Minimum wage, maximum woes

Earning P400 a day for 17 hours of work means an endless cycle of loans for this barangay
watchman, whose wife also takes in laundry to make ends meet
By: Sara Isabelle Pacia- Senior Digital Producer / @SPaciaINQ

On the 30th of every month, Leo Cabigting gets his pay as head of the volunteer watchmen in his
village. But hardly has the money touched his palm before creditors take a hold of it.  The creditors
regularly loan Cabigting the cash he needs to manage his household expenses as he waits for his
salary at month’s end.
Cabigting (not his real name) heads a 97-member Barangay Public Safety Office (BPSO) in Quezon
City. He works seven days a week, from 6 a.m. to 11 p.m.

“When I get my salary, I immediately pay my loans so I can get another loan,” said Cabigting.  He
needs the fresh infusion of loans to augment the salary that barely covers their expenses, he added.
Most of his P12,000 monthly pay go to food, utilities, and his children’s allowances and jeepney fare
for school. When the Inquirer interviewed him in January, Cabigting said he had an outstanding loan
of between P20,000 to P25,000, not counting the interest piled on it.
“There’s nothing left at the end of the month,” he added. His wage isn’t enough. “It’s really, really
lacking,” the village watchman said.
Poverty threshold
Cabigting is one of millions of Filipinos living below the country’s poverty threshold. His salary is well
below the Metro Manila standard of P14,730 for 30 days of work.
As of June 2, 2016, the National Wages and Productivity Commission pegged the minimum wage for
nonagriculture workers in Metro Manila at P491 for an average workday of eight hours, or 40 hours a
week.
In comparison, Cabigting earns only P400 a day for 17 hours of work. To make ends meet, his wife
washes their neighbors’ clothes for P60 per kilogram. The family also rents out a videoke machine
gifted by the barangay chair for P500 to P700 a night.

Read more: http://newsinfo.inquirer.net/893029/minimum-wage-maximum-woes#ixzz59XOab7ER 
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Philippine inflation hits new 3-year high at 4.5% in February

(3rd UPDATE) Higher prices of food and drinks, among others, drive the cost of living up, with inflation
at its fastest rate since August 2014

Chrisee Dela Paz

Published 10:17 AM, March 06, 2018
Updated 3:31 PM, March 06, 2018
MANILA, Philippines (3rd UPDATE) – The squeeze on Filipino households continues as inflation, or
the movement of prices of basic goods and services, rose to 4.5% in February, the highest in over 3
years.

The Philippine Statistics Authority (PSA) on Tuesday, March 6, said higher prices of food, drinks, and
tobacco were the biggest factors behind the jump.
"The uptrend resulted from the faster annual gain recorded in the heavily-weighted food and non-
alcoholic beverages index at 4.8% and the double-digit annual increment in alcoholic beverages and
tobacco index at 16.9%," Deputy National Statistician Romeo Recide said in a statement on Tuesday.

Rising costs of clothing, transport, furniture, and dining out also spurred the inflation rate in February
to an over 3-year high, data from the PSA showed.

It was in August 2014 when the inflation rate in the Philippines hit 4.9%.

Tax reform, peso depreciation

Prices of rice, corn, bakery products, meat, milk, and fruits increased way faster in February, than in
the same month a year ago.

While electricity bills and fuel prices rose in February, the inflation rate of electricity, gas, and other
fuels was lower in February than in the same month in 2017, largely attributed to base effects.
(READ: EXPLAINER: How the tax reform law affects Filipino consumers)

Inflation in February was faster than the 4% recorded last January and 3.3% posted in February 2017.

The increase in prices of basic goods and services was faster than the government initially projected it
to be. It was beyond the government's target of between 2% and 4% for full-year 2018.

According to the National Economic and Development Authority (NEDA), the momentary impact of the
newly-implemented Tax Reform for Acceleration and Inclusion (TRAIN) law and the continued
depreciation of the Philippine peso will "mainly influence" price movements in the coming months.

"[W]e must ensure that mitigating measures should be in place," Socioeconomic Planning Secretary
Ernesto Pernia said in a statement.

He added that the government must pay closer attention to the poor. (READ: Inflation seen to
continue hitting poor Filipinos hard)

Pernia, who is also the director general at NEDA, said there is a need to expand the Pantawid
Pamilyang Pilipino Program (4Ps) and to hasten the distribution of the monthly unconditional cash
transfer of P200 per household.

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Based on the agency's calculations, Pernia said around 0.7 percentage points of inflation for 2018 will
likely be attributable to TRAIN.

