Aquino admin to shell out P1B more for fuel subsidies

(Updated 9:23 p.m.) The Aquino administration on Thursday said it will shell out an additional P1 billion worth of fuel subsidies for the transport sector, farmers and fishermen in light of the unabated oil price increase. In a press briefing, presidential spokesperson Edwin Lacierda said the government will disburse the money to extend the coverage of the Aquino administration's fuel subsidy program or Pantawid Pasada scheme. "Kung kinakailangan pang i-extend ang coverage... pwedeng gawin ito, kasama na ang mga fisherfolk at magsasaka," Lacierda told Palace reporters. Lacierda’s briefing came a day after the Finance Department reported that that first quarter deficit was well within the programmed ceiling. Because of strong tax collections and a reduction in spending, the government posted a P26.197-billion shortfall in January-March period, comfortably below the projected deficit of P111.986 billion. The government last month said it will release P500 million in fuel subsidies to public utility jeepneys and tricycles to address the steady increase in petroleum prices. Under the program, holders of public transportation franchises will receive smart cards from the Department of Energy. With the lower-than-expected budget deficit, the government can extend funds "to assist via subsidies" to the vulnerable sectors affected by the continuous rising of fuel and commodity prices, according to the Palace. No wage hike on May 1 Meanwhile, Lacierda said the country's economic managers crafted recommendations on actions government may take to ease the impact of rising oil prices. These would be submitted to the President for approval either by Thursday or by Friday. "They have lined up a number of recommendations. They would be presenting them to the President. [The proposal] will be included in the speech of the President on Labor Day," he said. Also, Lacierda said the President is not expected to announce a wage increase on May 1, because the wage boards are set to meet on May 2. "The President mentioned that it would be up to the wage boards to discuss the possible wage hikes, if any," he said. He also kept his lips sealed on the possible non-wage benefits that the President would possibly mention in his May 1 speech. "I could not specifically state if it would be cash or non-cash because they are under study. But definitely, there would be some recommendations that would be announced," he said. On May 1, the President will address and meet with various labor groups, according to the Palace official. — VS, GMA News