Posts tagged with government budget

President Benigno "Noynoy" Aquino III (photo from www.gov.ph)

The Aquino Administration submitted its budget proposal for 2011 to Congress this week. It is through the budget where one can see the priorities of the government, in how much it intends to spend on various programs of government. For 2011, the government under the Aquino administration intends to spend P1.645 trillion.

In his budget message, the President claimed that the spending proposal of the government for next year is anchored on “reform”. The budget claims to have a “bias to the poor and the vulnerable”. However, right at the onset, it is still oriented towards severe austerity, masked with the euphemism “fiscal responsibility,” a government spending orientation that has been the standard policy for decades. It is a policy intended not to simply ensure that the “meager resources” of the government are spent wisely for the people, to ensure that the government is able to pay its foreign and local creditors its monstrous, anomalous and scandalous debt.

Just to show you how scandalous and hypocritical the government’s budget orientation is, the Aquino Administration proposes to pay foreign creditors and financial institutions a whopping P823.27 billion next year (P357.09 billion in interest payments, P466.18 billion in principal amortization not formally included in the P1.645 trillion total budget). According to the initial budget analysis and report of IBON Foundation, the increase in interest payments alone “is the largest absolute increase in interest payments in the country’s history and, at a 29.2% increase from the year before, is the second largest percentage increase after the 32.6% growth in 2000.”

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Friends and supporters of the "PUP 5" jubilantly welcomed the five student leaders as they were released from detention at the Manila Police District HQ

It’s been almost a week since the tuition-hike saga of the Polytechnic University of the Philippines concluded with the successful junking of the proposal. It was formalized at the meeting of the university’s Board of Regents last Monday, after weeks of relentless protests by militant students to stop the almost 2,000% rise in tuition. Last Monday, the police also released the five student leaders after the PUP administration dropped charges of “robbery” against them. They were detained after they tried to bring to the office of the government’s Commission on Higher Education (CHED) some of their dilapidated chairs as a sign of protest. The reconciliation of sorts with the university administration came after representatives of Kabataan Partylist and other student leaders from PUP met with the PUP President and demanded the release of their comrades. In the meeting, the PUP President conceded and eventually surrendered to the democratic interests of the students and committed to supporting the campaign for greater state subsidy for the largest state university in the country instead of imposing a tuition hike.

The developments in PUP highlight one thing, now that the university administration has taken the side of the students and the people. The trail of responsibility for the neglect of our state universities and colleges ends at the gates of Malacanang and Congress. It is through the proposals and policies of the government, with the prodding of its foreign multinational lenders, that funding and support for higher education in the country has been on the decline. Despite increasing enrollment in the country’s public colleges and universities, state funding for such institutions has been dwindling over the decades. This year, state universities will get P3 billion pesos less from 2009. The same trend can be seen in countries across the world, from Greece to the United States, as indebted governments bow to the policy dictates of multinational creditors.

The continued neglect of our country’s state universities, notwithstanding the victory at the Polytechnic University of the Philippines, sets the context that makes it imperative for the scholars of the people, and the rest of us, to continue fighting for the people’s right to education.

Students from PUP Manila and the University of the Philippines marched together to Plaza Salamanca in Manila to pledge their continuing fight for greater state subsidy for education and other social services

Last Wednesday, the sub-committee hearing the budget of state universities and colleges (SUC’s) unanimously committed to restore the budget to its 2009 level. It means to say that the proposed P3 billion budget cut by the President and the Department of Budget & Management is rejected at the sub-committee level, and the budget for the country’s 110 SUC’s would be back to around P24 billion.

Kabataan Rep. Mong Palatino remarked that this is imperative, as the proposed budget has barely any allocation for SUC’s capital outlay. How then can SUC’s affected by the recent calamities rebuild their schools?

A few days earlier, the DBM released a statement defending the budget cut in response to several protests launched by the National Union of Students of the Philippines (NUSP). They claimed that the proposed P21 billion budget is sufficient to sustain the services of SUC’s, as they are anyway allowed to generate their own income. What they didn’t say is that this forced income generating policy is done at the expense of students, through tuition and other fee increases. The statement only proves that our analysis as correct, that budget cuts and tuition increases are state policies that harm the future of the youth and the nation.

