In a recent briefing at Malacañang, President Ferdinand Marcos Jr. instructed the Department of Social Welfare and Development (DSWD) to develop “self-adjusting mechanisms” for the government’s cash subsidy program. The aim is to ensure that beneficiaries are protected from the effects of high inflation. This move comes as part of the administration’s commitment to providing sustainable financial aid, such as the Pantawid Pamilyang Pilipino Program (4Ps), and shielding recipients from future economic factors like inflation.
DSWD Secretary Rexlon Gatchalian highlighted that their task is to collaborate with the Philippine Statistics Authority (PSA) and the National Economic and Development Authority (NEDA) to determine the most appropriate index to use. This index will help maintain the value of the cash assistance provided through programs like 4Ps, ensuring that no one is left behind during periods of inflationary spikes.
Gatchalian reassured the public that the administration’s economic managers are actively working to address the high inflation rate. Furthermore, the DSWD is intensifying its efforts to safeguard the value of the peso through cash grants given to low-income and poor households. The President’s objective is to establish social protection measures that are not only suitable for the present but also meet the needs of the population. It is well-known that inflation primarily affects the bottom 30% or more of the population.
Highlighting the impact of inflation, Gatchalian mentioned that in 2023, the inflation rate for the “bottom 300” was 6.7%, which is 0.7% higher than the regular rate of 6.0%. This increase likely affected not only the poor but also those who are not classified as poor.
President Marcos Jr. has urged the DSWD to develop and implement the “self-indexing” methods as soon as possible. The administration’s focus on prompt action and decision-making is evident, as everything needs to be known in the present. Gatchalian expressed his commitment to this task, stating that he would return to the office to analyze the data with the assistance of data crunchers and collaborate with the PSA. The goal is to incorporate each other’s ideas and implement the mechanisms swiftly.
NEDA Secretary Arsenio Balisacan emphasized that the government is expediting initiatives to lower the prices of essential commodities and control inflation. This response comes after a survey conducted by independent research group OCTA Research revealed that 75% of Filipinos are dissatisfied with the government’s efforts to address high inflation.
Balisacan further highlighted the administration’s determination to manage price increases, particularly for basic commodities like rice, in light of the ongoing El Niño phenomenon and the upward pressure on prices from the global rice market. The government is actively working to attract substantial foreign direct investments that will generate more high-quality jobs, ultimately increasing the income and purchasing power of Filipinos.
In conclusion, President Marcos Jr.’s directive to the DSWD to develop “self-adjusting mechanisms” for the government’s cash subsidy program demonstrates the administration’s commitment to protecting beneficiaries from the impact of high inflation. The collaboration between the DSWD, PSA, and NEDA will ensure that the cash assistance provided through programs like 4Ps remains valuable during periods of inflationary spikes. The government’s efforts to address high inflation and manage price increases for essential commodities reflect its commitment to improving the well-being and purchasing power of Filipinos.
Source: The Manila Times
