Presidential aspirant Senator Manny Pacquiao on Friday cited the need to shore up non-tax revenues by maximizing the economic potential of all Government Owned and Controlled Corporations (GOCCs) to offset the government’s runaway budget deficit.
Speaking before Philippine Christian University (PCU) officials, faculty members, and students, Pacquiao also pushed for the lowering of corporate and personal income taxes to create a favorable business climate and boost domestic consumption.
For 2021, Pacquiao said that Congress allotted P4.5 trillion for the National Expenditure Program (NEP) but the government only managed to generate P2.9 trillion in revenues.
He said this prompted fiscal managers to bridge the deficit gap through borrowings.
For next year, Pacquiao said the Duterte administration is asking for a P5.024 trillion budget while the government revenues further slid down to a little more than P2.5 trillion.
He blamed the systemic corruption and wrong fiscal policies such as the government’s dependence on tax revenues and external borrowings as the primary cause of the country’s economic crisis and looming debt crisis.
Pacquiao added the decision of previous governments to sell government assets were short-sighted and were all prompted by corruption.
He believes the only way to address the country’s worsening economic situation is for the government to increase its non-tax revenues.
The senator said that the government can potentially generate P5 trillion a year had the previous governments not privatized three key utility assets, which are power, water and telecommunications.
The revenue that can be generated from GOCCs in these three key areas is already enough to cover the country’s budget requirement without resorting to high-interest loans, Pacquiao said.
Pacquiao was at the PCU supposedly to attend his fourth session and first face-to-face class on logistics operation and supply chain management for his master’s degree in management and public administration, but this turned out to be a grand welcome for the university’s most celebrated student.
Pacquiao, along with some members of his staff enrolled at PCU last May and his previous sessions were done through Zoom.
After the introduction of all the PCU officials and teaching staff, Dr. Margie dela Cruz, PCU Vice-President for Globalization and Extension, debunked claims that Pacquiao faked his baccalaureate degree in political science.
She said there is nothing unusual if one finishes a degree in a short period if it is done through the expanded tertiary education equivalency and accreditation program of the Commission on Higher Education (CHED).