P1K inflation aid for poor readied

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The government is considering to implement another round of cash aid to the “poorest of the poor” to mitigate the impact of the high inflation rate.

Finance Secretary Benjamin Diokno said the government has already identified the funding source for the planned extension of the targeted cash transfer (TCT) which will require P9.3 billion.

“Right now, we’re considering the two-month subsidy for consumers. (It will be a) continuation of the TCT,” Diokno told reporters on the sidelines of the 2023 Annual Reception for the Banking Community held in Manila last Friday evening.

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“(We will) announce soon. I think we have already identified the funding source, we’re just waiting for the announcement from the Palace,” he added.

Diokno said the program will benefit some 9.3 million beneficiaries which will translate to P1,000 each.

Meanwhile, the finance chief said the inflation rate for February could still be around the previous month’s level although “definitely lower than January.”

“Price of oil has stabilized, peso has stabilized, it’s just the food, we really have to focus on food items. Not just importation, but the food has to reach the market,” Diokno said.

Last week, Diokno said the executive department and local government units (LGUs) should intensify the implementation of more direct, non-monetary measures to help address the supply issues.

“The monetary authorities have done their part. The executive department, including LGUs, have to do more, be more aggressive and focused,” Diokno said.

“In the fight against inflation, monetary policy is not the only game in town. The main sources of inflation remain on the supply side, which should be the responsibility of fiscal authorities. While evidence of second-round effects is increasing, the previous direct actions by government agencies have yet to work through its way,” he added.

After identifying some of the government’s recent initiatives, Diokno said the timely importation of food items in short supply is “not enough.”

“There has to be a focused effort to ensure that the imported goods reach the intended markets as soon as possible. The Bureau of Customs should release the imported food items with the same sense of urgency that we have given the importation of COVID-19 vaccines. Local authorities should facilitate, not impede, the movement of essential food items to the intended markets. Restricting free movement of essential food item is one sure way of prolonging inflationary pressures,” Diokno said.

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