Posts tagged with government budget

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September 22, 2009

Budget cut in SUC’s means added burden to students

As the national government continues to cut down spending on the country’s 110 state universities and colleges (SUCs), students carry the burden of the steep cost of higher education, Kabataan Party-list Representative Raymond “Mong” Palatino said.

In the proposed national budget for 2010, allocation for SUCs will be slashed by 13 percent or a whopping P3.2 billion, thus forcing SUCs to generate income mostly from students.

Based on the 2010 National Expenditure Program, bulk of SUCs’ projected income of P10.2 billion will be sourced from tuition fees (P4.59 Billion) and other income from students (2.23 billion).

Palatino said “SUCs are being forced to rely less on government subsidy and more on internally-generated income in the form of tuition and other fees and privatization of assets. Unfortunately, the burden of financing tertiary education is placed on Filipino students, many of whom will be unable to afford it,” Palatino said.

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September 21, 2009

Budgets, budgets

The past week had been spent largely reading through the 2010 budget proposals of the government and its various departments and agencies. It can get frustrating and confusing, for someone who’s not used to reading accounting sheets and pages full of numbers. After a few days of flipping through the pages and scrutinizing the items, one will eventually get used to it. It is imperative, too, to look at the budget figures over the past years and at government policy declarations, to track the trend of government priorities as reflected in the money it is willing to spend on certain services and projects.

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September 19, 2009

State abandonment of higher education

This table shows the share of state subsidy and internally-generated income in state universities and colleges’ (SUC) total operating budget through the years. What is evident is that SUC’s are being forced to rely less and less on government subsidy and more and more on internally-generated income (in the form of tuition and other student fees, privatization of assets, etc.).

One sector which has always suffered from the government’s policy of contracting spending for social services in favor of continued debt servicing is the sector of higher education. When I was still in UP, I had friends who abhorred militant activists and the “leftist” slogans. One of the state policies they continuously deny is existing is “state abandonment of education.”

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Contracting social services, taxing the people dry

It has always been a priority for the Arroyo administration to “balance the budget”””meaning, to decrease the gap between government revenues and government spending.

In plain reading, this is good. Trimming the budget deficit should mean less borrowing, and eventually more money for health, education and other social services. However, the goal of balancing the budget under the Arroyo administration, and even before, has always been to ensure the payment of our debt obligations, unfortunately at the expense of social services spending.

To make matters for ordinary citizens worse, in order to balance the budget and earn more revenues, the government, for years, has always put a stress on consumer taxes (E-VAT, sin taxes, proposed text tax) instead of directly taxing corporations and high-income tycoons, instead of taxing imports or plugging the leaks from corruption. In the age of trade liberalization and globalization, government would rather give rich foreign investors, high-income tycoons and importers tariff cuts, tax holidays and other tax incentives.

Aside from taxing the consumer, government has also been selling its assets and privatizing services and public utilities in an effort to hide its poor and lopsided tax effort. This results to private companies concerned largely with profit and not with public service controlling public utilities. Thus, the high power and water rates we experience.

When corruption and smuggling comes into the picture, we arrive at the terrible fiscal decay we find ourselves in. Ordinary people are being taxed dry, and yet social services are continuously deteriorating, and despite all these, our debt just keeps growing and growing.

Below are some graphs that would illustrate the trend of the government in its budget proposals for the past years.

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