EDITORIAL

Practice Sound Fiscal Policies

by ERNESTO T. SOLIDUM

Aklan Provincial Finance and Budget was the topic discussed during Kapihan forum on November 13 at Smokehauz Resto & Bar. Guests were Ms. Suzette F. Pioquid, Provincial Treasurer and Engr. Roger M. Esto, Chief Provincial Planning Development Office (PPDO).

Atty. Ronquillo C. Tolentino cited Sec. 316 of RA 7160 which directs LGU’s to organize local Finance Committee to address fiscal policy on social and economic development. Regular members are PPDO Provincial Treasurer and SP representative. One of their unenviable tasks is to prepare the Annual Budget Appropriation and Provincial Investment Plan.

Fortunately, the 2011 budget was submitted to the SP last October 15, 2010 said Engr. Esto. By category, budget is divided into three which are: social, economic, and environ-mental development. The 20 percent economic development fund is targeting poverty alleviation, food security, maintenance of roads and bridges, and all others.

The PPDO Chief cited education thrust of Gov. Marquez’ administration allocating P14 million for scholarship and School of Nursing where first crop of graduates last year got 82 percent passing average.

Meanwhile, agriculture thrust is strengthened with the on-going hybrid rice production program, livestock upgrading project, lambaklad, abaca, and cacao production to increase farmers’ pro-ductivity and income, Engr. Esto added.

Ms. Pioquid revealed that of the P700 million collectible revenues for current year, 73 percent of it has been done as of October. Obviously, problem lies with poor real estate tax receipts that call for drastic action like sale of it at public auction of land whose owners are notorious tax evaders.

The lady treasurer confirmed that budget cap on personnel expenditures is limited to 41 percent rather than the maximum of 45 percent. This is the reason why we could release funding for pay increase, 13th month pay and other incentives. The province employs 986 regular employees plus 1000 casuals, majority of them are serving in seven community hospitals.

However, there is a need to brace up for P75 million earmarked for debt servicing by next year said Ms. Pioquid. "Most likely, we will charge this to 20 percent allocation for Internal Revenue Allotment (IRA)", Pioquid suggested.

The present adminis-tration of Gov. Marquez is beginning to feel the backlash of deficit spending mainly driven by massive infra development. By fiscal year 2011, the P75 million originally destined for economic development will be channeled to debt servicing. This will create a profound economic impact on the most vulnerable sector of society. Poverty affects 42.6 percent of the total population. Without remedial measures in sight, this could induce them into desperation.

Trend In EU

In the European Union (EU), countries like Greece has adopted stringent austerity measures while France has increased pension age from 60 to 62 years old. These are bitter pills to swallow but apparently there is no recourse if the economy is to survive the worse global recession since the last 50 years.

It is noted that a big chunk in the budget is allotted to casuals which outnumber the regular employees. Of course political patronage could not be ruled out but the public is entitled to fair and competent services. The Department of Budget and Management must adopt a ceiling on hiring of casuals and determine the needs of their services.

Nurses Over Supply

Otherwise, we are entertaining a bloated budget that is outrageous and unsustainable.

The School of Nursing funded by the Provincial government may have achieved the status as one of the top ten proficient schools in the country. Our sincere congratulations! However, nursing education in the country is heading to bad times. Glut of nurses abroad especially in the US does not bid well for aspiring graduates to enter this medical job. Popular demand is now on blue collar workers like plumbers, electricians, welders, and mechanics. It appears that nursing program of Aklan would only lead to oversupply of nurses, economic hardship and frustration. The wise move is to abandon the whole nursing education program and strengthen private school sector participation not only in nursing but criminology and restaurant courses.

On tourism, the proposed Jetty Port in Pook, Kalibo will eventually be started next year. It is envisioned that the infra facility would boost tourism by ferrying tourists from abroad via fast craft direct to Caticlan and back. Obviously, RORO vessels could be provided alternate docking destination aside from Caticlan and Dumaguit ports. This will minimize traffic congestion and road damages.

Unlike the Jetty Port in Caticlan where Boracay Island serves as natural cover, the site in Pook is open to disastrous wave action during Northeast moonson (Amihan). Lambingan park is also near protected area for angelwing clams (diwae) whose survival is at stake. Reclamation and heightened oil pollution could disrupt breeding, spawning and growth of this rare marine specie that is source of food and livelihood of local fisherfolks.

Public spending must be balanced with what we earn. This is basic. It must also be responsive to peoples’ need and interest. Debt servicing is bound to continue and escalate for several years if our present leadership does not hedge in their propensity for high impact projects. It should be underscored that only Jetty Port in Caticlan is gaining among the offices listed under the Economic Enterprises Department. Unsound fiscal policies are a deterrent to progress and must be avoided at all cost. /MP