MANILA – Taguig-Pateros City Representative Alan Peter Cayetano on Thursday said the national government should institute a mandatory 5 percent savings across all agencies to raise PHP250 billion that can be used to provide cash aid to Filipinos to help them cope with the rising fuel prices.
In a press conference, Cayetano said of the PHP250 billion, the government can distribute PHP10,000 indirect financial aid to each Filipino family and still have PHP50 billion leftover as standby funds.
“Wala nang iiyak sa 5 percent. Napakaliit nyan (No agency will complain about losing 5 percent. That’s a very small percentage),” he said.
On Wednesday, Finance Secretary Carlos Domingez III said President Rodrigo Roa Duterte had approved the proposal of the Department of Finance (DOF) to provide monthly subsidies worth PHP200 each to around 12 million poor Filipinos for one year.
Cayetano said instituting a mandatory 5 percent savings in all government agencies would be crucial as the country deals with current crises like the fuel price hikes and Covid-19 pandemic, emphasizing that changes need to be made now and not after the May elections.
"I appreciate the efforts of the government but... we really have to do much, much better," he said. "Mas maganda na pag-usapan natin ang solusyon, hindi yung problema (It’s better to talk about solutions, not problems). Everyone knows the problem so let's not act as if we're helpless because government is not helpless.”
Cayetano said far from being a dole-out, the "teach a man to fish" approach is necessary to cover pressing financial burdens and is better than piecemeal amounts that would last families only a short time.
He also said the government must institute changes now and not wait until the next administration comes to power because by then, the government will have its own focus and plans for recovery.
“Kung ano man ang usapan ngayon na ibibigay sa tao, pagdating ng susunod na administrasyon, maiiba din yan. So, kung nabigay mo na yung limang libo, sampung libo, tapos na (Whatever is decided to give as aid now, when the new administration comes in things will change. So if you give PHP5,000 or PHP10,000 now, it’s done)," he said.
P500 wage subsidy
For her part, BHW Party-list Representative Angelica Natasha Co suggested granting a PHP500 wage subsidy to all private sector workers, including those from the informal sector, nationwide from May to July.
Co also proposed the return of free bus rides on EDSA carousel buses, as well as free rail rides on Light Rail Transit, Metro Rail Transit, and Philippine National Railway on Mondays and Fridays.
"These are the kinds of solutions Filipino families need now and in the coming months. These interventions are doable and can be swiftly deployed," Co said.
Dominguez proposed the retention of excise taxes on fuel and use the money to be collected to extend subsidies to households belonging to the bottom 50 percent of the society, as well as drivers and operators of public utility vehicles (PUVs) and farmers and fisherfolk.
“This is sustainable. This is something that we can sustain and something that we can afford at this time. So I hope that, Mr. President, you will support these recommendations,” he said during President Rodrigo R. Duterte’s Talk to the People aired Wednesday morning.
Dominguez said estimated revenue losses from excise tax suspension are around PHP105.9 billion in 2022, PHP114.4 billion in 2023, and PHP123.6 billion in 2024.
“For the 10-year average of PHP160.3 billion a year to a total of PHP1.763 trillion for 10 years, this is equivalent to roughly one-half of 1 percent of our GDP (gross domestic product),” he added.
Dominguez said they expect to collect PHP131.4 billion from excise taxes and PHP15.8 billion from value added tax (VAT), or a total of PHP147.2 billion for this year.
He said this amount has been allocated under this year’s national budget to finance various expenses, such as the infrastructure and socioeconomic programs, as well as provide financing for salaries of state workers.
“So that money has already been allocated. And if (we) suspend this (the excise tax on fuel products) and we don’t collect it, what will happen is our debt-to-GDP (gross domestic product) ratio will go up from an estimated 7.7 percent to 8.2 percent,” he added. (PNA)
