DOF chief Dominguez: “We realize that this is not enough. But this is what we can afford, as of this time”
(Eagle News) – President Rodrigo Duterte has approved the recommendation of the Department of Finance to provide P200 additional subsidy per family per month for 12 million low-income households in the Philippines, or a total of P33.1 billion.
Malacanang said this on Wednesday, March 16, as the DOF pressed for more benefits to be given to targeted population that would be most affected by the recent oil price hikes due to the tensions between Russia and Ukraine.
-Fuel excise tax to remain-
Presidential Spokesperson Martin Andanar said that President Duterte also agreed to retain the excise tax for fuel imposed under the TRAIN law because this was already “budgeted,” meaning funds coming from the excise taxes are already lined to provide budget for various government projects this year.
Andanar said that suspending the fuel excise tax would also mean reducing government revenues by as much as P105.9 billion that already provide funds for government programs.
“Inaprubahan ng Pangulo ang dalawang rekomendasyon ng Department of Finance (DOF) kaugnay sa pagtaas ng fuel price: Una, ang pag-retain ang fuel excise taxes na ini-impose ng TRAIN Law, dahil ang pagsuspinde nito ay magri-reduce ng government revenues ng 105.9 billion pesos na magpupondo sa mga programa ng pamahalaan,” Andanar said in a Palace press briefing.
“At pangalawa, ang pagbibigay ng targeted subsidies ng dalawandaang piso bawat household to the bottom 50% of Filipino households,” he said.
Andanar said that the National Economic and Development Authority (NEDA) also supported the DOF’s recommendation for “targeted relief for vulnerable sectors.”
-Additional subsidies for low income households to amount to P33.1 billion –
Finance Secretary Carlos Dominguez estimated that there are 12 million households who are at the bottom 50 percent of Philippine households.
This would amount to P33.1 billion in unconditional cash transfers to about 74.7 million Filipinos for the first year.
“This is in addition to what they are already receiving,” Dominguez told President Rodrigo Duterte during the latter’s Talk to the People on Tuesday night, March 15.
Because of this, low-income families would get a total of P2,400 for 1 year in addition to what they are already receiving in government subsidies.
“Mr. President, we realize that this is not enough. But this is what we can afford, as of this time,” Dominguez said.
(Eagle News Service)