The advantages of the administration-backed sin-tax reform measure, which is expected to generate P60 billion, far outweigh its perceived disadvantages, since its proceeds will improve public health and the national economy, and may even partly fund safety nets for affected farmers, if needed.

Budget Secretary Florencio Abad said on Wednesday in reply to the BusinessMirror, when asked whether Malacañang remains hopeful that foes of the proposed measure would eventually come around and support it.

“The benefits are so clear. Their concern is the impact of the measure on the tobacco industry and the tobacco farmers. That needs to be looked into but if one looks at the big picture, the benefits are so much more. Part of the proceeds may even be used to alleviate any possible adverse impact on the farmers,” Abad said in a text message.

Those opposed to the administration-proposed sin-tax measure fear that the latter would kill the tobacco industry, and encourage smuggling and counterfeiting activities.

Abad said the Department of Finance estimates to generate P60 billion in annual revenues from the proposed measure, half of it, or P30 billion, to be allotted as additional funding for the administration’s public health programs.

Abad said these programs include the expansion of the coverage of the National Health Insurance Program (NHIP), including higher premiums; the deployment of more nurses, doctors and midwives in poor communities; and rehabilitating and equipping district, provincial and regional hospitals.

Additional funds for public health would also lead to more rural health units (RHUs) and birthing facilities, “and intensive programs to reverse and bring down child and maternal mortality rate, among others,” Abad said.

He is hopeful that lawmakers opposed to the measure would see the bigger picture—the intended beneficiaries of the revenues and the measure’s overall impact on public health, and ultimately, the economy.

“That’s the whole rationale—the positive fiscal impact and the benefits to public health. It’s a no-brainer!” Abad said.

He said that “ensuring the health of all Filipinos is a necessary component” in the administration’s platform of good governance.

“If we can safeguard our citizens against disease and help them improve their general well-being, they can in turn become more productive members of society, ultimately creating a positive impact in local commerce and the national economy,” Abad said.

In a press statement, Abad said the health subsector has been allotted an increased funding of P49.9 billion this year, 30 percent more than last year. Of that total, P44.4 billion will be directed to the Department of Health (DOH).

Under the 2012 DOH budget, P12 billion will support premium subsidies under the NHIP which Abad said represents an P8.5-billion increase from the previous year’s P3.5-billion budget, and will cover 5.2 million indigent households identified via the National Household Targeting System (NHTS).

Abad said that the NHIP budget for this year will also allow the DOH to double the annual premium subsidy for each family to P2,400.

Another P5.1 billion under the DOH budget will be directed to the Health Facilities Enhancement Program (HFEP), through which key health facilities across the country will be upgraded and made even more accessible to local communities.

The budget chief said the DOH will also actively pursue public-private partnerships for the modernization of 25 regional hospitals, for which the government has allotted P3 billion in counterpart funds.

The Doctor to the Barrios program will receive P1.7 billion, far higher than its P123.3-million allocation in 2011, and will deploy 200 doctors, 1,021 midwives, and 12,000 nurses in regional health units, barangay health stations, and hospitals.

The DOH will allow P2.3 billion of its budget to the Family Health and Responsible Parenting program, partly to be used for the vaccination of at least 899,396 senior citizens against influenza and pneumonia; and P1.9 billion for the Expanded Program on Immunization to cut down infant mortality and morbidity.

The DOH is targeting at least 2.6 million Filipino children up to 15 months for this program, which will help protect infants against Hepatitis-B, measles, tetanus, rotavirus, and other such diseases, the Department of Budget and Management said.