RP may close 15 state corporations<\/p>\n
Associated Press, Manila, Phillipines<\/p>\n
The Philippine budget secretary threatened on Sunday to close 15
\nmoney-losing and debt-strapped government corporations if steps
\nare not taken to improve their bottom line.<\/p>\n
President Gloria Macapagal Arroyo is grappling with a
\nburgeoning foreign debt, a huge budget deficit and rising oil
\nprices, which analysts say might lead to a financial meltdown in
\nthree years, similar to Argentina's when it defaulted on its
\nmassive public debt in 2001.<\/p>\n
Budget Secretary Emilia Boncodin said the 15 state-run
\ncompanies have incurred heavy losses because of low revenues,
\ninsufficient operational funds and loss-making subsidiaries.<\/p>\n
The troubled companies include the Light Rail Transit
\nAuthority, which operates a popular commuter rail service in
\nManila, and Philippine National Railways, which runs an
\nantiquated commuter system in the capital. Tobacco and coconut
\nbusinesses, farm irrigation, housing and a television network are
\nalso included.<\/p>\n
Boncodin urged the corporations to sell off assets and
\nincrease fares or service rates to boost revenue and cut losses.
\nOtherwise, the government will be forced to merge the losing
\nbusinesses with more profitable ones, or scale down operations,
\nshe said.<\/p>\n
"We can also abolish the non-performing government-owned or
\ncontrolled corporations altogether, if the administration sees no
\nvisible effort among its officials to turn these corporations
\naround," Boncodin said in a statement.<\/p>\n
"The national government is no longer willing to subsidize
\ninefficiently run corporations," she said.<\/p>\n
However, Boncodin assured employees "there would be no mass
\nlayoffs," without saying whether they would be given other work
\nif state-run corporations are shut down.<\/p>\n
Arroyo has asked Congress to approve new tax bills to raise 80
\nbillion pesos (US$1.4 billion), including one that increases the
\n"sin tax" on products such as cigarettes and alcohol.<\/p>\n
At the same time, she has ordered tough cost-cutting steps
\nwithin the government.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rp-may-close-15-state-corporations-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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