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Philippines: Targeted subsidies for vulnerable sectors eyed under 2023 budget
MANILA, Philippines — The government is looking to propose subsidies for the vulnerable and the poor under next year’s budget to help those most affected by rising fuel and commodity prices.
Socioeconomic Planning Secretary Arsenio Balisacan told reporters yesterday the government would no longer be able to ask for additional funding for targeted subsidies this year and instead look at proposing subsidies under next year’s budget.
“Definitely for the 2023 (budget), we have a month to review the submission, and then we can suggest changes if necessary to Congress to capture priorities of the administration,” he said, noting this would include more targeted subsidies.
Asked if the same beneficiary sectors this year would be covered by the proposal, he said the aim is to direct the subsidies to those who deserve it the most – the poor and vulnerable.
“That way, we can protect poverty from going higher as we navigate the high price period,” he said.
The previous administration has rejected calls for the suspension of fuel excise tax and has opted to provide subsidies to the most affected sectors.
Finance Secretary Benjamin Diokno said the new administration would continue this approach, which is considered more efficient than reducing taxes.
Subsidies are provided to public utility vehicle drivers and farmers amid rising fuel costs. Also to be covered are the poorest of the population.
Last week, the Department of Budget and Management said a total of P6.2 billion has been released to cover the first tranche of the targeted cash transfer of the Department of Social Welfare and Development.
The cash subsidy will be given to beneficiaries from the poorest 50 percent of the population including those enrolled under the Pantawid Pamilyang Pilipino Program and social pension beneficiaries.
While Balisacan supports targeted subsidies, he also believes taxes will have to be raised eventually.
“But timing is very important. I think for essential commodities like power, you can’t raise taxes,” he said.
Balisacan said the Department of Finance is studying the fiscal consolidation plan from the previous administration.
“I would like to see that study by our colleagues completed because we would have to coordinate also with Congress for appropriate legislation,” he said.
Source: https://www.philstar.com/business/2022/07/05/2193020/targeted-subsidies-vulnerable-sectors-eyed-under-2023-budget