Did you watch the news on TV? Or read on Facebook that Robredo wants the Duterte government to explain spike in inflation rate?
Well, we all know Robredo is a lawyer by trade and suddenly when the VP is showing interest in inflation rates, many people have received the news with raised eyebrows.
This is especially true when Robredo used the word “government” when the lady doctor said the VP is part of the “government’ she has taken to task.
This is also the initial reaction of the lady physician who went out of her way to explain to Leni Robredo, to the best of her knowledge, the difficult topic called inflation rates and much, much more.
What is more worrisome according to Badoy is when Robredo imputes this ‘alarming’ inflation rate to the TRAIN law!
The lady doctor remarked that the current inflation rate at 4.6% as of June 6, 2018 is moderate compared to historical highs of 5 to 10%. Besides, only 0.4% (zero point four per cent) of this inflation rate can be attributed to TRAIN.
Meanwhile, the lady doctor also explained to Robredo the pros and cons of TRAIN law and why suspending it now as per request of the political opposition is anti-poor.
First, the TRAIN law gives the Duterte government the cash to finance the building of much needed infrastructures and help the country catch up with ASEAN neighbors who have made great progress in terms of economic development.
Second, the taxes from TRAIN law will help build the social structures that will protect the vulnerable in our midst and further strengthen the fabric of our society—public hospitals, schools, shelters, etc.
Third, all these build, build, build projects will create thousands and thousands of jobs for the little guy.
Fourth, the lady doctor tackled the oil price hike issue.
Badoy said the rise in oil price is not solely because of the TRAIN law.
She cited that of the 12.2 pesos per liter increase in gasoline, only 3 pesos is because of TRAIN.
By the way the lady doctor is none other than PCOO Undersecretary Lorraine Marie Badoy.
You may read the full text of Badoy’s post below for details.
I hear the VP wants government to explain to her the “spike” in our country’s inflation rate.
(There is a part of me that went, “Government? Isn’t she part of government?” What a silly question really because we all know the answer to that, don’t we?)
More worrisome is how she imputes this ‘alarming’ inflation rate to the TRAIN law. (This inflation rate, by the way is moderate compared to historical highs of 5 to 10% by the way.)
The TRAIN law.
This powerful tool of the Duterte Administration that has the potential to move our country forward and that was created for a lot of great reasons.
For instance, it will build infrastructure that will finally put our country on the map and solidly be part of the 21st century because we’ve been so left behind by even our ASEAN brothers and sisters.
And it will build social structures that will protect the vulnerable in our midst and further strengthen the fabric of our society—public hospitals, schools, shelters, etc.
And it will create MILLIONS of jobs for the little guy.
TRAIN, if it isn’t successfully suspended, will take MILLIONS out of poverty. And TRAIN, if suspended at this point, will create poverty. There’s just no two ways about it.
So Madam VP, as someone who is clearly and solidly part of this government, let me explain to you the current causes of inflation.
Let me start by saying that this inflation is NOT due to TRAIN in any big way. Only 0.4% (zero point four per cent) of this inflation rate can be attributed to TRAIN.
So for every 100 pesos in ADDITIONAL spending, only 8.7 pesos is because of TRAIN. 91.3 pesos is by other non-TRAIN forces.
Of the 12.2 pesos per liter increase in gasoline, only 3 pesos is because of TRAIN.
Of the 11.6 pesos increase in diesel, only 3 pesos is because of TRAIN.
The rest are by factors that have absolutely nothing to do with TRAIN.
So let go of that narrative, Madam VP.
It is patently FALSE.
You peddle it some more—even in coached passive aggressive language you disentes are so adept at—and I will call you, as I did on the Senate floor, the #1 purveyor of fake news.
Someone who doesn’t want this government to succeed because, put simply, TRAIN will most certainly move our country forward. I am certain you want our country to succeed, right, Madam VP?
Back on track.
External factors caused this inflation, Madam VP.
The US sanction on Iran led to higher world prices of oil from 60.9 USD to 73.4 USD. TRAIN had absolutely nothing to do with it.
Another external factor is the increase in US interest rates that led to the peso depreciation from 50.3 to 52.2 pesos per dollar.
Here are other causes.
Before TRAIN, only those with incomes of 10k/month and below were exempted from paying taxes. With TRAIN, so much more were exempted from paying taxes—those who earned 20k per month no longer needed to pay taxes.
This, effectively, put more money in people’s pockets.
Specifically, 32 billion pesos per month in additional money for this sector.
There is then is an additional 32 billion going around in our economy. PER MONTH.
To be more accurate, 90% of this 32 billion is spent on Jollibee, movies with the family, beach outings, new phones, etc. In other words, HINDI MARUNONG MAG-IMPOK AT MAG INVEST ANG PINOY. LOL. O dba tutoo? Ginagastos ang 90% ng 32 billion na yan.
And this 90% is inflationary. A happy one, may I add. (Ask that family that just had Chicken joy or that kid with a new cell phone, if you doubt me.)
Here’s another cause, Madam VP—another happy one may I add:
Better tobacco compliance.
Tobacco companies are now paying higher taxes from 1.5 billion per month to around 3.5 billion per month.
As a doctor who absolutely HATES cigarettes, I am happy to say that higher cigarette prices now translate to 6 pesos per stick from a low of 3 pesos per stick.
Of the 28.3 per cent inflation of tobacco products, one fifth of that is due to the TRAIN law. 4/5 is due to better tax compliance.
The BIR in this government, if you don’t know it yet, is getting the job of tax collection done magnificently well with back to back record-breaking collections, Madam VP.
There you go, Madam VP. Those are some of the causes of this inflation. Not TRAIN (except for that teeny weeny point four per cent).
I’d also like to tell you, in case hindi mo pa alam, that our country, according to the reputable Business Insider, is the top country to invest in right now. We, too (according to the IMF) are the 2nd fastest growing economy in the world and the fastest in our region.
Ang galing galing ng Pangulong Duterte no, Ma’am?
Have a nice day, Madam VP.
Wag ka na mabahala.
Balot na balot sa kumikinang na Pag-Asa ang Bayang Pilipinas. Kelangan ko na nga mag-shades eh.