ANGARA PUSHES FOR FISCAL REFORMS

Senator Edgardo J. Angara today said he will introduce broad and sweeping fiscal reforms to rein in the reckless borrowings of government corporations, plug loopholes in the grant of tax breaks to undeserving beneficiaries and hasten the government privatization programs which have been stalled by various legal and technical hindrances.

Angara, who chaired the senate committee on banks in the 13th Congress, said that in addition to the sweeping fiscal reforms, he will also move to redirect part of earnings of profitable state corporations to benefit grand social programs such as education.

Angara said that the case of the National Food Authority, which has piled up P50 billion in loans it cannot service, is just one case of reckless borrowing. The NFA was able to do this, he added, because of the automatic government guarantee given to loans obtained by state -owned corporations.

There are other state-owned corporations saddled with debts they cannot pay, though not in the magnitude of NFA's P50 billion obligation, said Angara.

Angara said the removal of the automatic guarantee for loans contracted by the state -owned corporations will "usher in prudence in borrowings and will push the lenders to lend out money only to corporation that can repay their loans."

"Once the automatic guarantee provision is scrapped, the reckless borrowings will automatically cease," said Angara.

Angara said several tax waivers and tax breaks that the government grants every year are unnecessary.

The scrapping of these tax breaks and waivers will translate into revenue of roughly P250 million a year for the government.

"The beneficiaries of the tax breaks do not deserve them. They are neither pioneering economic sectors nor deserving of tax breaks," said Angara.

The review of the entire incentives scheme of government is a "must" said Angara.

Angara said that several privatization programs have hit snags, specifically the high-profile but contentious privatization of the National Power Corporation. These should be hastened, he added.

"The debt-burdened NAPOCOR should sell its unsold assets with urgency. On top of raising money for the government, the privatization will also result into a more efficient power sector and cheaper electricity to consumers," said Angara.

On highly-profitable government corporations, the imperative agenda should be the direction of their earnings, said Angara.

He added that the likes of the PAGCOR and the PCSO should allocate a portion of their profit to big social programs such as education.

"Money from these corporations should be allocated in part to building classrooms, acquiring books and propping up public education," said Angara.