Hello high inflation, goodbye e-sabong
Long live the roosters! (Photo: Manila Bulletin)
Earlier this week, forecasts for April inflation predicted a rate above 4%. Turns out the experts were spot on.
The Philippines’ inflation rate hit 4.9% in April, a 0.9-percentage-point increase from the 4% recorded last March. The Philippine Statistics Authority’s latest figure is the highest since January 2019, as rising oil prices continue to rise due to the Russia-Ukraine war, pushing up the costs of other commodities.
According to the World Bank, food, fuel price shocks from the Ukraine war will last at least until the end of 2024.
Unsurprisingly, economists are saying that the price growth going above the government’s target of 2% to 4% for 2022 could really mess up the economy’s recovery.
“Further acceleration of inflation prints in 2Q and 3Q2022 will clearly cap the economy's growth potential this year as consumers, compelled to allocate a bigger share of their budgets toward basic goods and services end up spending less on discretionary items,” said Jun Neri, lead economist at Bank of the Philippine Islands.
While this news is alarming, some say that a little inflation is acceptable if we consider growth, as inflation can be attributed to the rise in government expenditures.
So with the government capping off the month of March with liabilities amounting to P12.68 trillion, I guess it’s safe to say that priorities are on growth rather than fighting inflation.
To be fair, the Duterte administration’s spending spree was necessary to fund a large budget deficit within the state’s coronavirus response. But according to Finance Secretary Carlos Dominguez III, the economy would need to grow over 6% in the next five to six years to reduce the debt stock. And that would be a huge mountain to climb.
RIP e-sabong
Last week, state-owned Philippine Amusement and Gaming Corp. (Pagcor) posted a double-digit rise in gambling revenues in the first three months of the year. A huge contributor to that revenue? E-sabong, which has been contributing about P640 million a month through fees.
Not anymore. President Rodrigo Duterte has ordered a stop to e-sabong, following the disappearance of more than 30 cockfighters and mounting complaints about its unpleasant repercussions on families and society.
In his weekly public address, the President said this decision was based on the findings of a survey regarding the social impact of e-sabong on Filipinos.
“It might not be a sophisticated survey, but still it is a survey. And the recommendation of Secretary Año is to do away with e-sabong and he cited the validation report coming from all sources. So it’s his recommendation and I agree with it and it is good. So e-sabong will end by tonight or tomorrow,” the president said.
Maybe our president isn’t as hard-fisted as he appears. Or maybe he has a different agenda?
Regardless of his motive, the order is being lauded by international animal rights group People for the Ethical Treatment of Animals (PETA).
"The end of e-sabong is long overdue, especially as interest in the archaic bloodbath continues to wane in recent years. PETA commends President Rodrigo Duterte’s decision to order the immediate termination of e-sabong across the Philippines," said PETA Senior Vice President Jason Baker.
This doesn’t bode well for Pagcor though, as it stands to lose up to P5 billion in revenue this year. But Malacañang expressed confidence that Pagcor can find alternative sources of revenue following the end to e-sabong operations in the country.
It’s interesting though, that just a month ago, Duterte defended e-sabong, citing the billions of pesos earned from its operations. I wonder what changed.
