PNoy admin fostered growth, but failed in generating jobs — MGG report

The Aquino administration has made significant gains in terms of economic growth and stability, but failure to alleviate poverty, generate employment, improve infrastructure and raising the tax effort stunted recent strides, according to the Movement for Good Governance (MGG). 

 

In its Result Matrices report largely based on the Philippine Development Plan, MGG said the government scored a perfect 10 for maintaining a high and sustained level of economic growth and managing inflation. 

 

The report was released to coincide with the President's State of the Nation Address before the 16 Congress on Monday.

 

The Philippine economy expanded by 7.8 percent in the first quarter of the year, the fastest in Southeast Asia. 

 

MGG’s report said the government recorded “an average growth rate of 7.4% for the entire period” of President Benigno S. Aquino III’s term, so far.

 

The report also noted a benign rise in consumer prices, which fell within the government’s 3 to 5 percent target. 

 

“With a target of keeping the inflation rates in the 3 to 5 percent range, the government’s efforts at keeping prices stable has been an unmitigated success, and the Bangko Sentral ng Pilipinas (BSP) is to be congratulated,” the report read. 

 

Inflation averaged at 2.9 percent in the first half or below the Bangko Sentral’s 3 to 5 percent target for the year. 

 

“It is true, he (Aquino) got 10 for economic growth, 10 for stability. That's for the economy,” Solita Collas Monsod, University of the Philippines economist and chairman of the MGG, said in an interview on GMA New TV’s “News to Go.”

 

MGG also noted gains in managing the budget deficit and reducing the debt burden. 

 

The group commended the Performance Incentive System for local governments that was put in place by the late Secretary Jesse Robredo and the Bottom-up Budgeting and Open Government initiatives by the Department of Budget and Management.  

 

State expenditure rose 12.4 percent in the January to May, while revenue collection rose 9.7 percent. The government noted it still has room to spend and boost growth, citing a deficit that remains well-below the ceiling.

 

Low scores were given to the sluggish performance of the export sector, the decrease in employment opportunities, and the disappointingly small reduction in poverty incidence. 

 

Despite the gains, the ratio of poor Filipinos to the overall population were basically unchanged since 2009, while the ratio of Filipinos without work rose in April from a year earlier, latest government data showed.

 

“Ang problema is that ang kanyang target ay poverty reduction... flopped. Malaki ang target ay poverty reduction,” Mosod said, noting that the degree of poverty may have eased but the number of poor has increased. 

 

MGG also expressed “disappointment in the slow pace in the implementation” of the Public Private Partnership (PPP). 

 

Touted as the Aquino administration's flagship infrastructure program, the PPP program was unveiled with much fanfare in November 2010. But so far, only three projects totaling P28 billion have been awarded. 

 

The group also observed slow tax effort improvements to 12.9 percent last year from 12.4 percent in 2011. The tax collection effort in 2013 is expected to reach 13.8 percent of GDP.

 

The slow pace of tax collection efforts came in “despite the numerous changes and revisions that the BIR introduced in tax rules and regulations,” MGG said.  — VS, GMA News