Senator Sonny Angara feels happy after learning that 96% of the 3 trillion pesos plus budget have been released. Though most of these funds are allocated for infrastructure development, some portion of the national budget fund public services.
I agree with Angara. Government spending assures the continued growth of the economy. Simple economic equation: more monies to finance government projects means more business to the private sector. More private firms benefiting from these funds, more people employed and more dynamism in the retail and even on the wholesale markets.
As more firms generate more income, these incomes go straight to the banks. Banks then re-invest it to bigger business conglomerates who then use the money either for expansion or improvement of their services and facilities. More monies for improvement, the better services and manufacturing of goods become.
By theory, these firms then pay their taxes which are then collected by government to fund its treasury and pay for its obligations. The thing is, we don’t exactly know how the economy is presently structured. We do know that the biggest slice of the economic pie is being consumed by the country’s biggest enterprises and businesses. Just how many of them are tied to their multinational principals remain largely speculative. The traditional purview is the largesse of these private incomes go straight to foreign banks and corporations who then use the money to play or invest in other markets.
Government, especially our economic experts should ensure that the big chunk of revenues are recycled back to the system to contribute towards economic growth. Experts, with the assistance of the academe, must re-structure the system to such a way as to retain more of privately-held profits and assets within the economic structure and limit its remittance abroad. That way, the idealist notion put forth by Angara here is actualized.