Arroyo orders consolidation of pro-poor programs

MANILA, Philippines - President Gloria Macapagal-Arroyo on Tuesday ordered the consolidation of social welfare programs to ensure that the poorest sectors would benefit from them amid rising prices of goods. "The National Anti-Poverty Commission will form a national program for social welfare. The existing programs of DSWD (Department of Social Welfare and Development), DoH (Department of Health), GSIS (Government Service Insurance System), SSS (Social Security System) and other agencies providing social welfare services shall be clustered into a National Social Welfare Program that directly addresses the impact of the adverse global environment," the President said in a Cabinet meeting in Malacañang. After the meeting, Mrs. Arroyo formalized her directive under Administrative Order (AO) 22 entitled "Social Welfare Reforms." Under the order, the work of clustering shall be headed by the SSS administrator, who was given a Cabinet rank. In a chance interview, Press Secretary Jesus G. Dureza said the AO will allow better coordination among social welfare agencies. Socioeconomic Planning Secretary Augusto B. Santos said the AO will put structure to existing projects. "It is like defining elements of social protection, social welfare, labor market intervention and social safety net." Mr. Santos noted that around 20% of the P1.227-trillion budget was allocated for social services. In a separate interview, Budget Secretary Rolando G. Andaya, Jr. said the agency heads will still decide how their respective budgets will be spent. Mr. Andaya said around P45 billion was allotted by agencies to uplift the poor, excluding the funds of SSS and GSIS. He added the consolidated program also seeks to guard against loopholes in pro-poor programs. The government earlier allotted P4 billion from the value-added tax on oil to mitigate the impact of rising fuel and food prices. Half of this was used to provide electricity subsidies to small users, while P1 billion was allotted for student loans and scholarships. The remaining P1 billion was used to fund interest-free loans to transport operators who wish to convert their engines to make them more energy-efficient. Officials preciously said it may spend P14.6 billion in subsidies this year. Mr. Santos said the government is open to provide more subsidies due to continuous price increases. "Prices are continuously increasing. We are projecting 7% to 9% inflation outlook this year against the earlier approved 3% to 5%." — Alexis Douglas B. Romero, BusinessWorld