Cash aid should continue as inflation faster for poorest 30% of households —IBON

The government needs to continue releasing cash subsidies as inflation in May was faster for the poorest 30% of households than the national average, research group IBON said Wednesday.

According to IBON, the continued increase in prices of consumer prices warrants the continued cash subsidies such as the social amelioration program (SAP).

"Rising prices especially for the poorest affirms the urgency of continued income support," it said in a statement.

"The number of beneficiaries getting the second tranche of emergency subsidies should not be limited.," it added.

The qualified beneficiaries for SAP’s second tranche are the family-beneficiaries of the first tranche that are under enhanced community quarantine (ECQ) as of May per Executive Order No. 112, series of 2020, and a Memorandum from the Office of the Executive Secretary dated May 2. 

On Wednesday, the Philippine Statistics Authority (PSA) reported inflation at 2.5% in May, the first acceleration after four consecutive months of deceleration.

Inflation for the 30% poorest households, however, was higher than the national average at 3.0% during the month.

"This means that the cost of living is rising fastest for the country's poorest households," IBON said, "this is troublesome for millions of poor families suffering interrupted incomes and stingy emergency relief."

In the same statement, IBON hit back at the qualifications for the public to receive a second tranche of the SAP, which provides financial assistance to households affected by the lockdowns.

"With the cost of living fast rising amid an even worsening pandemic, limiting the number of beneficiaries getting the second tranche of emergency aid is unconscionable," said IBON.

"The government should even consider additional tranches for vulnerable households that continue to reel from lost livelihoods and income," it added.

Just last week, the Social Security System (SSS) said the Small Business Wage Subsidy program fell short of achieving its target to provide assistance to 3.4 million workers in the formal sector.

According to SSS president and chief executive officer Aurora Ignacio, only 91% of the target 3.4 million employees were able to receive the assistance.

The SBWS program which aims to provide 3.4 million workers in the formal sector P5,000 to P8,000 in assistance, depending on the minimum wage level in the area.

The workers are employed by some 1.4 million businesses that were either forced to shut down or can only operate on limited capacity due to the quarantines imposed to curb the spread of the coronavirus. — Jon Viktor D. Cabuenas/BM, GMA News