Airdropping money above the slums: Better than DAP? Like and/or Share This Article: kickerdaily/airdropping-money-above-the-slums-better-than-dap/ MANILA, Philippines – As a way to stimulate the economy, former budget secretary Benjamin Diokno suggested to air-drop P144 billion cash in paper bills above the slums so that the money will directly go to households, hence, it will be spent immediately. Not meant to be taken literally, Diokno said it was much better than the implementation of Disbursement Acceleration Program or DAP. “Why the slums? Because hindi makikipag-agawan ‘yung mga milyunaro doon. Talagang pupunta sa mahihirap. At gagastusin nila agad yun. If you drop it sa Forbes, they will get it, but deposit it in a bank. Where’s the pump priming there?” Diokno half-jokingly said. (Why the slums? Because millionaires will not run after it in that kind of place. It will definitely go to underprivileged people. They will spend it right away. If you drop it in Forbes, they will get it but deposit it in a bank. Where’s the pump priming there?) Since it was said that DAP was created to “speed up public spending” and “boost economic growth”, experts said the economy never felt pump priming effect on projects funded by DAP. “It had little, if any, impact, at all,” Diokno told ABS-CBN News. He cited Australian Prime Minister Kevin Rudd’s action as more realistic to DAP, as the latter gave tax refunds ranging from $250 to $900 during his term. He said, if the Philippines would only replicate the same program, it would reward the tax payers. “If you didn’t pay taxes, you don’t get a rebate. It’s a real option. ‘Yun ang pump-priming,” he stated. “When we talk of “pump-priming” we talk about something dramatic, immediate, and something that will either lead to more employment, income or inclusive growth, ” economist Margarito Teves said, having almost same analysis as that of Diokno’s. “Assuming there are 20 million taxpayers in the Philippines, and the P144 billion released by the Aquino administration for the DAP is divided equally and refunded to taxpayers instead of spending these on various “pump priming projects,” each taxpayer would receive P7,200,” ABS-CBN reported. Like and/or Share This Article: kickerdaily/airdropping-money-above-the-slums-better-than-dap/
Posted on: Thu, 04 Sep 2014 17:47:35 +0000
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