Two data sets

While the February inflation was beyond the government's 2018 outlook, it was within the projection of
between 4% and 4.8% for the month alone.

"The elevated February inflation is in line with our updated forecast for a temporarily higher inflation
than target range in 2018 due to transitory factors," Bangko Sentral ng Pilipinas (BSP) Governor
Nestor Espenilla Jr said in a text message to reporters.
Starting this month, the PSA will release the rebased consumer price index (CPI) series, along with
the 2006-based series.

But for July 2018 onwards, the PSA will only release the rebased CPI, which it just implemented last
week.

Under the rebased CPI, inflation in February 2018 stood at 3.9%.

The CPI is an indicator of the change in the average prices of a fixed basket of goods and services
commonly purchased by an average Filipino household for their day-to-day consumption relative to
a base year.

"Based on the 2012 rebased index, however, inflation remains within target both in February and most
likely for 2018," Espenilla said.

"Our forecast remains that inflation will decelerate back to well within target in 2019, whether based
on 2006 or 2012 index. Nonetheless, we will continue to closely monitor the developments and factor
in all relevant data in our coming reviews of monetary policy stance," he added.

The BSP governor said the "monetary policy operates with a long lag."

"Whatever monetary policy action we do now will more likely be felt in 2019 and beyond, rather than
2018. That's why we don't necessarily react to February 2018, but must look much further ahead and
rely on forecasts," he added.

As an indicator, the CPI is most widely used in the calculation of the inflation rate and the purchasing
power of the peso.

The inflation rate measures the changes in the CPI over a specific period of time, usually a month or a
year. – Rappler.com

World Bank: PH growth to remain strong this 2017-2018

By CNN Philippines Staff

Updated 16:27 PM PHT Sun, July 2, 2017
Metro Manila (CNN Philippines, July 2) — The World Bank bank said Saturday it expects the
Philippines to continue its robust growth in 2017, adding it projects the country's economy will expand
at 6.8 percent this year.

In its updated quarterly forecast for 2017-2018, the World Bank projected an adjusted 6.8 percent
2017 growth rate, slightly lower compared to the 6.9 percent it predicted last quarter, based on recent
economic trends.  It also predicted a growth of 6.9 percent for 2018 -- the same as its April forecast.

The World Bank said government consumption and investment growth was slightly weaker due to
lower public spending in the first quarter of 2017, but said private consumption and exports remained
high.

It added given the high base due to election-related spending in the first quarter of 2016, growth in the
first quarter of 2017 was in line with the World Bank's growth projection.
World Bank Lead Economist for the Philippines Birgit Hansl said supporting higher investment levels
will be "critical" to sustaining the economy's growth momentum in the medium-term.

"The government's ability to realize its infrastructure spending agenda will determine if the Philippines
can achieve the growth target of 6.5-7.5 percent for 2017," she said.

Consumption is expected to grow at 5.6 percent in 2017 and 6.1 percent in 2018, compared to 7.2
percent in 2016. The World Bank said remittance flows play a role in maintaining this consumption
growth in the medium term, adding remittances increased by eight percent in the first quarter of 2017
compared to three percent in first quarter 2016.

It also said in line with the gradually improving global economy and trade this 2017, growth among the
Philippines' main trading partners will boost demand for Philippines exports.

In June 2016, the World Bank said the Philippines, along with Vietnam, had the strongest growth
prospects in Southeast Asia despite a slowdown in the global economy's growth

Palace: PH economy on a roll as PSEi hits all-time high

By CNN Philippines Staff
Updated 19:06 PM PHT Sun, January 28, 2018
Metro Manila (CNN Philippines, January 29)— Malacanang welcomes the Philippine Stock
Exchange's (PSE) new record as shares closed at a record high Friday.

The PSE index breached the 9,000 mark, with the trading session gaining 42.03 points at 9,041.20,
up by 0.5 percent from Thursday's close.

"Our economy is indeed on a roll. We expect to reach our growth target for the year with the
implementation of the first package of the Tax Reform for Acceleration and Inclusion (TRAIN),"
Presidential Spokesperson Harry Roque said at a press briefing on the sidelines of the Dinagyang
Festival in Iloilo Sunday.

The government expects to draw billions in revenue from the new tax law.

Expect more tax reform laws under Duterte administration – gov't

By Ina Andolong, CNN Philippines

Updated 18:11 PM PHT Mon, January 8, 2018
Metro Manila (CNN Philippines, January 8) — Even as the public braces for the effects of the new tax
reform law, a heads-up from the government: there's more coming.

