Recto’s proposal to sell NAIA land to raise funds draws mixed reactions

THE SALE and development of the land where the Ninoy Aquino International Airport (NAIA) currently stands could generate much-needed revenues for the government, the country’s top business group said.

On the other hand, some analysts warned that disposing state assets is not a long-term solution to address the country’s debt which stood at a record P14.79 trillion as of end-January.

This after Finance Secretary Ralph G. Recto last week floated the idea of selling the 600-hectare land where NAIA is located after the New Manila International Airport (NMIA) in Bulacan is completed, estimating that it could generate as much as P6 trillion.

“I think it is a good plan. In fact, the government might also want to extend the plan to also cover the Port of Manila,” Philippine Chamber of Commerce and Industry (PCCI) President Eunina V. Mangio said in a Viber message.

“Converting NAIA and the Port of Manila into a mixed-use development and putting a new airport in Batangas will also generate investments and employment in the areas,” she added.

Mr. Recto had noted the NAIA property can then be converted into a business district, similar to Bonifacio Global City.

PCCI’s Ms. Mangio said that the proposal to sell the NAIA land could also decongest Metro Manila, improve traffic, generate additional revenues and result in “better use of the area.”

“Developing another airport in the south outside of Metro Manila, Batangas being an option, may be funded from the proceeds of NAIA’s sale,” she said.

Meanwhile, Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, said that relying on the proceeds from the privatization of state assets to pay debt is not sustainable.

“Relying on privatization as a strategy to increase revenues is a temporary and lazy solution. The revenues are one-off. We have tried that route before and it did not decisively address the problem of low-tax effort,” he said via Facebook Messenger chat.

Ateneo de Manila economics professor Leonardo A. Lanzona also said this strategy does not address the overall fiscal constraints of the government.

“It needs to be stressed though that this is a short-term solution. While selling assets can provide a quick influx of cash, it might not address the underlying fiscal problems and could exacerbate long-term financial challenges,” he said in an e-mail.

“Selling public assets may result in reduced or compromised public services if the assets being sold are essential for service delivery, such as infrastructure or utilities,” he added.

The government is targeting to generate some P4.3 trillion in revenues this year to fund its priority programs.

As of end-2023, the deficit as a share of gross domestic product (GDP) settled at -6.2%, a tad higher than the -6.1% target set by the government but lower than the -7.3% deficit-toGDP ratio at end-2022. —