DSWD says cash transfers under tax plan not enough

THE DEPARTMENT of Social Welfare and Development (DSWD) said targeted cash transfers contemplated to offset lost entitlements under the tax reform programs will not be enough to offset the more expensive goods that will result from higher excise taxes.

DSWD Secretary Judy M. Taguiwalo said that the Finance department’s proposed P300 a month targeted transfer — which is valid for one year — is insufficient to protect the marginalized.

“Inflation in the past eight years has already eroded the real value of the cash grants. If at all, DoF’s planned additional P300 per month for one year will only cover the lost real value, not the price increases,” said Ms. Taguiwalo.

Ms. Taguiwalo was referring to the revival of the Pantawid Pasada Program proposed by the Department of Finance (DoF), which is aimed to minimize additional transport and household costs from increasing excise taxes on petroleum.

The DSWD Secretary added that there will be a time lag before the cash transfers are received by the beneficiaries, saying that administrative problems will contribute to the backlog.

“The DoF proposes cash transfers to 10 million households and cash cards to public utility vehicles for one year. This scenario is as ominous as it is demeaning to Filipinos,” said Ms. Taguiwalo.

“We cannot fathom allowing a year of long queues for card applications, for cash payouts, for grievances and complaints of loan sharks waiting for willing prey, of local and national government offices turning into markets during cash payouts. And what to do about those who will be excluded from the cash transfers due to the arbitrary target and inherent errors in the targeting system,” she said.

Deputy Speaker Gloria M. Macapagal-Arroyo however told the DSWD chief that the imperfect administrative system of the cash transfers should be addressed to the Cabinet.

Ms. Arroyo implemented the 4Ps in 2008, which was intended as a health and education incentives program.

Ms. Taguiwalo added that additional costs from excise taxes will slow down the delivery of its frontline services to the poor.

Meanwhile, Finance Undersecretary Karl Kendrick T. Chua said that higher taxes on cars and fuel will not erode the gains from additional employment brought by the government’s automobile incentive program. —