Salceda, Castro differ on how Marcos admin is handling economy

Two House leaders have opposing views of the Marcos administration's handling of the economy, with House ways and means panel chairperson Joey Salceda citing jobs growth and House Deputy Minority Leader France Castro pointing to inflation.

In a statement on Wednesday, Castro said the Marcos administration is neglecting the top concern of the majority of Filipinos: controlling inflation or the rate of increase in the prices of consumer goods and services.

Castro was responding to the Pulse Asia poll showing that controlling inflation remains the top concern of Filipinos at 63%, a figure uncharged from the previous last quarter. The same Pulse Asia survey also showed that the Marcos administration got the lowest approval rating at controlling inflation at 31%, against a 37% disapproval rating.

"The Filipino people are still burdened by the high prices of goods and services. Furthermore, the persistently low wages exacerbate the struggles faced by our hard working citizens, making it increasingly difficult for them to make ends meet. Di uubra dito ang mga baryang pagtaas ng sahod o iilang Kadiwa stores samantalang tumaas ang singil sa tubig pero maraming walang tubig, mataas ang presyo ng langis, tataas din ang pasahe sa MRT at LRT at tumaas pa ang presyo ng bigas," Castro said.

June's inflation rate of 5.4% marked the fifth consecutive month since January 2023 that inflation has declined.

But Castro said that substantial wage increases and a reduction in the prices of basic goods and services are not mere desires but urgent demands that the government should prioritize and address effectively.

She also called on President Ferdinand "Bongbong" Marcos, Jr. to certify the following measures as urgent:

• House Bill 5994 or the bill removing value added tax (VAT) on systems loss in electricity
• House Bill 5995 removing VAT on electricity bills
• House Bill 5996 removing VAT on toll fees and
• House Bill 5997 removing VAT on water bills.

“These are concrete steps in alleviating the plight of Filipino consumers and lowering their bills. The administration must recognize that the well-being and welfare of the Filipino people should be at the forefront of their policies and programs, she said.

“It is high time for the government to take decisive action in raising wages and implementing concrete measures to address the high cost of living. Failure to do so will only perpetuate the suffering of our fellow Filipinos," she added.

Jobs gains, growth

But in a separate statement, House ways and means panel chairperson Joey Salceda argued that Marcos has managed the reopening of the economy very well, with the commitment to no more lockdowns amid the COVID-19 pandemic which took months of effort in restoring hospital capacity.

“That was accomplished without fanfare or drama. Just the concerned government agencies working to get it done. It’s becoming a mark of this administration that its best accomplishments are achieved with little fuss. I commend that kind of management style,” Salceda said.

In addition, he cited that unemployment is going down under Marcos, with 290,000 more jobs created under the present administration since Marcos assumed office on June 30, 2022.

“On conventional macroeconomic goals of lower prices, more jobs, and higher growth, he’s doing very well,” Salceda said.

However, Salceda continued, fiscal consolidation is still needed given that the Bureau of Internal Revenue collections only increased by just 0.5% over the first quarter, while Bureau of Customs collections are just at 13% growth.

“Hopefully the President announces a fiscal consolidation program during his State of the Nation Address, because we need to spur his majorities in both houses to pass new revenue measures. We needed to borrow to survive the pandemic, but we’re going to have to pay those debts,” he said.

“And when the interest and principal payments take their bite, we will have to do less infrastructure and social services, unless we create. new revenue streams. We really need fiscal consolidation,” he added. — BM, GMA Integrated News