Part Two
WHERE do taxes go?
The taxes paid to the Philippine government come back to its citizens in the form of improved government social services, according to the National Tax Research Center (NTRC) in its June 2015 publication, entitled “Where does your tax money go?”
“Taxes, being the lifeblood of the government, should be adequate in order to finance the general requirements of growth and development of our country,” the NTRC said. “With more tax collections, the government will be able to widen the scope of expenditures in development programs and projects, and improve the quality of basic services and, thus, provide more economic benefits to every Filipino.”
Abrea Consulting Group President Raymond A. Abrea, however, said taxes go to the state coffers to enable the government to fund infrastructure and social services to improve the quality of life felt by Filipinos, with bulk of the tax being used for to pay for the salaries of government employees.
“It goes to the budget of the government to fund infrastructure and social services,” Abrea said. “But mainly, it is used to pay the salaries of the millions of government employees.”
Spending
THE NTRC said that, on average, expenditure per Filipino by the government amounted to P25,942 for 2014, from P18,084 in 2009. On the other hand, tax payments made by the Filipinos reached P18,303 per Filipino in 2014, from P11,373 in 2009. These result to a tax benefit of P7,649 in 2004, from P6,711 in 2009.
According to the Tax Management Association of the Philippines (TMAP), tax collections were spent on sectors such as education, health and nutrition, social security and welfare, employment facilitation, housing, roads and transportation, agriculture, power and energy, defense, public security and safety and public services.
Newly constructed classrooms built by the government, for one, have grown to 33,609 for the year 2014 from the 3,154 in 2009. The government provides funds for the construction of public-school classrooms in the country.
In terms of the students benefiting from the classrooms for the years 2009 to 2014, students enrolled in public preschools grew to 1.812 million for School Year (SY) 2014-2015 while enrollees for SY 2009-2010 recorded 1.049 million. Public elementary-school students reached 13.301 million from the 12.574 million in 2009. And those enrolled in the secondary levels reached P5.928 million, from the 5.421 million in 2009.
“To improve access to basic education and to help decongest public schools, the government, through the DepEd [Department of Education] made P7.4 billion available to 1 million students under the Gastpe [Government Assistance to Students and Teachers in Private Education] in 2014,” the TMAP said. “Students and teachers participating in the program are given subsidy.”
Social care
THE government also spends for the necessities of the health-care sector, according to the NTRC.
It funds 452 public hospitals, providing 45,629 beds, 292 Infirmaries with 5,003 beds, 2,581 Rural Health Units, 19,943 Barangay Health Stations and 13 Dangerous Drug Abuse Treatment and Rehabilitation Centers.
The government also provides for the salaries of health-care professionals. In 2014 the government has financed the salaries of 12,592 government doctors; 1,733 dentists; 21,101 nurses; and 14,346 midwives.
“Health facilities in hospitals and other health units; ambulances, medicines, medical supplies and equipment; and subsidy to PhilHealth insurance premiums covering about 87 percent of the Filipinos as of 2014,” the NTRC said.
The Department of Social Welfare and Development (DSWD) served 58,396 children, 12,374 youth, 44,659 women, 4,721 senior citizens, 2,135 persons with disabilities and 25,928 other needy adults in 2013.
The DSWD, in cooperation with local government units, spent about P4.3 billion to provide meals for 1.7 million day-care pupils in 2014 though the government’s Supplemental Feeding Program. It also released P189.9 billion for the program, including implementing costs, covering a total of 4,455,116 households from 2008 to 2014.
Labor, pool
IN terms of employment facilitation, the government, through the Department of Labor and Employment, has provided employment assistance to 182,573 youths through its Special Program for Employment of Students in 2014.
A total of 2,018 job fairs were conducted in 2014, with 134,581 applicants being hired on the spot. In terms of housing for the poor, the government had provided homes to 222,789 low-income families amounting to P58.92 billion in 2014. The National Housing Authority has provided permanent housing to 40,052 families and housing-materials assistance to 143,076 families under its emergency housing- assistance program for calamity victims.
As for infrastructure in the country, the government spends at least P12 billion through subsidies for the Manila Light Rail Transit System and the Manila Metro Rail Transit System, while P8.4 billion is allocated for the Philippine National Railways annually.
Ports growth
IN 2014 the government spent for the rehabilitation of airports and seaports damaged by Supertyphoon Yolanda including the Busuanga Airport and the Port of Maasin in Southern Leyte.
The government also allocates money to improve the agricultural production of the country in order to sustain the basic needs on food of the Filipinos.
The Department of Agriculture had a budget of P52.7 billion for its programs that increased the productivity and income of farmers and fishermen. At least P10.5 billion was earmarked for the 2.1 million farmers, farm laborers and fishermen of the 20 poorest provinces, in 2014.
The distribution of commodities was provided to farmers to further increase agricultural production. These include: seeds like corn, rice and vegetables; planting materials; fertilizers and other soil ameliorants; liquid and solid pesticides; soil-testing kits; animal vaccines and drugs; as well as fingerlings and broodstock.
To be concluded
Image credits: Nonie Reyes