Posts tagged with social services

The past weeks saw various protests against the impending hikes on train fares in Metro Manila, aggravated by the simultaneous hikes in other transport services, from toll rates to taxi fares, and hikes in basic commodities, from fuel to milk, to bread. Public utilities (controlled by private companies) are also set to increase their rates in electricity and water. In the next few weeks, schools are seen to propose increases in tuition and other fees, as they do annually this time of the year. All these hikes are under the willing sanction of the government, in the name of free market dogma and hypocrisy of neoliberal economics.

On the other hand, while the government accommodates all attempts at raising prices of services and commodities, it is adamant at insisting that wage increase is untimely thereby forcing millions of Filipino families against the wall as they cope and make do with their meager wages. With rising prices of commodities and services, the cost of daily living in Metro Manila is expected to breach the P1,000.00 per family (of six) per day threshold, while the minimum wage remains stunted at P404.00, often violated by profit-hungry businesses with the exceptions granted by the government. If you’ve heard about the death of the ten construction workers in Makati, you also ought to know that they were reportedly only being paid P260.00 a day. Watch this case study made by GMA 7″²s Saksi of a gasoline boy who earns P7,700 a month but has to spend an additional P700 if the hike on train fare continues jacking up his monthly expenses to P8,800. Hindi ko alam saan niya kukunin ang kulang. Wala pa diyan ang ibang price hikes.

Notwithstanding the legitimate grievances of small and medium enterprises, big businesses controlled by multinational and local tycoons and landlords are feigning imagined and prospective losses in order to justify their unreasonable refusal to any proposal to increase wages. At the same time, however, you see them posting record profits and reporting billions of pesos in overseas investments in business papers. Government even claimed that the economy grew by more than 7% last year. Business is booming, but ah, how odd, isn’t it hunger incidence is on the rise. It is a fact, in the present order, everything is in the interest of capital, everything is laid on the altar of free market economics and profit. There’s a reason minimum wage is minimum. Workers’ share in the wealth of an industry is kept to the barest minimum, an amount enough to keep a worker in threshold of survival, just enough to make him survive a for a day to be able to go back to work the next. There’s a reason wage is called “˜sahod’ in Filipino. Sumasahod lang ang manggagawa sa kung ano nag matitirang mumo while profiteers feast on the wealth that the workers have created.

As with any situation, the government is supposed to balance the interests of all parties concerned. In this kind of situation, however, where balancing of interests will inevitably lead to the irreconcilable contradiction between public service and private profit, the choice of a genuinely pro-people government should be clear. Ordinary people have unjustly been compromised long enough.

NUSP President Einsten Recedes

More than a dozen members of the National Union of Students of the Philippines conducted a lightning rally inside the session hall of Batasang Pambansa to protest the proposed budget cuts of the Aquino administration against state universities and colleges. Outside Batasan, dozens more held a rally to urge Congress to reject the budget cuts, not only on state schools, but on other social services of the government, and rechannel non-productive yet monstrous spending on the military, on debt-servicing and on patronage dole-outs.

NUSP President Einsten Recedes NUSP President Einsten Recedes NUSP President Einsten Recedes Students protest outside Congress against budget cuts Students protest outside Congress against budget cuts Kabataan Party-List Secretary General Vencer Crisostomo Session Hall, Batasang Pambansa

Here are some photos from the walk-out protest of thousands of students and out of school youth last Friday, September 24, in Metro Manila in collective rejection of the Aquino administration’s proposed budget cuts on state universities and other social services.

Student protesters held a short program at historic Plaza Miranda to condemn the proposed budget cuts on state universities which would surely result in tuition and other fee increases in campuses nationwide

In a symbolic expression of outrage, student demonstrators burned an effigy of President Noynoy Aquino whom they called Noynoy the Slasher for cutting the budgets of state universities nationwide. It was the first time an effigy of the new President was burned in a protest rally during his term

Kabataan Party-List Rep. Mong Palatino and National Union of Students of the Philippines Secretary General Ipay Bolibol lead the march of the students, along with other student leaders from state universities in Metro Manila

From Plaza Miranda, the thousands of students who joined the protest marched towards Malacanang Palace through Quezon Boulevard

Thousands of students marched last Friday, September 24, from Plaza Miranda in Quiapo, Manila to Mendiola Bridge at the gates of Malacanang Palace, passing through the Quezon Boulevard Underpass

The past weeks saw pockets of protest in various parts of the country that lead to the massive walk-out of students nationwide to protest against the Aquino administration’s proposed budget cuts on state universities and other social services. The proposed budget for state universities next year is more then P400 million less than this year’s budget. When computed against a constant consumer price index and the increasing number of enrollees in state universities, next year’s state universities’ budget would be the lowest in per-student spending in state universities in more than a decade.

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President Benigno "Noynoy" Aquino III (photo from www.gov.ph)

The Aquino Administration submitted its budget proposal for 2011 to Congress this week. It is through the budget where one can see the priorities of the government, in how much it intends to spend on various programs of government. For 2011, the government under the Aquino administration intends to spend P1.645 trillion.

In his budget message, the President claimed that the spending proposal of the government for next year is anchored on “reform”. The budget claims to have a “bias to the poor and the vulnerable”. However, right at the onset, it is still oriented towards severe austerity, masked with the euphemism “fiscal responsibility,” a government spending orientation that has been the standard policy for decades. It is a policy intended not to simply ensure that the “meager resources” of the government are spent wisely for the people, to ensure that the government is able to pay its foreign and local creditors its monstrous, anomalous and scandalous debt.

Just to show you how scandalous and hypocritical the government’s budget orientation is, the Aquino Administration proposes to pay foreign creditors and financial institutions a whopping P823.27 billion next year (P357.09 billion in interest payments, P466.18 billion in principal amortization not formally included in the P1.645 trillion total budget). According to the initial budget analysis and report of IBON Foundation, the increase in interest payments alone “is the largest absolute increase in interest payments in the country’s history and, at a 29.2% increase from the year before, is the second largest percentage increase after the 32.6% growth in 2000.”

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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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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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