taxes to the public.

In a report, Budget Secretary Florencio Abad said the government declared its intent to “improve the tax administration and rationalizing the revenue structure.”

With this, the country’s economy – which is largely dependent on dollar-remittances of some eight million overseas Filipino workers – will be resuscitated, thus strengthening the peso, thereby increasing the people’s buying power.

The main objective is to “bring the spending levels for infrastructure, education and health to more respectable levels comparable with other Asian countries,” particularly in the social, economic and governance sectors to meet the Millennium Development Goal targets.

The Aquino government likewise wanted to increase its tax collection revenues from the current 13 percent, to 15 percent (as ratio to GDP) by 2011 and step it up further to 20.2 percent of gross domestic product in 2016.

“Revenues supported by measures to raise collection efficiency will rise from 15.6 percent in 2011 to 20.2 percent of GDP in 2016, as disbursements will likewise increase from 19.5 percent of GDP in 2010 to 22.2 percent in 2016,” the DBM projected.

As a starting point, President Aquino wanted his administration to at least reach the 17 percent tax collection rate of former President Ramos, so that programs for the poor would trickle down, amid a limited government funding problem.

This target is attainable, as it would only be four notches higher than the current 13 percent tax collection rate that he inherited from former president and now Pampanga Rep. Gloria Macapagal-Arroyo.

“Kung nagawa ninyo na ito noon, magagawa niyo ulit ito ngayon. Naniniwala ako na ang mga tulad ninyo na nagsisilbi sa gobyerno ay likas na tapat at mahusay sa trabaho,” Mr. Aquino told officials and employees of the Bureau of Internal Revenue.

He also called on the BIR, through the leadership of Commissioner Kim Henares, to make good her promise to him to increase tax revenues, which the BIR chief herself admitted as a “conservative estimate.”

Mr. Aquino in turn vowed to help the BIR leadership reach its collection target of P860 billion for this year, or a P30 billion augmentation from revenues generated last year (2009).

He expressed optimism that the BIR could achieve its P860 billion revenue target for 2010, even as the administration tries to cope with a budget deficit, which could run up to about P320 billion by yearend.

The Chief Executive reiterated his directive to the BIR to intensify its implementation of the Run After Tax Evaders Program, which includes the criminal prosecution of erring businesses and individuals.

Mr. Aquino, A former three-term Tarlac congressman and senator likened the imposition of additional taxes to a leaking pail that is full of water, where no amount of water can fill it up because the water only keeps on flowing, courtesy of the leakage.

“We have to plug the leakages,” he insisted. This can be done with the appointment of leaders with integrity and whose character is beyond reproach, filling up straightforward commissioners of the BIR and Customs, among others. –Delon Porcalla (The Philippine Star)