The Department of Finance (DOF) on Thursday dismissed the findings of a risk assessment institution highlighting the supposed alarming increase in the military and police budgets as nothing more than a figment of their twisted imagination.
According to Gil S. Beltran, who is also chief economist at the DOF, the latest report by Hong Kong-based Political and Economic Risk Consultancy Ltd. (PERC) and its assessment on political governance in select Asian economies does not deserve anyone’s attention.
He said the conclusion of its analysts was based on poor research, inconsistent judgment and ill-founded speculations.
The PERC gave the Philippines the lowest mark among 12 Asian economies in this regard, but Betran argued the grades it handed out in its report “reflect the personal opinion of PERC’s senior analysts rather than something that is based on quantifiable scientific evidence”.
“If these were so, then PERC’s analysts have failed to appreciate the basic facts on the ground and have failed miserably in their exercise of good judgment,” Beltran said.
Beltran added the PERC based its assessment of the Philippines on President Duterte’s declaration of martial law in Mindanao and the erroneous conclusion that the government’s increased public spending program was likely to beef up the military and the police than in addressing pressing infrastructure deficiencies.
The PERC also said the military and the police are both seriously overextended already.
“If any, the budget of the military may never be greater than the budget allocation for education as per the 1987 Constitution.
The combined budget for the military and the police this year and the following year shows that it comprises less than 9 percent of total spending,” Beltran said.
As for the limited declaration of martial law in Mindanao, Beltran said this was a constitutional response to decisively deal with the threat of ISIS extremists, an action that was not done arbitrarily that was even upheld no less by Congress and the Supreme Court.
“The bigger picture, however, is that the President is making bold steps in coming up with a resolution of the Mindanao issue and achieve lasting peace in the island. He has initiated dialogues with the MILF [Moro Islamic Liberation Front] and MNLF [Moro National Liberation Front] groups but has taken a tough stance with the Abu Sayyaf and its Islamic State affiliates. PERC’s analysts have only taken a look at the latter but failed to see the bigger picture,” Beltran said.
In PERC’s vulnerability index, Thailand was rated 6.0, while the Philippines got only 3.32, largely because the former provided “stable and effective government” and faced “no
credible challenge”.
“The idea of the Philippines under high vulnerability to radical political changes is but a figment in the imagination of PERC’s analysts who appear to have bias against the present government. PERC should not tarnish its credibility with ill-founded speculations, let alone poor research,” he said.
He also said the initatives of the Duterte administration to disrupt the status quo is consistent with the goal to foster inclusive growth for all Filipinos and develop the countryside.
According to the DOF, far from concentrating on amassing more political power, the President has instead given top priority to the political and economic enfranchisement of the people primarily through a massive spending program focused on infrastructure and social services.
“Furthermore, a series of tax-reform programs are being worked out with the Legislative body to fund these increased spending plans for inclusive development. They are never intended to increase the budget of the military and the police forces,” Beltran said.