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Business

Inefficient use of government funds

EYES WIDE OPEN - Iris Gonzales - The Philippine Star

It was one of those days. The gasoline station between the entrance of a posh village and a church along Katipunan Avenue was bursting at the seams over the weekend.

Motorists were in a mad scramble to have their car tanks filled. There was a long queue and the gasoline boys just couldn’t cope with the demand. It’s not surprising. It’s usually the scenario when pump prices are about to go up.

Pump prices are expected to increase by about 70 to 80 centavos per liter this week because of the increase in global crude prices and additional excise taxes on fuel.

The second excise tax hike from by the Tax Reform for Acceleration and Inclusion (TRAIN) Law adds P2 per liter for gas, P1 per liter for kerosene, P2 per liter of diesel, and P1 per kilogram for cooking gas.

Taxes, taxes, taxes

Last year, similar tax hikes welcomed Filipinos at the start of 2018.

We all know that taxes are inevitable. Who was it who said that death and taxes are the only things certain in life?

On the practical side, it’s the only way the government can function.

But the question that’s really begging for an answer is this: Are the three branches of government really functioning the way they should?

The answer is a resounding no, especially when we see taxpayers’ money wasted on whimsical projects funded by our lawmakers’ discretionary funds or on Metro Manila roads that are filled with cracks and potholes.

There’s so much more. Indeed, it seems that the list of inefficient use of government funds is growing.

At the end of the day, this is what’s happening — on the one hand, Filipinos are being slapped with more taxes, but at the same time there is so much mishandling of funds and inefficient spending.

It seems the executive and legislative branches are trying to outdo each other in raising taxes, but at the same time mishandling funds. Should I add stealing, too?

Populist measures

The P8 billion free tuition law is an example of inefficient use of government funds. It’s a populist legislation, but we should know by now that what is popular is not necessarily right.

The free college tuition law could threaten our budgetary capacity if it hasn’t done so and gives even those who can very much afford to pay, a free pass. What the government should have institutionalised is a socialised tuition scheme.

Someday, when we are a more developed nation with stronger financial muscle, maybe it can work, but not now when the government is still scratching its head and looking for ways to raise funds.

There are many more populist measures pending in Congress and they really sound good, but remember there’s no such thing as a free lunch. Just ask the Venezuelans.

At the end of the day, all these populist measures will just be charged on us through the growing list of indirect taxes slapped on us and it won’t be easy.

Airport chaos (one more time)

(Apologies to readers because this part of my column last week was truncated due to a technical error. Here it is).

Reacting to my column on the airport chaos during the Christmas season, a reader said it’s chaos the whole year round.

He said that at the Ninoy Aquino International Airport, part of the problem has a lot to do with terminals located far apart from each other and with no efficient transportation between them.

“Last year, the bus dropped us off at a secure door of Terminal 2. This year, going to Terminal 3, we had to go through security again. Door security is not prepared. There is a need for more scanners. Waiting outside is absurd. The idea of one bus an hour fits right in with Sec. (Art) Tugade’s vision – horrible. The buses are old and service is inadequate. The waiting area is outside with all the heat, humidity and exhaust. And of course, nearly every flight is late. The previous secretaries of the transportation department did nothing to improve the situation,” the reader said.

On the different airport proposals, he said nothing is happening just yet.

“Why on earth do Filipinos put up with such horrible ‘service?’ This horrid service level is in nearly every department. Presidents are asleep,” the reader said in his letter.

It’s unfortunate really, but I hope 2019 will be better for our country and for all of us. It’s another year to make it right.

Iris Gonzales’ email address is [email protected]. Follow her on Twitter @eyesgonzales.

GASOLINE STATION

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