The government needs to spend more on social protection in 2023

If Filipinos are going to be able to chart the turbulent waters of 2023, the Ippon Foundation said the national government will have to increase social protection for households and small and medium enterprises (MSMEs) nationwide this year.

The headwinds that the global and domestic economy faced this year have already been cited by multilateral agencies, corporations, NGOs and even the government, as evidenced by this year’s lower GDP.

Jose Enrique A. said: Africa, CEO of Ippon, said this makes it all the more urgent to help households and businesses in order to stimulate domestic demand and keep the economy afloat. It can be seen that the Philippine economy is consumption-driven.

“Put money into people’s pockets to improve their well-being, to increase their consumption, but also to stimulate domestic demand,” Africa said at a new news briefing in Quezon City last Wednesday. “We fully believe in the role of the state in social and economic development.”

The government can provide support to poor families and micro, small and medium enterprises by considering imposing a wealth tax. Africa said the wealth tax, which targets the $3,000 billion billionaires, would be able to generate at least 468.8 billion pesos.

Contrary to the opinion of some economists, Africa said a wealth tax would not keep billionaires away because so much of the wealth that could be taxed by the government is here in the country.

If the cash

The executive director of a non-governmental think tank said the billionaires’ cash assets may have already been taken out of the country, but that other assets such as those of corporations could be taxed. He also believed that these billionaires will continue to remain in the country despite the wealth tax because they are able to earn in a country with a market of 110 million Filipinos.

“These 3,000 billionaires, a large portion of their wealth comes from the valuation of their ownership in companies,” Africa said. “A large part of their wealth is not subject to capital flight. if Cash Fine; But there is likely to be [foreign countries] Previously.”

He added that the government has the power to monitor the wealth of these billionaires. They can even help encourage billionaires to pay wealth taxes by boosting corporate social responsibility efforts and other philanthropy.

Africa also said there were the beginnings of a mechanism to push for wealth taxes, especially after the World Economic Forum (WEF) discussed them in 2019. He said that while these kinds of reforms take decades to bear fruit, the government should really start acting. toward this.

One example of these types of reforms, Africa said, was the passage of the Anti-Money Laundering Act of 2001. The law allows authorities to identify significant single transactions or multiple large transactions within a few days where they could be considered illegal transactions.

Basically, we don’t agree that a wealth tax will push money abroad. Africa stressed that it would generate funds for social and economic development.

Agriculture Fund

Not useless, Africa admits that not all debt is bad. He said the debt can be justified if it contributes to the country’s development.

One example, he said, is if the government borrows to finance projects that support agriculture. Recently, Africa said, the lack of cold storage facilities has already been pointed out and contributed to the high price of onions.

If the country incurs large amounts of debt to finance “urban-biased” infrastructure, it will not stimulate growth and development and will only exacerbate inequality.

“Debt in and of itself is not necessarily a bad thing. If debt is used to help the economy grow, this can be a short-term cost to medium-to-long-term development,” Africa said.

Earlier, the Cold Chain Association of the Philippines (CCAP) said it was requesting at least 6 billion pesos to double the industry’s storage capacity for onions and reduce the disparity between total annual supply and storage capacity.

CCAP President Anthony S. Dizon said the estimated capacity for cold stores dedicated to onions across the country is about 100,000 metric tons (MT), which is just 27 percent of the annual supply of 360,000 metric tons.

Onion cold stores have “unique” design and conditions to meet the commodity’s needs, Dizon said, which involve high humidity and moderate air circulation. (The full story here: https://businessmirror.com.ph/2023/01/24/expanding-onion-cold-chaincapacity-to-cost-%e2%82%a76b-group/)

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