Stoning MIF tree

“The MIF is meant to augment the revenues of the government and not to draw from them as the incessant detractors claim.

Now that the signing of the Maharlika Investment Fund is a certainty, the flak it has been receiving has increased, much of it totally absurd.

President Ferdinand “Bongbong” Marcos Jr. vows to sign the MIF bill as soon as he gets hold of it.

The Makabayan bloc in the House of Representatives is now connecting the push to tax junk food and hike the levy on sweetened drinks to the setting up of the fund.

According to the schemers, the new sources of revenue are necessary to cover the amounts that would be taken from government financial institutions and the budget to come up with the P125-billion seed money for the MIF.

The levy on sugar-sweetened beverages has been a part of the Tax Reform for Acceleration and Inclusion Law that was successfully implemented in the previous administration.

The junk food tax, meanwhile, had long been proposed, way before the MIF bill was drafted.

Besides, the infusions from the government financial institutions will come from their investible funds that are used to generate income.

The combination of the soft drinks and junk food taxes is expected to raise an additional P76 billion that would go to fund government health programs.

The MIF is meant to augment the revenues of the government and not to draw from them as the incessant detractors claim.

It is an alternative to the usual tax collections and borrowings as a source of funds for social programs and infrastructure buildup.

According to Finance Secretary Benjamin Diokno, some 194 flagship projects have been lined up in the six-year term of President Marcos which are estimated to cost a total of P9 trillion.

Diokno said another source of government funding is necessary as the price for the country’s graduation to an upper middle-income economy within the next two years.

By that time, the country will no longer be entitled to official development assistance for infrastructure.

Diokno has high hopes for the MIF, pointing out that sub-funds such as infrastructure and green funds could be created under it to further generate capital.

The MIF will be used to manage government financial assets. This will be an important feature for it to become a reliable source of funds, thus relieving the government of the constant need to borrow to cover budget deficits.

Congress approved the MIF bill last 31 May, creating the country’s first sovereign fund.

Aside from foreign institutions, the MIF can go into ventures with local conglomerates, economic managers said.

Economic managers said the MIF will be very transparent as the Maharlika Investment Corp. will be tasked to craft investment and risk management strategies where the public could see the possible returns of the projects.

All the projects will go through a procurement process and the only exemption will be on the technical aspect or the soliciting of technical advice.

Simply put, the MIF will create wealth instead of dissipating it, contrary to the false impression its critics want to project.

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Credit belongs to : tribune.net.ph