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MANILA, Philippines — On Wednesday, the chair of the House Committee on Ways and Means said the PHP500 monthly subsidy for poor families may be supported from existing budgeted items, as well as augmentation of existing items funded by dividend remittances and other non-tax sources.

The government may pay the PHP500 aid during the fuel price crisis, according to Albay Rep. Joey Salceda, who noted that the budget is fungible as long as the government can create fiscal space in general through higher value-added tax (VAT) revenues.

“I am certain that we will be able to finance this relief while keeping our fiscal flexibility.” In a statement to reporters, Salceda said, “I continue to work with the BIR (Bureau of Internal Revenue) and the BOC (Bureau of Customs) to guarantee that we can remove tax loopholes and boost revenue collections utilizing existing tax laws.”

According to Salceda, the election restriction may have led some things to be discontinued, therefore the Department of Budget and Management will have to do a “sweep” to determine which items can be recognized as “savings.”

“I’m still in contact with the economic managers about this.” “I’m grateful that the President (Rodrigo Duterte) approved this advice,” he said. “UCTs (unconditional cash transfers) were an iteration we offered in November 2021.”

He did note, however, that some of the implementations will continue after June 2022.

As a result, the incoming administration will have to work closely with the existing economic team to ensure that these programs are appropriately transitioned and supported, he said.

“Fiscal space will also remain a top priority for the next administration,” he stated, “particularly given our pandemic-related fiscal restrictions.”

The monthly handouts, he claimed, will provide immediate relief to suffering Filipino families.

“We proposed this in a Committee session attended by economic agencies in November 2021, and we reiterated it during the first hearing of the Ad Hoc Committee on the Fuel Price Crisis, which I co-chaired.” “We applaud the announcement that it will be completed and funded,” he said.

Meanwhile, Taguig-Pateros City Rep. Alan Peter Cayetano has proposed that the national government implement an obligatory 5% savings rate across all agencies in order 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.

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, but… we really need to do a lot better,” he remarked. “Mas maganda na pag-usapan natin ang solusyon, hindi yung problema (It is preferable to discuss solutions rather than issues).” Everyone is aware of the problem; therefore, let us not act as if we are powerless since the government is not powerless.”

In response to criticism of the government’s proposal to offer a meager PHP200 monthly fuel subsidy to poor Filipino families in the wake of the fuel price crisis, Duterte said on Monday that he has authorized Finance Secretary Carlos “Sonny” Dominguez III to enhance the aid to PHP500.

Duterte remarked in a speech at Malacanang Palace that he received input “from the ground” that the PHP200 monthly cash assistance was “very modest” to support a family of three to five members.

“‘Pag hindi ngayon,’ they are the productive Filipinos of future” (if not now). So I told Sonny, ‘It’ll be an uphill battle for the next generation if we make it to PHP500,'” he recalled.

The decision to provide a monthly fuel subsidy coincided with Duterte’s decision to keep the excise duty on various fuel items.

According to the Department of Finance, the suspension of fuel excise duties will result in a substantial revenue loss of PHP105.9 billion, or roughly half of the country’s GDP this year.

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