The 15th president up close
With a candidacy that was sparked by the public sympathy over the death of his mother, the country's 15th president, Benigno Simeon "Noynoy" C. Aquino III, is out to prove that he is not merely riding on his parents' fame.
Mr. Aquino-- the 50-year-old bachelor son of the late former president and democracy icon Corazon "Cory" C. Aquino and late former senator Benigno S. Aquino, Jr. -- won the presidential race with a record 15.2 million votes or 42% of the ballots cast.
In an interview following his proclamation, he vowed to address particularly graft and corruption and a ballooning budget deficit. He also reiterated his opposition to new taxes as a way to solve the budget shortfall. "I am against aggressive new taxes like the tax on text which affects those who are belonging in the lower classes," he said.
Instead of raising taxes, he said in a campaign sortie that he would improve tax collection efficiency by at least 2% to at most 15% of gross domestic product (GDP).This, he added, would translate to about P150 billion in new revenues without adding burden to the over-taxed employee or the public in general.
He held on to this view even if it raised eyebrows from the business community which has been concerned on where the government would source funds to sustain expenditures needed to propel growth.
"We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at [the Bureau of] Customs if we seriously clamp down on tax evasion in curbing tax evasion and smuggling," Mr. Aquino told BusinessWorld via e-mail during the campaign.
"Of course we know the great amounts of money that our government loses on graft and corruption. Thus, fighting corruption and promoting transparent and accountable governance is our main thrust."
Indeed, the fight against corruption has topped Mr. Aquino’s agenda as president. Per his TV advertisements during the campaign, the former Tarlac congressman claimed that eradicating corruption would attract foreign investments, and consequently provide more jobs. Addressing once and for all the chronic problem would also free up funds needed for social services and education -- expense items that would benefit the masses.
The campaign against corruption, Mr. Aquino said further, would be backed by an "all-out war" against poverty via an economic plan that would "focus on maximizing the productivity and profitability of agriculture, boosting tourism opportunities and reducing the cost of doing business all over the Philippines."
Giving teeth to this campaign promise, the Aquino scion said one of his first directives would be the creation of a mechanism to achieve closure on all pending corruption issues in coordination with the Ombudsman, particularly on issues against the Arroyo administration.
Mr. Aquino is also aiming for efficient budgeting by enforcing qualitative and quantitative measures and compliance with Commission on Audit rules in determining allocations for government agencies.
Local government units would also be entitled to incentives, he added, for as long as they perform according to high standards of governance. Bulk of the budget meanwhile would be aligned to critical areas and sectors such as anti-corruption efforts, generation of employment, food security, education, agriculture and justice.
Mr. Aquino said he would also convene the Judicial Executive Legislative Advisory and Consultative Council within the first 100 days of his administration and explore budget and administrative support to improve the justice system.
Amending the Constitution, he added, is also part of his agenda to be spearheaded by creating a commission made up of academicians, representatives from civil society groups and various sectors and regions. The scheme has apparent similarities to the Constitutional Commission crafted by his late mother; the group crafted the present Charter.
Mr. Aquino also vowed to appoint qualified and competent officials, dispelling notions that his administration would be another "Kamag-Anak, Inc." (nepotism). The practice was allegedly espoused by his mother’s government. "We will have honest, competent and credible people heading these agencies and instituting transparent systems and processes of these agencies," he noted.
A recently converted supporter, former Arroyo economic adviser and Albay Governor Jose Ma. Clemente "Joey" S. Salceda, who quit the administration party Lakas-Kabalikat ng Malayang Pilipino-Christian Muslim Democrats, has claimed that an Aquino presidency could result in a higher public investment rate to 8% of gross domestic product or roughly P642 billion in incremental private investments in the first 18 months of the new administration, from the current 4%. The investments, he added, could generate 642,000 jobs.-- from a report by Gerard S. dela Peña
Views of leadership
In the weeks leading up to the May 10 polls,BusinessWorld asked Mr. Aquino and the eight other presidential candidates seven questions to get their views on the economy and the presidency. Mr. Aquino gave his answers to the questions through e-mail.
