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Wednesday, July 16, 2008
Arroyo announces release of another P4B subsidy
MANILA -- President Gloria Macapagal-Arroyo said another P4 billion earnings from the expanded value-added tax (VAT) on oil for the months of April to June would be released.
Arroyo, during Tuesday's National Disaster Coordinating Council (NDCC)-Cabinet meeting in Placer, Masbate, said the second batch of "Katas ng VAT" program would be used for the upgrading of government hospitals.
Arroyo Watch: Sun.Star blog on President Arroyo
It will also be used to rehabilitate calamity-stricken areas and provide subsidies for lifeline users and microfinance assistance for the transportation sector.
"We will continue allocating funds for sectors mostly affected by the rising prices of oil and basic commodities," she said.
An initial P4 billion in excess revenues from the first quarter was also allocated by the government for different subsidies.
It will include the P2 billion to finance the one time P500 subsidies for about four million lifeline power users; the P500 million for student loans and P500 million for college scholarships; and the P1 billion to finance the conversion of diesel-engine public utility vehicles into liquefied petroleum gas or compressed natural gas enabled engines.
Another P500 million had later been allocated by President Arroyo to finance the shift from incandescent bulbs to fluorescent bars in all government offices and public places including public hospitals, markets, schools, and streets.
Budget Secretary Rolando Andaya Jr. said the amount would be sourced from a P4 billion excess revenues from VAT on oil in the second quarter, which according to him, is basically generated from the rich or those that could afford to pay.
"This is a response of the government in bringing back what we have collected in terms of VAT on oil. It is taking the VAT collection from those that are able to pay for it, or short of saying those who are rich, and in turn giving it back to the needy," Andaya said.
He said of the P4 billion amount, P1 billion would be used to sustain the "Katas ng VAT: Pantawid Kuryente" program that would benefit two million families consuming 100 kilowatt or less per month.
The P500 million to provide subsidy for senior citizens aged 75 years old or above who are not covered by the Government Service Insurance System or the Social Security System, and another P500 million for the upgrading of government hospitals from primary to secondary level.
Andaya said the P1 billion would go to a microfinance program for the wives or immediate families of the drivers and conductors of public utility vehicles and the remaining P1 billion for infrastructure rehabilitation of Panay Island and other provinces hit by Typhoon Frank (international codename: Fengshen).
He reiterated that there is nothing unconstitutional about the "Katas ng VAT" programs as it has already been pre-authorized by Congress when it passed the 2008 budget.
"These are windfall revenues. This is something we never expected to happen. That's why by nature it's not sustainable because it is windfall revenue, it's not part and parcel of what we planned. That's why we are going to give it to those who need it the most, those who would feel the benefit immediately," added Andaya. (JMR/Sunnex)
For more Philippine news, visit Sun.Star Pangasinan. (July 16, 2008 issue)
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