Wednesday, July 23, 2008 Gov't to release VAT subsidy for hospitals upgrade
PRESIDENT Gloria Macapagal-Arroyo on Tuesday launched the P500 million "Katas ng VAT (value-added tax): Para sa Maliliit na Ospital," intended to fund the improvement of primary government hospitals to secondary care level to better serve the public especially the poor.
During the launching of the program held in Datu Odin Sinsuat, Maguindanao, Arroyo said the P500 million would come from the P4 billion, second quarter excess VAT earning from April to June.
She added that they chose to hold the launching in Maguindanao Province to stress that the government prioritizes areas with high incidence of poverty.
Maguindanao is one of the 10 poorest provinces in the country, which also include Zamboanga del Norte, Surigao del Norte, Surigao del Sur, Agusan del Sur, Misamis Occidental, Lanao del Norte, Mountain Province, Masbate and Biliran.
The President said the fund would be used to purchase equipment like X-ray machines, laboratory diagnostic equipment and other needed instruments to improve the operating rooms.
She said the purchase of the equipment would enable primary hospitals like the Datu Odin Sinsuat Hospital to conduct simple operations and surgery including caesarian deliveries.
Arroyo said aside from the hospitals upgrade, P1 billion of the excess VAT earnings would go to the P500 subsidy for two million lifeline power users or those who consume 100 kilowatt of electricity or less for a month; P500 million for a P500 subsidy for senior citizens aged 75 years old and above that are not covered by the General Service Insurance System or Social Security System pensions; and a P500 million microfinance capital for the wives and immediate family of drivers and conductors of public utility vehicles (PUVs).
The rest of the P4 billion VAT excess earnings or about P1 billion would also go to the rehabilitation of typhoon-devastated provinces like Panay Island and parts of Mindanao.
A similar P4 billion "Katas ng VAT" program funded through the first quarter excess VAT earnings was also implemented by the government where P2 billion went to the lifeline user; P1 billion to the college scholarship and student loan programs; P500 million to the conversion of diesel-engine PUVs into liquefied petroleum gas or compressed natural gas enabled engines; and P500 million to the shift from incandescent bulbs to florescent lights. (JMR/Sunnex)