1. BW: How would you address a looming fiscal crisis which would likely be inherited by the new president, something which the Arroyo administration has not done?
Aquino:DBM (Department of Budget and Management) will lead an internal government review of the budget and present a concrete plan to bring down overhead spending. We will plug revenue leakages by having competent and trustworthy tax collectors and broadening the tax base. We’ll target raising the tax collection efficiency rate by at least two percentage points from the present 12%. Two percentage points translates to P150 billion in new revenue without raising taxes. We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at Customs if we seriously clamp down on tax evasion and smuggling. Fighting corruption and promoting transparent and accountable governance is our main thrust.
2. BW: What would be your strategy to attract investments and rebuild business confidence (ease of doing business)? What is your position on fiscal incentives in light of eroding revenues?
Aquino: We will encourage free and fair competition in a level playing field. One not need be a crony in order to succeed in the field of business. Rules should not change in the middle of the game, specifically in procurement processes... We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with the government. We will also directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage... I believe that markets are better than government in spotting where the growth opportunities are, and, with universal low tax rates, we will encourage entrepreneurs and enterprises to invest and create jobs in any industry. We will, therefore, pursue the rationalization of fiscal incentives early in my administration.
3. BW: What would be your first agenda upon assuming office?
Aquino: My first five priorities upon assuming office are:
1) Create a commission that will study the necessity of amending the Constitution.
2) Establishing a mechanism to achieve closure of all pending corruption issues.
3) Zero-based budgeting… Quantitative and qualitative measures of agency performance as well as compliance with findings of the Commission on Audit shall determine succeeding budget allocations.
4) Qualification standards, especially on eligibility, will be strictly enforced and we will ensure that at least 50% of undersecretaries and assistant secretaries are career personnel.
5) Convening the Judicial Executive Legislative Advisory and Consultative Council, which will review the justice system and possible areas for budgetary as well as administrative support within the first 100 days of the Aquino presidency.
4. BW: What is your policy on providing basic necessities -- food, shelter, clothing -- and how would this be implemented?
Aquino: We will extend social programs to all people, including universal [insurance] coverage. We will ensure that the informal sector will gain access to credit, social programs and full protection under the law... We will implement an expanded conditional cash transfer program by increasing the coverage of the Pantawid Pamilyang Pilipino Program (4Ps)... We will enable microfinance to contribute more towards poverty reduction in the Philippines by: (a) increasing outreach to more poor people, particularly those in the rural, agricultural communities; (b) promoting the integration of microentrepreneurs into the mainstream market; (c) ensuring that MFIs are profitable as they help reduce poverty among their clients; and (d) increasing the access of the poor to formal financial services.
5. BW: Besides economic reforms, what political reforms do you want to introduce and how would this be done?
Aquino: I believe in the empowerment of LGUs (local government units) and our institutions; we will create an incentives system where resources are made available to LGUS that perform according to high standards of governance. We will strengthen the party system by pushing reforms and incentivizing party-strengthening efforts. Also, within the first 100 days of my administration, I will have a credible, non partisan, multi-sectoral commission study seriously if there is a need for Charter change.
6. BW: How do you plan to reconcile differences with political opponents?
Aquino: This is a people’s campaign, and it is bigger than my bid for the presidency. Our funding and support comes from so many people from so many walks of life. The posters if you have seen them, not a single one has been made by me or my organization but by the volunteers. When we talk to them, we do ask that this is not just a question of campaigning, that this is not just a question of guarding the ballot once the vote has been rendered. As for the campaign team, diversity is our strength. The people’s campaign was born out of a public clamor and because of this, the people than can rightfully claim ownership of this campaign.
7. BW: How do you want people to remember you by the end of your term in 2016?
Aquino: I want the Filipino people to remember the people’s campaign and our crusade to restore transparency, honesty and good governance in our government. I want them to remember how the Aquino-Roxas administration made democracy work, not just for the rich and well-connected, but for each citizen. I also hope to be the president that will be missed when I step down.
