P4B more 'Katas ng VAT'
Second outlay in as many quarters

BY JOCELYN MONTEMAYOR

PRESIDENT Arroyo yesterday ordered a second outlay of P4 billion earned from the value-added tax on oil spent for the upgrade of government hospitals, rehabilitation of calamity-stricken areas, and provision of subsidies for "lifeline" electricity users and microfinance assistance for the transportation sector.

The allotment is part of the so-called "Katas ng VAT" program, she said at the National Disaster Coordinating Council Cabinet-level meeting in Placer in Masbate.

Of the P4 billion, which was collected from April to June, P1 billion would be for the electricity subsidy, P1 billion for assistance to the transportation sector, P1 billion for calamity-stricken areas, P500 million for the government hospitals, and P500 million for senior citizens programs.

The first P4 billion in excess revenues, which was collected in the first quarter, was spent for the lifeline users (P2 billion), conversion of diesel-engine public utility vehicles to liquefied petroleum gas- or compressed natural gas-enabled engines (P1 billion), student loans (P500 million) and the remaining P500 million for the shift from incandescent bulbs to fluorescent bars in government offices and public places including public hospitals, markets, schools, and streets.

Budget Secretary Rolando Andaya said the "Katas ng VAT: Pantawid Kuryente" program would benefit two million families consuming not more than 100 kilowatts of electricity a month.

He said senior citizens who would be given subsidy are those at least 75 years old and not covered by the General Service Insurance System or the Social Security System.

The microfinance program will be available to the wives or immediate families of drivers and conductors of public utility vehicles.

Andaya, addressing criticisms that the VAT programs are not sustainable, said: "These are windfall revenues. This is something which we never expected to happen. That's why by nature it's not sustainable because it's a windfall revenue. That's why what we are doing is to give it to those who need it the most, those who would feel the benefit immediately."

Press Secretary Jesus Dureza said "to enhance transparency, accountability and effectiveness of these programs," Finance Secretary Margarito Teves recommended that government invite the Catholic Bishops Conference of the Philippines and religious groups like El Shaddai and Iglesia ni Cristo in identifying, implementing and monitoring the pro-poor programs.

He said the social welfare department will also consult with the CBCP for an "initiative to establish database of poor for targeted subsidy programs."

Bishop Deogracias Iñiguez said the CBCP is not dropping its call for the government to review the VAT policy.