Whose Subsidizing Who in the Philippine Economy

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By onlinecashdigest

MRT Fare Increase

President Noynoy Aquino of the Philippines justified the MRT fare increase and other such increases in transportation infrastructures by saying that the government is no longer subsidizing the cost of running light rail transits in Metro Manila.  He further said that such a move is equitable because it is not fare to people in other parts of the country to subsidize transportations in Luzon through government taxes because they are not the ones utilizing it.

I believe such a statement maybe true in some way! But and with a big but!!! 

Isn't that the government is also subsidizing poor provinces in the Philippines, most of them in Mindanao with budgets coming from the national government. 

In fact everyone is receiving a subsidy from each one in some way.

And Mindanao is the biggest recipient of subsidy money from the National Government.

Some provinces in Mindanao received a lot of money from the National Government and a large chunk of that money found its way into the pockets of politicians and was used to buy guns for their private armies.

SLEX and NLEX Toll Increase

This is one of the hardest thing to swallow. A 300% increase in toll rates justified by the government by saying that the investors should recover their cost. Why in the first place did the government not build the expressway with government money, is it not the job of the government to provide roads.

They have already invented the ROAD USERS TAX from out of nowhere. Where is that money now?  It has earned the government billions.

Even the Bureau of Internal Revenue tried to tax the toll fares with value added tax. Such stupidity, why would you tax something that should be provided by the government in the first place.

Everything Has Increased

We have welcomed the New Year's Eve for 2011 with a bang bang of INCREASES!

SLEX TOLL

NLEX TOLL

SCTEX TOLL

MRT FARE

LRT FARE

All in the name of removing subsidies. Of course, the President and government officials in HIGH POSITION would not feel this increases. They ride government issued cars funded by tax money. Who the hell care about the increases?

Only the lowly Juan Dela Cruz would feel the increase.

If we want to restructure the financing system, let us also include the PORK BARRELS of Senators and Congressman. Let the National Government consolidate planning of infra and social projects.

Even consumer goods have increased drastically like the following:

SUGAR

VEGGIES

and everything you need for breakfast, lunch and dinner compounded by unabated gasoline price increases.

Is this the what the current administration have promised in its campaign speeches?

Comments

GusTheRedneck profile image

GusTheRedneck Level 6 Commenter 16 months ago

OCD - Any subsidy given to one group takes away from the other groups. Sometimes subsidies are extremely deleterious, for example the subsidy in the U.S. to those who take corn (maize) away from food uses to manufacture inefficient grain alcohol for tranportation.

Gus :-)))

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