Mr. Aquino-- the 50-year-old bachelor son of the late former president and democracy icon Corazon "Cory" C. Aquino and late former senator Benigno S. Aquino, Jr. -- won the presidential race with a record 15.2 million votes or 42% of the ballots cast.
In an interview following his proclamation, he vowed to address particularly graft and corruption and a ballooning budget deficit. He also reiterated his opposition to new taxes as a way to solve the budget shortfall. "I am against aggressive new taxes like the tax on text which affects those who are belonging in the lower classes," he said.
Instead of raising taxes, he said in a campaign sortie that he would improve tax collection efficiency by at least 2% to at most 15% of gross domestic product (GDP).This, he added, would translate to about P150 billion in new revenues without adding burden to the over-taxed employee or the public in general.
He held on to this view even if it raised eyebrows from the business community which has been concerned on where the government would source funds to sustain expenditures needed to propel growth.
"We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at [the Bureau of] Customs if we seriously clamp down on tax evasion in curbing tax evasion and smuggling," Mr. Aquino told BusinessWorld via e-mail during the campaign.
"Of course we know the great amounts of money that our government loses on graft and corruption. Thus, fighting corruption and promoting transparent and accountable governance is our main thrust."
Indeed, the fight against corruption has topped Mr. Aquino’s agenda as president. Per his TV advertisements during the campaign, the former Tarlac congressman claimed that eradicating corruption would attract foreign investments, and consequently provide more jobs. Addressing once and for all the chronic problem would also free up funds needed for social services and education -- expense items that would benefit the masses.
The campaign against corruption, Mr. Aquino said further, would be backed by an "all-out war" against poverty via an economic plan that would "focus on maximizing the productivity and profitability of agriculture, boosting tourism opportunities and reducing the cost of doing business all over the Philippines."
Giving teeth to this campaign promise, the Aquino scion said one of his first directives would be the creation of a mechanism to achieve closure on all pending corruption issues in coordination with the Ombudsman, particularly on issues against the Arroyo administration.
Mr. Aquino is also aiming for efficient budgeting by enforcing qualitative and quantitative measures and compliance with Commission on Audit rules in determining allocations for government agencies.
Local government units would also be entitled to incentives, he added, for as long as they perform according to high standards of governance. Bulk of the budget meanwhile would be aligned to critical areas and sectors such as anti-corruption efforts, generation of employment, food security, education, agriculture and justice.
Mr. Aquino said he would also convene the Judicial Executive Legislative Advisory and Consultative Council within the first 100 days of his administration and explore budget and administrative support to improve the justice system.
Amending the Constitution, he added, is also part of his agenda to be spearheaded by creating a commission made up of academicians, representatives from civil society groups and various sectors and regions. The scheme has apparent similarities to the Constitutional Commission crafted by his late mother; the group crafted the present Charter.
Mr. Aquino also vowed to appoint qualified and competent officials, dispelling notions that his administration would be another "Kamag-Anak, Inc." (nepotism). The practice was allegedly espoused by his mother’s government. "We will have honest, competent and credible people heading these agencies and instituting transparent systems and processes of these agencies," he noted.
A recently converted supporter, former Arroyo economic adviser and Albay Governor Jose Ma. Clemente "Joey" S. Salceda, who quit the administration party Lakas-Kabalikat ng Malayang Pilipino-Christian Muslim Democrats, has claimed that an Aquino presidency could result in a higher public investment rate to 8% of gross domestic product or roughly P642 billion in incremental private investments in the first 18 months of the new administration, from the current 4%. The investments, he added, could generate 642,000 jobs.-- from a report by Gerard S. dela Peña
Views of leadership
In the weeks leading up to the May 10 polls,BusinessWorld asked Mr. Aquino and the eight other presidential candidates seven questions to get their views on the economy and the presidency. Mr. Aquino gave his answers to the questions through e-mail.
1. BW: How would you address a looming fiscal crisis which would likely be inherited by the new president, something which the Arroyo administration has not done?
