(Published in its print version on August 3-9 2024)
TAXES are the lifeblood of the nation. As one law book author said, “it (tax) is what we pay for a civilized society. Its prompt and certain availability is an imperious need.”
When Budget and Management Secretary Amenah Pangandaman visited Cagayan recently, she admitted that the economy is still par on its normal, short of admitting that the economy of the Philippines is struggling. She, however, believed that the country can survive.
The World Bank has been reporting that about fifth of our annual national budget is lost to corruption so there is a need to scrutinize how the government spends taxpayers’ money.
The Philippine government’s budget deficit for 2024 is projected to be P 1.36 trillion ($24 billion), or 5.1 percent of GDP1234. This represents a narrowing of the deficit compared to previous years, government finance records showed.
Secretary Pangandaman announced that the proposed national budget for Fiscal Year 2025 is set at Php 6.352 trillion.
Unfortunately, the budget for basic services to the people has been minimal, as usual. The share of the defense is usually higher than the increases in education and health. Proposed public infrastructure funding has been also been plummeting.
The significant reduction, as the House appropriations committee members noted in the past, might create a negative impact to the economy.The Marcos administration will definitely be faced with the challenge of sustaining growth despite a meager budget.
If Pangandaman is to be believed, there must be an efficient tax collection and balanced government expenditures to curb the country’s fiscal deficit.
Hence, there is a vital need to increase accountability by making spending more transparent.
Furthermore, there must be enough funds where it needed most—that is for social services such as education and health.#
