BY JP LOPEZ

THE Senate committee on economic affairs will examine projects identified in the National Social Welfare Program, which President Arroyo will launch during her state of the nation address on July 28, panel chair Sen. Loren Legarda said yesterday.

She said President Arroyo should exercise "prudence" with the government's finances.

"These finances are not to be used as political vehicles to cloak the gaining unpopularity of the administration." Legarda said.

"While measures that aim to provide short-term relief are indeed necessary, we should stress that the government must consider economic structuring as part of the long-term solutions that will effectively cushion the people from negative economic shocks and decrease vulnerability in situations such as these in the future," she said.

Legarda has filed Senate Resolution No. 444 which seeks to determine whether government subsides on fertilizer, fuel and electricity are reaching their intended beneficiaries.

She noted public apprehension that these subsidies serve a political purpose, and "that they are bannered as if the government is Robin Hood giving to the poor."

According to Legarda, the subsidies are wealth transfers from the taxes imposed on the people, and should be equitably expended so that the majority and most disadvantaged would benefit.

The committee will also look into the government's plans to spend on subsidies to mitigate the painful effects of the rising cost of living, to determine their effectiveness.

"We have forgotten to put money where it should be, particularly on the agriculture sector, which is the country's economic backbone. Investments should still be in place to ensure that the country progresses amidst this global economic downturn," she added.

Legarda also sought a Senate inquiry into irregularities and overspending allegedly committed by Malacañang.

She cited an annual report of the Commission on Audit for the fiscal year 2007 wherein "the Office of the President has allegedly made irregular transactions such as unliquidated cash advances, "loans without records, donations diverted to uses not prescribed by donors, understated expenses and overstated accounts."

The COA reports, Legarda said, showed that Malacañang spent "scores of millions in travel expenses, maintenance costs, and other miscellaneous expenses as opposed to the minute and to some extent, zero disbursements in training, textbook and instructional materials, hazard pay," among others.

The President reportedly spent a total of P588.5 million for foreign and P34.1 million for domestic travels.

"This is scandalous misspending of public funds no matter how they rationalize it. We ask the people to tighten their belts when the government itself cannot do the same amid worsening economic conditions."