Pimentel: Philippine growth should also be measured in economic benefits to population

Senator Aquilino "Koko" Pimentel III on Tuesday said that Philippine economic growth should not just be measured by mathematical data but also by the actual economic benefits to the population.

During Senate discussion on Concurrent Resolution No. 3, Pimentel asked Senate Finance Committee Chairman Sonny Angara, who sponsored Concurrent Resolution No. 3, to present the country’s economic figures at the start of the Marcos administration.

Concurrent Resolution No. 3 expresses support for the government's 2022 to 2028 medium-term fiscal framework (MTFF), which was designed  to attain short-term macro-fiscal stability while remaining supportive of the economic recovery and promote medium-term fiscal sustainability.

Among the 2022-2028 MTFF's targets were:

• 6.5 to 7.5% real Gross Domestic Product (GDP) growth in 2022; 6.5 to 8% real GDP growth annually between 2023 to 2028.
• 9% (i.e., single digit) poverty rate by 2028
• 3% national government deficit to GDP ratio by 2028
• Less than 60% national government debt-to-GDP ratio by 2025
• at least $4,256 income per capita attainment of upper-middle-income status

“With respect to the national government to deficit ratio, that is the third line, the goal is to achieve a 3% deficit GDP ratio. Currently, we are at 6.3%. I saw we reached 7% at one point in the previous year,” Angara said.

“As for GNI (Gross National Income) per capita, because they measure it year by year, so at the end of 2021 its $3,643 GNI per capita, with a goal of increasing to $4,256 GNI by 2028,” Angara added.

“For the GDP growth, we grew by 5.7% [in 2021]. We grew by 8.2% [during 2022's first quarter] and for the second quarter we grew by 7.4%. And we hope to achieve 6.5 to 7.5% GDP growth for 2022 and then increase to 6.5 to 8% GDP growth annually between 2023 to 2028 when the Marcos administration steps down,” said Angara.

Pimentel said the presented figures were impressive, making the MTFF targets of 6.5 to 7.5% and 6.5 to 8% appear to be modest goals.

He added that economic activities would also likely increase with the start of the Christmas season.

However, while he appreciated the measurable criteria, Pimentel suggested that the data should also reflect the distribution of economic benefits.

“At least we made a record start in the Marcos administration and this administration wants to be judged by measurable criteria, we are more scientific in our governance,” Pimentel said.

“I appreciate such an approach, but subject to my suggestion addressed to our economic managers and to those crafting the MTFF and its updates and revisions to also... sana hindi lang mere mathematical GDP or GNI divided by population equals per capita. It does not reflect the distribution of the economic benefits.”

Life-work balance

During his interpellation, Senator Alan Peter Cayetano said that “life-work” balance and more time to be with families should also be considered in Concurrent Resolution No. 3.

“Our [economic planners] should also look at time and the opportunity to be with family or to do extracurricular activities, yung the young people would use now - life-work balance,” Cayetano said.

"Kung if it takes you two to three hours to go to work one way and two to three hours pabalik kahit na mataas ang sweldo mo and quality ang job mo, bumaba ang pamasahe, pero four to six hours ka naman nasa kalye, what is four hours from the time you start working until you retire, di ba napakalaking oras noon?” he said.

Angara agreed with Cayetano adding that this was the experience of some of his staff.

“I completely agree because he is saying that it is just not about money but quality of one’s life, and definitely I cannot argue with that. And I have seen in some of my staffers they can no longer take the two-hour journey from Pasay to Quezon City,” he said.

“So they chose to take a low paying job rather than a high paying job here because then they have a travel time of maybe 20 minutes as opposed to two hours or more,” he added. — DVM, GMA News