Now some legislators and the advocates of the law are asking, where is that money?
See various reports yesterday,
Phil. Star, Cayetano asks where sin tax money goes
Rappler, Senators: Where is sin tax money going?
Tribune, After 1 year of rich windfall, gov’t still has no sin tax IRR IRR
This is one reason why earmarking legislation, setting aside the projected revenues to particular sectors and government agencies, is wrong. I don't
support earmarking of any revenue measures from new tax or tax hikes, or privatization proceeds. The supposed beneficiaries of earmarking are setting
themselves for great disappointment. This happened after Fort Bonifacio
privatization, others. Will happen in the future.
Soon, PAGCOR will be privatized, there is no way out with
huge public debt of the government, rising by P400-P450 billion a year (!!!)
but to privatize it and a few other govt corporations. Other agencies like
DepEd, SUCs, LGUs, etc. will lobby for earmarking too for themselves, to the
exclusion of other sectors or departments. Wrong. New revenues from whatever
sources should be used mainly to reduce the public debt. Savings from interest
payment alone, P330-350 billion a year, can be used for priority sectors and
departments.
Those who campaigned hard for the passage of this law need not throw the towel. For now, it should be a
lesson for them that earmarking legislation is
wrong. They are setting themselves for huge disappointment.
They should also watch PAGCOR privatization, at least P200 B or more, of additional revenues, but
other Departments will lobby for earmarking, and exclude public health, agri,
etc. Winner take all for the strongest lobbyists among different agencies.
DOH UnderSec Ted Herbosa said that the DOF
releases tax collections only after the collection year is completed. Sin tax
collections from Jan. 1-Dec 31, 2013 is now in the 2014 budget. P33 B to fund
the health premiums for NHIP of the poorest 14.7 million families or estimated
over 40 million Filipinos. Hospitals may
get their increased income by providing health services to these Filipinos who
were previously uninsured.
I thanked him for his good clarification, but while additional
tax revenues were realized, the PH public debt keeps rising. From P5.21
trillion in Sept. 2012 to P5.61 trillion in Sept. 2013, or P400 trillion rise
in one year. A P6 trillion total public debt by middle of this year seems no
sweat. And that exposes one problem of budgetary earmarking -- luck to one or
two department/s, woe unto others. When PAGCOR, other parts of Fort Bonifacio,
other military camps, etc. will be privatized, woe unto other departments too
as they will be excluded from additional revenues. Meanwhile, the public debt,
and annual interest payment, will keep rising, and keep depriving everyone else
of more money, they will go to the pockets of lenders. About P352 B this year
on interest payment alone. http://www.treasury.gov.ph/.../NGDebtSept2013...
Meanwhile, see this new development. DOH is not so much a fan of the UP PGH, it thinks that the Department has been giving away research money somewhere else. From interaksyon,
----------See also:
Tobacco Tax 6: On Cigarette Smuggling, February 27, 2012.
Tobacco Tax 7: DOH on NCDs and Tax Hike, March 04, 2012
Tobacco Tax 8: Ban Smoking, or Raise its Tax?, March 12, 2012
Privatization 4: Utilizing Proceeds and Revenues, August 06, 2010
Privatization 8: Government Debts: Military Camps and Spratly Issue, June 20, 2011
Privatization 9: PAGCOR and Casino Operations, May 16, 2012
Fat-Free Econ 12: Privatizing PAGCOR, June 08, 2012
Privatization 10: More on Selling PAGCOR, June 12, 2012
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