DOF: Pension hike, freeze on land conversion could derail pro-poor programs

MANILA, Philippines -- The Department of Finance warned on Friday of "disastrous" consequences if populist measures on a two-year land conversion moratorium and Social Security System pension increase without contribution hike are pursued.

"We need to invest big in (infrastructure), human capital and social protection...Hence the need to generate a lot more funds to bankroll these pro-poor and pro-growth programs," Finance spokesperson Paola Alvarez said in a statement.

"The government certainly cannot do so if the president's economic team were to support populist proposals willy-nilly just to earn political pogi points for the Duterte administration," Alvarez, PDP-Laban spokesperson during the 2016 election campaign, added. 

Revenues, in particular, will take a hit as taxpayers may be forced to fund the proposed P2,000 increase in SSS pensions without corresponding adjustment in members' contributions. 

Meanwhile, Alvarez said, preventing the development of farm lands for better use, "would undermine the growth momentum."

The statement came after activist group Bayan Muna criticized the economic managers for allegedly feeding President Duterte wrong information on the SSS plan, which was part of Duterte's campaign promise.

They remarked these were the same officials that opposed the proposed land conversion moratorium for two years by the Agrarian Reform Secretary Rafael Mariano, himself a leftist leader prior to entering the Cabinet.

The government's economic team includes the DOF, the Department of Budget and Management and the National Economic and Development Authority.

Alvarez said all policy recommendations to Malacañang are studied carefully.

"(These) are anchored on sustaining high growth and enabling all sectors across all regions to benefit from it in the form of more jobs, higher incomes and better living standards," she said.

Citing the government's 10-point socioeconomic agenda, Alvarez said big-ticket projects nationwide would need "more, not less, funds" which will not be attained with the two proposed measures.

Without more revenues, the Duterte administration could end up doing a "disservice" to the public, she said.

The contentious SSS pension increase was vetoed by President Benigno Aquino III, who suffered a political fallout for asking for a contribution increase in exchange.

Duterte, during his campaign, promised to pursue the measure, only to backtrack later on upon the advice of his economic managers. Budget Secretary Benjamin Diokno explained that candidate Duterte is "different" from President Duterte.

Vice President Leni Robredo, who was head of the Housing and Urban Development Coordinating Council for a few months, earlier also opposed the moratorium on land conversion as this could hamper the government's housing program. 

"To pander to short-term populist initiatives will be a disservice to the president and the overwhelming majority of Filipinos who have given him the electoral mandate to effect real change," Alvarez said.