Senator Alan Peter Cayetano pushed for a more efficient approach to distributing government aid, saying administrative costs are eating up on the funds instead of benefitting Filipinos in need.
During the recent Senate briefing of the Development Budget Coordination Committee (DBCC), Cayetano said with the government agencies’ ayuda funds totaling P590 billion in the 2025 national budget, the country could “theoretically… provide P20,000 to every poor family in the country.”
The veteran legislator, however, said the total amount does not reach the maximum number of families because of administrative costs.
“As a rule of thumb, how much ang admin costs kapag dumaan pa sa government agencies? Usually mga 20 to 30%? Even sa start nung AICS (Assistance to Individuals in Crisis Situation) nung maliit siya, sinabi na ng DSWD na parang 18 to 20% ang admin costs. But nung lumaki ang AICS, humingi pa sila ng additional funds,” the seasoned lawmaker noted.
“A further percentage is taken if the aid is coursed through a financial institution.”
The senator also said a further percentage is taken if the aid is coursed through a financial institution.
Budget Secretary Amenah Pangandaman responded that for the 4Ps (Pantawid Pamilyang Pilipino Program), the administration costs are at 2 percent; for the social pension for indigent citizens at 1.5 percent; and for AICS at 2 percent.
Cayetano then pointed out that these figures do not account for salaries and recurring costs in ayuda distribution.
“That doesn’t include their sweldo and MOOE (Maintenance and Other Operating Expenses). Meaning if I tell the mayors, ‘Mayor, ito yung pera per family,’ walang admin costs ‘yon kasi the families are in the gym and binibigay na nila. Sa LGU, they will not hire additional [manpower] kasi nandoon na sila. Pero yung DSWD and everything, lalaki,” he said.
“I urge finance managers to evaluate which forms of aid should remain targeted and others to be given directly to beneficiaries.”
Making a point to maximize all ayuda funds, Cayetano urged finance managers to evaluate which forms of aid should remain targeted and others to be given directly to beneficiaries.
“We should really look at which ayuda we should keep targeted, and which we should just directly give,” he urged the DBCC panel.
