Duterte approves P200 monthly subsidy for poor households

President Rodrigo Duterte has approved the Department of Finance's (DOF) proposal to provide a P200 monthly subsidy, or "ayuda," to the bottom 50% of poor households for one year.

This unconditional cash transfer aims to mitigate the impact of rising fuel prices.

Finance Secretary Carlos Dominguez III acknowledged that the subsidy may not be sufficient but stated it is what the government can afford, requiring P33.1 billion in budgetary allocations.

The government will also retain fuel excise taxes imposed by the TRAIN Law, as suspending them would reduce government revenue by P105.9 billion, impacting funding for various programs.

The funds for the subsidy are expected to be sourced from increased value-added tax (VAT) collections.

Guidelines for the distribution of the subsidy will be released by the Department of Budget and Management.