Cash transfer program to cost government P306.6B until 2016

By Kathrina Alvarez
August 23, 2011
A PROGRAM that gives poor beneficiaries cash in exchange for keeping their kids in school, among others, will cost the government around P306.6 billion until the Department of Social Welfare and Development (DSWD) implements its exit strategy in 2016.
This was revealed by Social Welfare Secretary Corazon Soliman during the budget hearing of the House Committee on Appropriations Monday after several legislators questioned the huge increase in the department’s conditional cash transfer (CCT) program.
In the next five years starting 2012, the Aquino government will spend P306.6 billion for CCT, P276 billion are for cash grants awarded to beneficiaries, and the remaining P30.6 billion will be for implementing costs. Beneficiaries receive a monthly stipend of up to P1,400.
At least 4.6 million beneficiaries will benefit from the cash transfer program until the exit strategy prepared by the DSWD is implemented by 2016.
The exit strategy involves the introduction of a sustainable livelihood program and self- employment assistance program and guaranteed employment through public-private partnerships initiative of the government.
The CCT program was introduced in 2007 through a pilot project program with 6,000 targeted households. It was formally implemented in January 2008 with 300,000 households.
From 2007 to July 2011, around P25.7 billion had already been appropriated for the CCT program. Household-registrants are enrolled in the CCT for five years. This means that those to be registered by 2015 will continue to receive their monthly stipend until 2020.
Bayan Muna party-list Representative Teodoro Casino expressed worry over the computation made by Secretary Soliman, noting that the P306.6 billion budget for CCT excludes debt payments.
“There is no impact assessment yet and they are even unsure on the statistics to be used for determining the beneficiaries…Such a huge amount of government resources are better used for generating jobs, improving healthcare facilities and public schools instead of a dole-out program with questionable outcomes. There should be no expansion of the program and increase in the budget without a comprehensive impact study,” Casino said.
For next year, the DSWD will receive P49.4 billion from P34.3 billion this year—an increase of 43.9 percent—to support the expansion of the Pantawid Pamilyang Pilipino Program (4Ps) and cover 3 million indigent households.
The CCT program under the 4Ps have been increased by 89 percent– from P23 to P39 billion–even if the additional households to be registered only reach 700,000.
Budget Secretary Florencio “Butch” Abad had earlier explained that the program, which has been dubbed as a “dole-out”, is targeted towards the achievement of millennium development goals.
Soliman appealed to members of the House of Representatives which holds the power of the purse to approve the proposed “children’s budget” which has benefited close to six million children so far.
“This may not totally eradicate poverty but life is better with these cash grants,” she said. (Sunnex)

Source: http://www.sunstar.com.ph/manila/local-news/2011/08/22/cash-transfer-program-cost-government-p3066b-until-2016-174680

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