The Tax Reform for Acceleration and Inclusion (TRAIN) law, signed by President Rodrigo Duterte in
December, is just one of the five tax packages under the administration's comprehensive tax reform
plan.

The TRAIN law, which took effect on January 1, 2018, has a second phase — Package 1B — which
is still pending in Congress. Package 1B will include estate tax amnesty, a general tax amnesty,
adjustments in the motor vehicle users charge, and amendments to the bank secrecy law.

In a media briefing on Monday, Finance Secretary Sonny Dominguez said Phase 1B will add some
P38.9 billion to the P89.8 billion revenues expected to be generated by  the TRAIN law.
Why more tax reforms are needed
Dominguez said the government needs to make sure it has money to fund a good portion of its
programmed expenses.

"Package 1B is crucial to keep the 3 percent of GDP (gross domestic product) deficit target. To meet
this target for the rest of the administration, we will need to pass Packages 2 to 5. No succeeding
packages means either a breach of this deficit which will hurt our economy or a cut in government
spending possibly compromising the president's infrastructure program," he explained. 

Dominguez said that if the GDP deficit target is not met, the government will need to borrow money to
achieve its goals, which is not ideal.

"It is not wise to borrow everything. Just like any business, you have to have your own capital. This is
our capital," he said.

The main goal of the tax reform program is to raise about 25 percent or roughly P2 trillion of the
administration's infrastructure program valued at P8 trillion.

The Finance Secretary stressed some of the tax packages are "revenue neutral," which means they
won't come with higher taxes.

"The other tax packages are not so much increasing taxes. It is just making it fair," he said.

One of these "revenue neutral" measures is Package 2, which is slated to be submitted to Congress
this month.

It will lower corporate income taxes and modernize fiscal incentives.

Packages 3 and 4 are expected to reach Congress within the year.

Package 4, another revenue neutral measure, will adjust passive income and financial taxes.

Dominguez said the government is still assessing if Package 5 is necessary since some of its
provisions were already incorporated in the enacted TRAIN law.

Providing housing for low-income families

Dr. Bernardo M. Villegas
Among the basic needs of the poor living in urban areas, the one that makes the biggest contribution
to enhancing their human dignity is decent housing. If we consider that food, shelter, clothing and
education are among the most basic of their needs, it is shelter that is the most visible manifestation
of the dignity of a human being. The poor can survive on rice, fish and vegetables and maintain their
dignity vis-a-vis the well-to-do.

The Filipino poor is also very resourceful in maintaining a dignified and clean appearance even with
the barest of wardrobe, resorting to frequent washing of clothes and maintaining them in good
condition.  In urban areas, their children usually find little difficulty having access to public schools. But
what offends most their human dignity is to be forced to live in hovels and make-shift “barong
barongs” in dirty and unhygienic slum areas. Such inhuman living conditions are what lower very
much the self-esteem of the poor.

That is why it is very important that there be sustained and vigorous effort of the government (both
national and local), the business sector, and civil society to implement the provisions of R.A. No.7279,
whose objectives are to uplift conditions of underprivileged and homeless citizens in urban and
resettlement areas through decent housing at affordable cost, coupled with basic services and
employment opportunities. To achieve this primary objective, every effort should be exerted to ensure
the rational use and development of urban lands that will lead to the following:

Equitable utilization of residential lands in urban areas, focusing on the needs and requirements of
underprivileged and homeless citizens and not simply on free market forces;

— Optimization of the use and productivity of land and urban resources;

— Development of urban areas conducive to commercial and industrial activities, which can generate
more economic opportunities for the people;

— Reduction in urban dysfunctions, particularly those that adversely affect public health, safety and
ecology; and

— Access to land and housing by the underprivileged and homeless citizens.

These were reminders issued by Atty. R. Ojastro III, special assistant then to the late DILG Secretary
Jesse Robredo, in a recent workshop on socialized housing sponsored by the Center for Research
and Communication for LGU officials, officers of cooperatives, top executives of Pag-Ibig Fund and
economists specializing on the economics of housing. The participants were reminded of the harsh
reality that the housing backlog in the Philippines faced by informal settlers and homeless families is
estimated at close to four million units. Region IV has the largest backlog of about 850,000, followed
by the National Capital Region, which has close to 500,000, and Region III, with about 460,000 units.
These are the regions that have become highly urbanized and are in great need of innovative
approaches to socialized housing.
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