• DOF SEC. DOMINGUEZ RESTATES GOVT SPENDING POLICY

    ‘Poverty reduction best way to fight insurgency’

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    THE government will pursue a new policy for public spending and putting an end to insurgency according to Fi-nance Secretary Carlos Dominguez 3rd said.

    Instead of wasting resources fighting insurgencies the government will offer targeted subsides to poor families to help them out of poverty and thereby making them less vulnerable to the influence of rebels and criminal elements, he told a recent weekly breakfast forum.

    As poverty is at the root of many problems, the government will focus on social protection programs and human capital development along with massive infrastructure building.

    Abject poverty, he said, has denied people the opportunity to build better lives, which, in turn, has created breeding grounds for insurgents and criminal elements.

    Discussing the income disparity across the country, Dominguez pointed out that in places like the Autonomous Region in Muslim Mindanao (ARRM) the gross national income of individuals is only 6 percent of what Metro Manila resident are getting.

    Citing Department of Finance data, Dominguez said the per-capita gross regional domestic product (GRDP) for
    2015 in the National Capital Region (NCR) was P398,985 at current prices. It was the country’s highest. Other regions like Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon region), reported per-capita GRDP of P145,859 and the Cordillera Administrative Region (CAR), P131,110, both for 2015

    In contrast, GRDP of ARMM is only P26,757, the country’s lowest at current prices.

    “That’s why we have conflict there, because they have no other opportunity for better agriculture; they have no other opportunity,” he said.

    “So what do they do? Because they don’t have it, they don’t have better education, they go into rebellion and the people in Manila have to spend a tremendous amount of time and money to suppress those rebellions,” Dominguez pointed out.

    “That is a crazy way of doing things,” he note d and added, “We might as well invest a lot of money there [ARMM] to improve their livelihood because, first of all, we owe it to them.”
    “It is fair and . . . it cost us less in the long run,” he said.

    The tax reform package that the government’s economic team has presented to Congress aims to raise sufficient revenue for programs meant to bridge the chronic income gap between Metro Manila and the other regions, according to DOF spokesperson Paola Alvarez. The aim, she said, is to cut the poverty rate by 1.5 percent per year and bring it down from the current 26 percent to 17 percent by 2022, the final year of President Duterte’s six-year term.

    “The government will do more to help the regions that are lagging behind in terms of development. We need to reinvigorate the economy in areas outside NCR by increasing spending on badly-needed infrastructure and social protection programs outside the Greater Manila area,” Alvarez said.

    Under spending, which in the past has hampered the implementation of social protection programs for the poor, she stressed, would be a “thing of the past.”

    This administration, she said, would make the right investments to raise the skills of our labor force, create jobs, stimulate the economy and improve the quality of life of the poorest of the poor.”

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    3 Comments

    1. As poverty is at the root of many problems, the government will focus on social protection programs and human capital development along with massive infrastructure building. Abject poverty, he said, has denied people the opportunity to build better lives, which, in turn, has created breeding grounds for insurgents and criminal elements.

      Discussing the income disparity across the country, Dominguez pointed out that in places like the Autonomous Region in Muslim Mindanao (ARRM) the gross national income of individuals is only 6 percent of what Metro Manila resident are getting. In contrast, GRDP of ARMM is only P26,757, the country’s lowest at current prices.

      “That’s why we have conflict there, because they have no other opportunity for better agriculture; they have no other opportunity,” he said.

      “So what do they do? Because they don’t have it, they don’t have better education, they go into rebellion and the people in Manila have to spend a tremendous amount of time and money to suppress those rebellions,” Dominguez pointed out.

      “That is a crazy way of doing things,” he note d and added, “We might as well invest a lot of money there [ARMM] to improve their livelihood because, first of all, we owe it to them.”
      “It is fair and . . . it cost us less in the long run,” he said.

      Agree on this but let’s revisit ARRM:

      The ARMM region is in the southern part of the Philippines. It is listed here as one of the 18 regions of the Philippines. However, this region is autonomous and governs itself and not by the Philippine government. The Department of Interior and Local Government (DILG) (who “Assist the President in the exercise of general supervision over local governments”)has no power over the ARMM. It has 5 provinces, 2 cities, 116 municipalities, and 2,490 barangays.

      As an Autonomous Region, they govern themselves but the Phil Gov’t is also providing funds for them. Let’s revisit the budget given to them in the past several years. How well did they spent the budget? Take an inventory of all the support given to ARRM..visit these ARRM provinces and cities and compare them with the other provinces and cities in Mindanao and true enough the less developed areas are in the AUTONOMOUS REGION. With all the support and the situation they are in, maybe time to ask if they are capable of governing itself

    2. Pres. Duterte is already at it by reducing the number of greedy narco personalities who keep enriching themselves at the expense of everybody more so the poor, support the Pres.

    3. this is nothing new. its just being neglected by the past administrations. But this will fast tract under federalism because each state and cities have some form of autonomy in almost everything in governance. from policies to budget and programs. why do you think we have been this poor and backward for the last 60 yrs ? thats because of our unitary system that only develops Luzon.