Aquino:DBM (Department of Budget and Management) will lead an internal government review of the budget and present a concrete plan to bring down overhead spending. We will plug revenue leakages by having competent and trustworthy tax collectors and broadening the tax base. We’ll target raising the tax collection efficiency rate by at least two percentage points from the present 12%. Two percentage points translates to P150 billion in new revenue without raising taxes. We can collect more taxes at the BIR (Bureau of Internal Revenue) and higher duties at Customs if we seriously clamp down on tax evasion and smuggling. Fighting corruption and promoting transparent and accountable governance is our main thrust.
2. BW: What would be your strategy to attract investments and rebuild business confidence (ease of doing business)? What is your position on fiscal incentives in light of eroding revenues?
Aquino: We will encourage free and fair competition in a level playing field. One not need be a crony in order to succeed in the field of business. Rules should not change in the middle of the game, specifically in procurement processes... We will streamline the approval process, not only for setting up new businesses but also in the regular day-to-day transactions with the government. We will also directly target industries with the greatest potential for growth and where the Philippines has a competitive advantage... I believe that markets are better than government in spotting where the growth opportunities are, and, with universal low tax rates, we will encourage entrepreneurs and enterprises to invest and create jobs in any industry. We will, therefore, pursue the rationalization of fiscal incentives early in my administration.
3. BW: What would be your first agenda upon assuming office?
Aquino: My first five priorities upon assuming office are:
1) Create a commission that will study the necessity of amending the Constitution.
2) Establishing a mechanism to achieve closure of all pending corruption issues.
3) Zero-based budgeting… Quantitative and qualitative measures of agency performance as well as compliance with findings of the Commission on Audit shall determine succeeding budget allocations.
4) Qualification standards, especially on eligibility, will be strictly enforced and we will ensure that at least 50% of undersecretaries and assistant secretaries are career personnel.
5) Convening the Judicial Executive Legislative Advisory and Consultative Council, which will review the justice system and possible areas for budgetary as well as administrative support within the first 100 days of the Aquino presidency.
4. BW: What is your policy on providing basic necessities -- food, shelter, clothing -- and how would this be implemented?
Aquino: We will extend social programs to all people, including universal [insurance] coverage. We will ensure that the informal sector will gain access to credit, social programs and full protection under the law... We will implement an expanded conditional cash transfer program by increasing the coverage of the Pantawid Pamilyang Pilipino Program (4Ps)... We will enable microfinance to contribute more towards poverty reduction in the Philippines by: (a) increasing outreach to more poor people, particularly those in the rural, agricultural communities; (b) promoting the integration of microentrepreneurs into the mainstream market; (c) ensuring that MFIs are profitable as they help reduce poverty among their clients; and (d) increasing the access of the poor to formal financial services.
5. BW: Besides economic reforms, what political reforms do you want to introduce and how would this be done?
Aquino: I believe in the empowerment of LGUs (local government units) and our institutions; we will create an incentives system where resources are made available to LGUS that perform according to high standards of governance. We will strengthen the party system by pushing reforms and incentivizing party-strengthening efforts. Also, within the first 100 days of my administration, I will have a credible, non partisan, multi-sectoral commission study seriously if there is a need for Charter change.
6. BW: How do you plan to reconcile differences with political opponents?
Aquino: This is a people’s campaign, and it is bigger than my bid for the presidency. Our funding and support comes from so many people from so many walks of life. The posters if you have seen them, not a single one has been made by me or my organization but by the volunteers. When we talk to them, we do ask that this is not just a question of campaigning, that this is not just a question of guarding the ballot once the vote has been rendered. As for the campaign team, diversity is our strength. The people’s campaign was born out of a public clamor and because of this, the people than can rightfully claim ownership of this campaign.
7. BW: How do you want people to remember you by the end of your term in 2016?
Aquino: I want the Filipino people to remember the people’s campaign and our crusade to restore transparency, honesty and good governance in our government. I want them to remember how the Aquino-Roxas administration made democracy work, not just for the rich and well-connected, but for each citizen. I also hope to be the president that will be missed when I step down.
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