BY GERARD NAVAL

THE Catholic Bishops Conference of the Philippines yesterday called for transparency on the use of funds being allotted by the government to its pro-poor programs.

Archbishop Angel Lagdameo, CBCP president, said the government should be open to scrutiny over the subsidies to ensure that the billions of pesos indeed goes to the intended beneficiaries and "not the pockets of some officials."

Lagdameo asked the public to be vigilant on how the money is disbursed.

"Kailangan nating bantayan kung nagagamit ang pera sa mabuting paraan. Mahalagang magkaroon ng accounting at transparency sa pagbibigay ng subsidy," Lagdameo said.

Among the pro-poor programs are the one-time P500 subsidy for "lifeline" electricity consumers, scholarships and loans to students, and loans for public transport drivers. These were funded by P4 billion from excess revenues collected from the value-added tax in the first quarter.

The government set aside another P4 billion for its "Katas ng VAT" programs. The second allocation came from excess VAT earnings collected in the second quarter.

Questions have been raised on the constitutionality of the government's use of the incremental VAT earnings to the Supreme Court.

Lagdameo reiterated the Church position that subsidies are not a long-term solution to poverty.

"Ito'y panandalian lamang na pagtugon sa pangangailangan ng mga mamamayan. Tinuturuan lang natin ang mga mamamayan na umaasa at maging tamad," he said.

Social Welfare Secretary Esperanza Cabral said the subsidies reach the intended beneficiaries. Cabral's department is tasked to oversee the subsidy programs.

President Arroyo continued to defend the VAT. She said without it, the government would not have been able to prepare for the world crisis of rising prices of oil and food.

"The global crisis did not catch us unprepared or without reserves," she said in Baguio City during the formal merger of the Cordillera Administrative Region chapters of Lakas-CMD and Kampi.

Arroyo said her government for two years prepared the country for the global belt tightening "first by increasing food productivity, second, by increasing the ability to buy the food with bigger incomes and smaller income tax bites."

She said because of the VAT and other revenue reforms, the Philippines now has the cheapest rice and oil in the region.

The President said commercial rice in the Philippines now sells at an average of P35 a kilo, while it sells at P95 a kilo in India, P56 in Thailand, P67 in Vietnam, and P45 in Singapore.

She said the government-subsidized rice that is sold by the National Food Authority at P18.25 a kilo is also the cheapest. She said subsidized rice in India sells it P25.30 a kilo while in Malaysia it costs P27 a kilo.

Arroyo said even diesel oil in the Philippines remains among the cheapest compared to other countries, attributing it to the zero tariff rates on oil imports and the continued strength of the peso against the dollar.

On continuing calls for the scrapping of the 12 percent VAT on oil, Arroyo said "we have to carefully address some hard questions," like where the government would get up to P80 billion that it is being used for the pro-poor programs.

She reiterated that lifting the VAT would erode investor confidence, accelerate the rise in interest and exchange rates, and raise the cost of living.