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  • House appropriations panel chief backs subsidy
     
    By Fernan Marasigan, Reporter
    and Jonathan Mayuga, Correspondent

    THE chairman of the House Committee on Appropriations validated the contention of Budget Secretary Rolando Andaya Jr. that Congress has preapproved the government’s P4-billion fund release for subsidies to the poor and other sectors.

    “Subsidies to the poor as socioeconomic amelioration measures are valid and authorized under the 2008 General Appropriations Act [RA 9498],” said Lakas Rep. Edcel Lagman of Albay in a statement.

    Lagman sustained the legality of the conditional cash transfers for small electricity users, fertilizer discount vouchers for farmers, scholarship grants to deserving students and transport assistance for LPG engine conversion of public utility vehicles (PUVs).

    He said the annual GAA enacted by Congress consists traditionally of programmed appropriations and unprogrammed funds.

    He explained that “unprogrammed funds are in the nature of lump-sum contingency allocations or standby funds, the utilization of which is anticipated and/or unexpected and can be availed of when revenue collections exceed the original revenue targets.”

    Lagman said the subsidies for the poor are necessitated by the present global economic crunch and are funded from the unprogrammed appropriations like, among others, “Support to Infrastructure and Social Programs” provided for under A.5 of XLIX of the GAA on “Unprogrammed Fund.” The windfall value-added tax (VAT) collections as a result of the increase in the price of oil justified the release of funds under the unprogrammed fund for support to social programs, he added.

    Lagman said the amounts to cover the subsidies were released to the appropriate implementing agencies like the Department of Social Welfare and Development (DSWD), Department of Agriculture (DA), Commission on Higher Education (CHED) and Department of Transportation and Communications (DOTC). These have the proper existing programs like Ahon Pamilyang Pilipino (DSWD), Ginintuang Masaganang Ani (DA), Student Assistance Fund for Education (CHED) and Special Vehicle Pollution Control Fund (DOTC), whose respective allocations were accordingly augmented.

    Meanwhile, the cash doles to the poor could help prime the economy, aside from mitigating poverty, according to National Antipoverty Commission Secretary Domingo Panganiban, as he defended the government’s programs that provide cash and noncash subsidies and discounts on prices of selected items, such as rice, canned goods, noodles and lately, cooking oil.

    These programs include the food-for-work and school-for-work programs, wherein qualified poor students are provided with a kilo of free rice every day to encourage their parents to send them to school; the P3.5-billion PhilHealth cards distributed by the Department of Health (DOH); the P2-billion Meralco lifeline users’ cash subsidy; and the P5-billion conditional cash transfer of P800 to couples with maximum children of three who attend seminars on family planning.  In addition, the couple will also receive P300 for each child they send to school.  A total of 144,000 families will benefit from the conditional cash transfer project.

    So far, a total of 185,000 families have received the P500 cash subsidy by simply presenting their Meralco bill to Land Bank branches nationwide after being validated by the DSWD.

    Aside from Metro Manila, the program will soon cover the poorest of the poor in the country’s 15 poorest provinces. The National Food Authority (NFA) through its Tindahan ni Gloria outlets is also selling cheap rice, canned goods, noodles and cooking oil at discounted prices.  

    Lately, the NFA has limited the distribution of the NFA rice, which only costs P18.25, and the NFA’s imported rice from the US, which only costs P25, to those with access cards.  So far, Marikina and Pasay have issued a list of beneficiaries under the program. 

    According to Panganiban, such programs were meant to make food accessible to the poor during these trying times, when prices are soaring. While it may not be called sustainable, he said it will nevertheless help prime the economy. 

    Panganiban said such cash subsidies, like the P500 subsidy to Meralco’s lifeline users whose monthly consumption is below 100 kwh, help the poor cope with high prices, thus allowing money to change hands.

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