Hard work, optimism for 2023
There is much optimism among Filipinos as a new year starts. Coming from two years of a global health crisis, many are hopeful that 2023 will be better compared to the previous years and for many reasons. If the last two years’ main theme was to survive the pandemic in terms of health and finances, this year is a time to rebuild and plan for what is ahead. And while the new year is not a guarantee that things will magically change overnight, it offers the chance to start on a clean slate and build on the gains that were made in the past year as the economy got back on its feet.
The optimism is spread across sectors: A Pulse Asia survey released just before Christmas showed that 92 percent “will face the new year ahead with hope.” The pollster said this sentiment was echoed by 89-99 percent across geographic areas, and by 86-94 percent in the various socioeconomic classes. In another survey conducted by OCTA Research, around 46 percent of Filipinos believe that the country’s economy will improve over the next six months. This optimism is echoed by the country’s top businessmen who, while noting several challenges for the world economy up ahead, cited the steps that have been made that steered the Philippine economy to a positive track.
Finance Secretary Benjamin Diokno also cited several reasons to be optimistic this year: the early approval of the 2023 national budget, which ensures that programs and projects under the national government, will start to run from Day One of the new year; the early adoption of the “first-ever Medium Term Fiscal Framework,” which envisions an upper-middle income economy for the Philippines; and the swift approval of the Philippine Development Plan 2023-2028, which aims to reinvigorate job creation and accelerate poverty reduction. “For the Philippines, the worst is over and the best is yet to come,” Diokno said.
It does not mean, however, that just because the worst is over, it will be a road paved with roses from hereon. Rebuilding under a new normal requires learning from the lessons that the COVID-19 pandemic brought and finding solutions to the problems and weaknesses that the health crisis exposed, ensuring that those plans Diokno mentioned are implemented as intended, and resetting mindsets in order to look ahead. It will require a lot of hard work.
At the very least, Filipinos can look forward to lower income tax rates for fixed-income earners. Starting today, individual taxpayers will pay lower income tax rates: 5 percentage points lower for those with annual taxable income of P250,000 to P2 million, and 2 percentage points for those earning more than P2 million up to P8 million annually. Those whose taxable income is more than P8 million, meanwhile, will have to pay more. These changes, part of the Tax Reform for Acceleration and Inclusion (TRAIN) law that took effect in 2018, ensure an increase in the take-home pay for employees.
This will be a huge boost for Filipinos who, in the past year but most especially in the last quarter, had to contend with high prices of basic commodities with much talk about how to squeeze a decent “noche buena” into a P500 budget. Now that the holidays are over, they can look forward to having more take-home pay; this could go a long away—it will add up to their savings for one—amid fears of a global recession this year with economists advising the public to tighten belts and delay nonessential spending.
Improving Filipinos’ lives should be the government’s top priority because an economic recovery will be meaningless if it does not trickle down to the grassroots. The labor sector is demanding an across-the-board wage increase to help workers cope with inflationary prices, health workers are still waiting for the release of their COVID allowances, jeepney and bus drivers are asking for a surge fee during rush hour amid rising fuel prices, while taxi operators are seeking another hike in flag-down rates, among others. There are many more concerns for the ordinary Filipino and all of them are basic: an efficient transport system, decent public housing, quality education, reliable health system, sustainable employment, a livable environment, a government that will serve the public’s interest.
Filipinos are known for being resilient and being optimistic is part of the cultural psyche, but this should not be an excuse for the government to take for granted that they can surmount future challenges. Optimism is good—coming from a slump, there is no way to go but up. But let all the plans for this year not go the way of most new year’s resolutions that only look good on paper. This year is indeed a time to rebuild—but most importantly, to build better.
Happy New Year!
