For one thing, the proposed P725-billion budget may not have taken into account the abrupt drop in the forex rate to P50 and potentially, even as low as the mid to high 50s in the wake of the Erap impeachment crisis. Since the government is heavily indebted to foreign creditors, servicing that gargantuan debt burden has become heavier in peso terms.
Then there is the matter of rising local interest rates, as the Bangko Sentral tried to defend the peso against the dollar. That means, servicing the government’s local debts has also increased correspondingly. And since debt service payments are mandatory, the funds available for Congress to appropriate have been drastically reduced.
Congress must also take into account the ODA funding we may have to forego because we do not have the means to provide for our counterpart fund. And complicating our problems even more is the reality that the Bureau of Internal Revenue will not be able to meet the ambitious collection target assumed in the budget proposal. Business is bad and that means many business enterprises will lose money or make very little profits. Since tax collections are imposed on profits, what will the BIR collect?
In the past, the Department of Finance just borrowed abroad to fund budget deficits. But with the downgrading of the country’s creditworthiness by international rating agencies, this option will now be very expensive if it is open at all. Borrowing locally means government will compete with local business for limited credit facilities here. That will raise interest rates further and snuff out any recovery hopes in the near term.
Next year is one big headache for whoever will be in Malacañang. Really makes me wonder why Erap is fighting for the dubious honor of presiding over a crisis of unknown severity. If he had any gray matter between his ears, he would resign now and take a crack at being a hero. That’s better than the certainty of following Marcos into the dustbin of history.
Thus far, we know that Nene returned it. Did the other senators spend the money for their own personal account? Or did they use it to fund their favorite charitable projects? Or did they use it as part of a revolving fund to help citizens who come to them for assistance?
Furthermore, I wonder if the other senators can liquidate that P200,000 if only to show that they didn’t profit from it. As it is, Nene’s revelation puts a cloud on all of them.
"Prices of prescription drugs of multinational companies are extremely expensive, on or off patent.
"It may shock you to know that while prices of drugs imported from India are very low compared to their domestic counterparts of the same multinational companies, their counterparts (off patent) by Filipino companies (brand and generics) of the same quality are the same price or even lower than that of Indian imports.
"Frankly speaking there is no need for these Indian imports if our Department of Health and Philippine Medical Association will endorse Filipino made drugs and medicines.
"Technical people of Filipino companies are highly qualified some coming from domestic multinational companies."
The points raised by Mr. De los Reyes are well taken. However, the problem with local drug manufacturers is perception of quality. The bad perception may not be justified but they have not done anything to change that perception. Somehow, the public retains this image of fly-by-night Filipino drug companies who exist only to sell overpriced substandard drugs to the DOH.
The chamber of which Mr. De los Reyes is an officer, should take more proactive moves to counter this bad image. They must also make it easier for people to buy their products. Unfortunately, Mercury Drug is in partnership with the foreign multinationals making its extensive network virtually unavailable for the Filipino drug makers.
I have no doubts that there are reputable local drug manufacturers. My late father who was a doctor, used the generic products of local manufacturers with good results. But you have to go out of your way to buy these products.
Maybe the chamber can pool resources to rent space in the major shopping malls for a botica dedicated to the selling of the products of its members. If they are easily available and given the hard times, the patients themselves will tell their doctors to prescribe the generics. This will be better for the patients who will be able to afford taking the full course of a generic antibiotic rather than just a few doses of the multinational variety.
The chamber can then convince the trade and health departments that they can do better than India. But first things first. Prove your quality. Improve your reputation. Make your products more easily available. Success will surely follow.
President Joseph Estrada visits an elementary school. One of the classes is discussing words and their meanings. The teacher asks the President if he would like to lead in the discussion of the word "tragedy." So Erap asks the class for an example of a "tragedy."
LITTLE GIRL: "If my best friend is playing in the street and a car comes along and runs him over, that would be a tragedy."
ERAP: "No, that would be an accident."
LITTLE GIRL: "If a school bus carrying 50 children drove off a cliff, killing everyone, that would be a tragedy."
ERAP: "I’m afraid not. That’s what we would call a GREAT LOSS."
LITTLE JUAN: "If the presidential plane carrying the President and his Cabinet crashed shortly after take-off, killing everyone on board, that would be a tragedy."
ERAP: "Fantastic! That’s right. And you can tell me WHY that would be a tragedy?"
LITTLE JUAN: "Well, because it wouldn’t be an accident, and it certainly would not be a great loss."
(Boo Chanco’s e-mail address is bchanco@bayantel.com.ph)