Noy opts for populist moves amid ratings fall By Aytch S. de la Cruz 04/07/2011

ORDERS STUDY FOR WAGE HIKE, OIL VAT CUT, PRICE CONTROLS

Noy opts for populist moves amid ratings fall

By Aytch S. de la Cruz 04/07/2011

With his survey ratings fast declining, President Aquino yesterday launched a major offensive to earn brownie points through a directive to his economic team to study populist measures such as a wage increase for private sector employees, a reduction of value added tax (VAT) on oil, and the imposition of price controls on basic commodities which moves are no different from the populist maneuvers of the past administration to raise ratings and woo voters. Aquino denounced the Arroyo administration for making similar moves that led to the worsening situation in the government budget.

The Aquino administration is looking at a budget deficit of P290 billion after a record P314 billion fiscal gap last year.

Aquino in his speeches had referred to decisions of the past administration borne out of political necessity, for the worsening of the fiscal situation, particularly the decision of former President Arroyo to cap electricity charges by deferring power purchase adjustment (PPA) collections owed to independent power producers (IPP) that resulted in the bloating of the debts of state power firm National Power Corp. (Napocor)..... MORE

Source:  The Daily Tribune

URL: http://www.tribuneonline.org/headlines/20110407hed1.html