The motion to restore the P24 billion budget drew cheers from the attending university officials and employees. One state university president, however, remarked that though he was elated by the motion of the congressmen, he feared that it may be another disappointment. Apparently, congressmen, the politicians that they are, have for the past years committed to similar promises of budget increases, only to disappoint SUC’s once the General Appropriations Act is passed. Hopefully, the attending congressmen stay true to their word and maintain the P24 billion commitment–insufficient as it is, is better than the P21 billion budget proposed by the Executive.

It must be stressed, however, that this relief is temporary, as though the sub-committee approved the increase, the same must also be approved by the Committee on Appropriations and the House of Representatives in plenary session. It also has to get the approval of the Senate. Needless to say, it is too soon to be glad about the development.

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Tulong Kabataan‘s relief effort for the victims of tropical storm Ondoy is still ongoing! You may drop off your donations at any of the donation centers in schools across the Metro. You may also donate via Paypal. Or you may go to our headquarters at 118-B Scout Rallos St., Quezon City for volunteer work. The HQ is near GMA Network’s main offices along Timog Avenue.

With your help, Tulong Kabataan was able to hold soup kitchens in some communities a few days ago. Yesterday, we joined Makabayan’s clean-up effort at Tumana, Marikina. Hand in hand, volunteers helped the residents fill up two garbage trucks of debris. Today, there will be a medical mission in Malate. This weekend, if the weather permits, we will push through with the centralization of all relief goods collected from the donation centers and do repacking and distribution to several affected communities.

Today the House of Representatives will start hearing the 2010 budgets of country’s state universities and colleges (SUC’s). We are of course, for the increase of the budgets of public institutions of higher learning.

Unfortunately however, many of the appointed administrators of state universities are resigned, even subservient, to the government’s policy of reducing government support to SUC’s. This year, the total allocation for the country’s 110 state universities and its almost 1 million students was slashed by P3 billion pesos. This situation, for the past years, has lead to the rampant increases in tuition and other miscellaneous fees in SUC’s, fervently implemented by its administrators. These have, in turn, made tertiary education in the Philippines increasingly inaccessible to the vast majority of Filipino youth.

This phenomenon of state abandonment of public higher educational institutions is not confined to the Philippines. It is a challenge being faced by many state universities and colleges around the world as an effect of a global free market philosophy that forces governments to cut on social services such as higher education in order to “balance the budget” and finance debt servicing.

A few days ago, thousands of students from state-funded University of California (UC) and other state universities and colleges in California walked out of their classes and protested against the budget cuts and the consequent tuition increases that were to be implemented by the state government. In defense of the cuts, the state government hammers the justification that everyone has to tighten their belts in light of fiscal crises and growing budget deficits. It is a rhetoric that is echoed even by the Philippine government. These belt-tightening justifications are nevertheless rejected as crises of their own making and as hypocrisies because governments continue to provide huge sums on questionable allocations and continue providing huge tax incentives to large corporations. In the Philippines for example, the government annually allocates tens of billions of pesos in Presidential discretionary funds that are immune from auditing scrutiny.

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Even state university students and faculty in California are walking out in protest to the present state government’s policy of privatizing state public higher education institutions, from UC Berkeley to California State University. Budget cuts, tuition hikes, limited admissions, corporate tie-ups, these are phrases that sound all too familiar to students from state universities in the Philippines. It is a reinforcement of the assertion that commercialization of public higher education is a product of a global free-market philosophy.

The budget cuts in California and in the Philippines take on very similar forms, as do their consequences. State policies (Higher Education Compact in California, Medium Term Higher Education Development Plan in the Philippines) declare that state universities should generate their own income from privatization and tuition hikes. Consequently, state funding is reduced as school administrators raise tuition and limit certain student services. It’s even worse in the University of California where salaries are also being slashed and enrollment/admissions are being limited.

In California as it is in the Philippines, despite gradual state abandonment of public higher education institutions, enrollment in state universities is increasing, students continue to flock to public institutions and their share in the total enrollment of all college students is growing larger by the year. The situation is more serious in California where public institutions enroll 79% of all college and university students. The share in the Philippines is 35% in 2008 (from only 10% in 1980). These figures should actually reinforce the policy of strengthening support to public higher education institutions instead of cutting subsidies.

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