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Solon urges government agencies to save 5% of their budgets for subsidies.

TAGUIG, MANILA โ€“ Representative Alan Peter Cayetano of Pateros City said on Thursday that the national government should impose a required 5% savings rate across all agencies to earn PHP250 billion for cash assistance to Filipinos to help them cope with rising fuel prices.

Cayetano claimed in a press conference that out of the PHP250 billion, the government could give each Filipino family PHP10,000 in indirect financial aid while still having PHP50 billion in reserve reserves.

“Wala nang iiyak sa 5%,” says the speaker. (Napakaliit nyan) No agency will protest if it loses 5% of its revenue. He answered, “That’s a very small percentage).”

President Rodrigo Roa Duterte has authorized the proposal of the Department of Finance (DOF) to pay monthly subsidies worth PHP200 each to about 12 million underprivileged Filipinos for a year, according to Finance Secretary Carlos Domingez III.

Cayetano stated that adopting a mandated 5% savings rate in all government departments will be critical as the country cope with current challenges such as rising fuel prices and the Covid-19 outbreak, underlining that adjustments must be taken now rather than after the May elections.

“I admire the government’s efforts, butโ€ฆ we really need to do a lot better,” he remarked. “It is preferable to discuss solutions rather than problems (it is preferable to discuss solutions rather than problems). Everyone is aware of the problem; therefore, let us not act as if we are powerless since the government is not powerless.”

Far from being a handout, Cayetano claims that the “teach a guy to fish” strategy is important to alleviate immediate financial hardships and is preferable to piecemeal payments that would only last a few months.

He also stated that the government should make adjustments now rather than waiting until the next administration takes office, because by then, the government will have its own priorities and recovery plans.

“Kung ano ang usapan ngayon na ibibigay sa tao, pagdating ng susunod na administrasyon, maiiba din yan,” says the narrator. So, kung nabigay mo na yung limang libo, sampung libo, tapos na (Whatever help is settled upon now, things will alter after the new administration takes office.) So it’s done if you give PHP5,000 or PHP10,000 right now) “he stated

Wage subsidy of P500

From May to July, BHW Party-list Representative Angelica Natasha Co proposed giving all private-sector workers, including those in the informal sector, a PHP500 pay subsidy statewide.

On Mondays and Fridays, Co also advocated bringing back free bus rides on EDSA carousel buses, as well as free rail rides on Light Rail Transit, Metro Rail Transit, and Philippine National Railway.

“These are the types of solutions that Filipino families require right now and in the near future. These treatments are feasible and may be implemented quickly “Co remarked.

Dominguez recommended keeping fuel excise taxes and using the money raised to provide subsidies to households in the bottom half of society, as well as drivers and operators of public utility vehicles (PUVs), farmers, and fisherfolk.

“This is long-term. This is something that we can sustain and afford right now. So, Mr. President, I hope you would support these recommendations,” he stated on Wednesday morning during President Rodrigo R. Duterte’s Talk to the People.

Excise tax suspension is expected to cost the government PHP105.9 billion in 2022, PHP114.4 billion in 2023, and PHP123.6 billion in 2024, according to Dominguez.

“This is comparable to about half of one percent of our GDP (gross domestic product) for a 10-year average of PHP160.3 billion a year to a total of PHP1.763 trillion,” he added.

According to Dominguez, they aim to collect PHP131.4 billion in excise taxes and PHP15.8 billion in value added tax (VAT) this year, totaling PHP147.2 billion.

He said the money was set aside in this year’s national budget to cover a variety of obligations, including infrastructure and socioeconomic projects, as well as providing funding for state employee pay.

“As a result, that money has already been set aside.” And if we suspend this (the gasoline excise tax) and don’t collect it, our debt-to-GDP (gross domestic product) ratio will rise from a projected 7.7% to 8.2%,” he added.

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