NEDA rules out proposal to increase cash transfer payments

BERNARDINO P. TESTA

The National Authority for Economic Development (NEDA) excluded the proposal of a legislator Increasing the unconditional monthly transfer of money (Ernesto M. Pernia told reporters at an inflation briefing last week when he was asked to do so). he was open to raising the UCT for poor families affected by tax reform

Representative Michael L. Romero of the Patriotic Coalition of Marginalized Nationalities (1-PACMAN) party's party list said in a statement of June 24 that he would file an amendment to the Republic Act No. 10963, or tax reform for acceleration and inclusion (TRAIN), in the midst of rising prices

Inflation reached 5.2% in May, with an average of 4.3% over five months. [19] 659004] The TRAIN Act grants a P200 per month UCT for the first to seventh income decile, which will increase to P300 a month next year until 2020.

NEDA Under-Secretary Rosemarie G. Edillon said: "The most robust solution is to increase production, increase capacity, production capacity. So if you intervene on the transfer side, then we fail to launch what is supposed to be the robust solution in the medium and long term. And that's what we want to happen. "

" We have a palliative, but at the same time we will put in place the measures that are necessary for the more robust expansion of capacity and the expansion of production. And that's why we use TRAIN's additional earnings to "build, build, build" for human capital investment, "she added.

Government economic managers said the high inflation environment was "temporary". as it is driven by rising global oil prices and a lower peso, with a spike in demand as the economy grows.

They expect inflation to average between 4-4.5% for 2018.

They are also largely relying on the adoption of the bill on agricultural tariffs – currently pending at the Congress – to fight against the rise in inflation.

Economic managers expect inflation to peak in the third quarter and come back down in October. target band by 2019.

About 30% of TRAIN revenues are to be spent on social mitigation measures. Apart from the UCT, the TRAIN law also provides for the distribution of fuel coupons to Jeepney drivers and operators, which is scheduled to launch this month, price cuts in public transport, reduced prices for rice and technical and vocational training. – Elijah Joseph C. Tubayan