DBM to find way to fund P1,000 monthly pension for indigent seniors —exec

Published August 06, 2022 09:37 AM By TED CORDERO,GMA News

The Department of Budget and Management (DBM) will work on identifying funding sources for the increase in the monthly social pension of indigent senior citizens from P500 to P1,000, despite the government being in a tight fiscal position, a top official of the DBM said Saturday.

“To be honest, we are in a very tight fiscal position due to muted revenue caused by the pandemic. Ibig sabihin po niyan kakaunti na lang ‘yung ating legroom para sa pag-accommodate ng mga bagong proyekto (This means we have a very tight legroom to accommodate new projects),” DBM Undersecretary Goddes Hope Libiran said in an interview on Dobol B TV.

Data from the Bureau of the Treasury showed the government’s fiscal performance in June yielded a deficit of P215.5 billion

, wider by 43.81% year-on-year, as state spending exceeded revenues during the period. 

The Budget official, however, said that since the measure is now a law, Budget Secretary Amenah Pangandaman ordered the agency to find ways to fund the program.

Early this week, Senator Joel Villanueva disclosed that that the bill doubling the monthly social pension of indigent senior citizens has lapsed into law last July 30. 

Under Republic Act 11916, private entities that will have senior citizens as employees shall be entitled to an additional deduction from their gross income, equivalent to 15% of the total amount paid as salaries and wages to senior citizens subject to the provision of Section 34 of the National Internal Revenue Code as amended.

“DBM will find the way to fund this program,” Libiran said.

“Buo naman po ang suporta ng DBM sa mga ganitong klase ng proyekto lalo na po kung ang layunin nito ay makatulong sa mga nangangailangan,” she said.

(The DBM fully supports programs such as this one, especially it aims to help those in need.)

Based on consultations with senior budget officials, the increased social pension for the elderly program can be funded through the miscellaneous personnel benefits fund (MPBF), pension gratuity fund, or unprogrammed funds, Libiran said.

“Ire-recompute ang mga budget on that at kapag may excess, then we can realign that at ilagay sa budget ng DSWD (Department of Social Welfare and Development) para doon sa programa,” she said.

(These will be recomputed and if there is an excess, then we can realign that and put it in the budget of the DSWD for the program.)

The law mandates the DSWD, as the implementing agency, to review and when necessary, adjust the amount of social pension every two years after the effectivity of the law, subject to the approval of the DBM and in consultation with other stakeholders.

The DBM official said the DBM will wait for the law’s implementing rules and regulations to be made by the National Commission of Senior Citizens in consultation with DBM and DSWD as well as the validated list of beneficiaries so that the Budget Department can allot funds for the program.

In May, the Senate approved on third and final reading the proposed Act Increasing the Social Pension of Indigent Senior Citizens and Appropriating Funds Therefor.

The House of Representatives adopted the Senate version of the bill.

In an interview with reporters, Villanueva said around 4.085 million indigent senior citizens will benefit from this law.

He expressed confidence that the government has resources to fund the law which might require around P22 billion to P24 billion annually.

According to Villanueva, the government can source the funding from sin taxes, revenues from TRAIN Law, CREATE Law, and Philippine Offshore Gaming Operators. —KG, GMA News

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