‘Will the funds come from fresh borrowings, further ballooning our already significant national debt and its accompanying interest payments?’
PRESIDENT Ferdinand Marcos Jr.’s recent State of the Nation Address (SONA) last Monday painted a brighter future for Filipinos, brimming with promises of expanded social services, discounted privileges, and even outright “freebies.”
From a P1-billion earmark for feeding programs and another P1 billion for Barangay Child Development Centers, to expanded PhilHealth coverage including cancer and kidney transplants, and even zero-billing in state-run hospitals – the President’s vision appeared to be offerings of a prosperous welfare state.
The President’s generous spirit even extended beyond health care.
The revival of the iconic “Love Bus” system, offering free rides, is slated for pilot programs in Davao and Cebu, promising to ease the commuting woes of countless Filipinos.
Free rides and hefty discounts will continue for LRT and MRT commuters with two family members on Sundays while persons with disabilities (PWDs) and senior citizens enjoy a staggering 50 percent discount, which is above the 20 percent statutory discount.
While already in place, the President had to mention them to reaffirm his government’s commitment to stick with the programs in the next three years.
For marginalized households, a promise of financial support to kickstart their own businesses was made, to benefit some 2.5 million families.
Even sports received a commitment of increased support to discover and nurture new champions, a welcome change given that many of our past athletic greats were largely bankrolled by the private sector.
All the initiatives are noble. They target critical areas where the administration, as the President himself humbly acknowledged, has fallen short.
Addressing malnutrition, providing accessible health care, easing the burden of daily commutes, fostering entrepreneurship among the most vulnerable, and investing in national pride through sports development – these are all worthy endeavors that resonate deeply with the Filipino people.
But amidst these benevolent pronouncements, a critical question looms large — who will foot the bill?
A glaring omission that marred the otherwise uplifting address was the lack of a clear and concise explanation of the financing that will support the ambitious plans.
The freebies outlined in the SONA will undoubtedly entail substantial funding.
Will the funds come from fresh borrowings, further ballooning our already significant national debt and its accompanying interest payments? Or are we to brace ourselves for new taxes that will inevitably burden the very citizens these programs aim to assist?
While the President lauded his government’s gains against drug smuggling and warned traders who try to manipulate the price of palay or rice or cheat the farmers, he regrettably missed to unveil a fresh campaign against tax evasion – a persistent leak in our national coffers that, if plugged effectively, could significantly improve revenues.
There was not even a mention of privatizing state assets or selling unproductive government properties, which could have provided a much-needed capital boost.
This brings us to the fundamental economic truth of state doles: when the government gives something for free, it invariably means someone else is paying for it.
The resources to fund these commendable programs must come from somewhere.
Again, the crucial question that hangs in the balance is: who will ultimately shoulder the tab?
Will it be our lawmakers, sacrificing their much-criticized “pork barrel” out of “hiya” or shame? Will the burden fall on big businesses through increased corporate taxes or more stringent regulations? Or, will it be the public, through a combination of direct and indirect taxes, who ultimately foots the bill for these expansive and undoubtedly costly initiatives?
