What Is Registration Subsidy Means In The Philippines? (Solution found)

What is the SSS wage subsidy program?

  • This is a joint project of the Department of Finance (DoF), Bureau of Internal Revenue (BIR), and Social Security System (SSS) in response to the COVID-19 national emergency. Here’s everything you need to know about the SSS Wage Subsidy and how to avail of SWBS Program: What is the Small Business Wage Subsidy or SWBS Program?

What does it mean to receive subsidy?

A subsidy is a benefit given to an individual, business, or institution, usually by the government. The subsidy is typically given to remove some type of burden, and it is often considered to be in the overall interest of the public, given to promote a social good or an economic policy.

What are examples of a subsidy?

Examples of Subsidies. Subsidies are a payment from government to private entities, usually to ensure firms stay in business and protect jobs. Examples include agriculture, electric cars, green energy, oil and gas, green energy, transport, and welfare payments.

Why does government give subsidy?

Basically, subsidies are provided by the government to specific industries with the aim of keeping the prices of products and services low for people to be able to afford them and also to encourage production and consumption.

What is subsidy type?

Subsidies come in various forms including: direct ( cash grants, interest-free loans) and indirect (tax breaks, insurance, low-interest loans, accelerated depreciation, rent rebates). Furthermore, they can be broad or narrow, legal or illegal, ethical or unethical.

Is a subsidy a loan?

Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.

How does a subsidy work?

Government subsidies help an industry by paying for part of the cost of the production of a good or service by offering tax credits or reimbursements or by paying for part of the cost a consumer would pay to purchase a good or service.

What is subsidy amount?

Definition: Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of the subsidised product. It is a part of non-plan expenditure of the government. Major subsidies in India are petroleum subsidy, fertiliser subsidy, food subsidy, interest subsidy, etc.

Who benefits from a subsidy to buyers?

Who benefits from a subsidy paid to buyers? a subsidy paid to buyers benefits both sides of the market. Buyers pay less and sellers receive more for each unit sold.

How do you get a government subsidy?

Want to Avail Government Subsidies? Provide Aadhaar and Get it Easily

  1. Direct Benefit Transfer (DBT)
  2. Pradhan Mantri Ujjwala Yojana.
  3. Emeritus Fellowship.
  4. Pradhan Mantri Awas Yojana – Gramin (PMAY-G)
  5. Cash Transfer of Food Subsidy Rules, 2015.
  6. Aam Aadmi Bima Yojana.
  7. Maternity Benefit Programme.

What are the disadvantages of subsidies?

Subsidies have disadvantages, including the possibility of shortages of goods. One of the advantages of subsidies is the greater supply of goods. Due to lowered prices, a sudden increase in demand can be difficult for many producers to meet, resulting in a sudden rise in prices.

What is a seller subsidy?

A final method for lowering closing costs is to negotiate for the seller to pay them. This is often called a “seller subsidy” or “seller closing contribution.” Either way, it’s additional funds working in the buyer’s favor.

What is the effect of a subsidy being placed on the market?

A subsidy generally affects a market by reducing the price paid by buyers and increasing the quantity sold. Subsidies are usually pareto inefficient because they cost more than they deliver in benefits.

What is tenant based subsidy?

Tenant-based rental assistance (TBRA) is a rental subsidy that PJs can use to help individual households afford housing costs such as rent and security deposits. ➢ The most common type provides payments to make up the difference between the amount a household can afford to pay for housing and local rent standards.

Who gets most of the subsidy payments?

While many industries receive government subsidies, three of the biggest beneficiaries are energy, agriculture, and transportation.

What is the difference between incentive and subsidy?

The study of incentive structures is central to study of all economic activities (both in terms of individual decision making and in terms of co-operation and competition with a larger institutional structure). A subsidy is a benefit given to an individual, business or institution, usually by the government.

U.S. and Philippine Governments Partner to Speed Up Distribution of SAP Subsidies

Filipinos may now access government assistance more quickly thanks to a new online application.

Manila, May 18, 2020– The United States government, through the U.S. Agency for International Development (USAID), in partnership with the Department of Social Welfare and Development (DSWD), formally launched the “ReliefAgad” web application on May 14 to speed up the distribution of financial assistance to Filipinos affected by the COVID-19 pandemic.

The Department of Information and Communications Technology (DICT) and Developers Connect Philippines (DEVCON), through the DEVCON Community of Technology Experts (DCTx), are collaborating with the Department of Social Welfare and Development (DSWD) and the United States Agency for International Development (USAID) on ReliefAgad. This program, known as the Social Amelioration Program (SAP), is an emergency subsidy program run by the Philippine government for more than 20 million Filipino families that fall into the low-income and most-vulnerable sectors — those who have been disproportionately affected by COVID-19.

ReliefAgad would allow the Department of Social Welfare and Development (DSWD) and local government entities to speed the collection of SAP details and the provision of data to expedite the dispensing of financial assistance using electronic payment systems.

  1. In response to the COVID-19 health catastrophe, the United States is firmly committed to assisting the Philippine government.
  2. DSWD Undersecretary Danilo Pamonag stated that the adoption of the ReliefAgad system will enhance the collection of beneficiary data by taking advantage of mobile phone technology.
  3. In addition, USAID is aiding the Department of Social Welfare and Development (DSWD) and selected local governments (LGUs) in the adoption of electronic payment systems for the delivery of relief to SAP recipients.
  4. The DCTx created the ReliefAgad system at no expense to the Department of Social Welfare and Development.
  5. ReliefAgad will meet the demands of both government agencies and the people who would benefit from its services.

Winston Damarillo, CEO of Talino Labs, at DEVCON. A number of commercial sector partners, including PLDT and Amazon, contribute to ReliefAgad’s success.


The United States Organization for Overseas Development (USAID) is the primary government agency responsible for international development and disaster relief. Philippines: The United States Agency for International Development (USAID) collaborates with the national government to make the country more stable, prosperous, and well-governed. For further information, please contact [email protected] by email. Until| May 18, 2020 | The following topics:Former United States Ambassadors,News,Press Releases,United States Philippines,United States Agencies|

85 out of 100 Filipino families covered by Gov’t subsidies for low-income households, small business workers

  • According to Finance Secretary Carlos Dominguez III, approximately 85 out of every 100 Filipino families are covered by the government’s subsidy programs, which total P256 billion and are targeted at the country’s most vulnerable sectors, which have been hit the hardest by the economic impact of the coronavirus disease 2019 (COVID-19) pandemic, according to reports. These state subsidies benefit over 18 million poor and low-income households that rely primarily on the “no work, no pay” structure of the informal sector to exist. This extremely large demographic segment, which accounts for about 75% of all Filipino households, is the recipient of a total of P205 billion in financial assistance. The government would also provide salary subsidies to 3.4 million workers in the formal sector who are working in small enterprises, a total of P51 billion in the first year. In order to save lives and provide lifelines to the sectors most affected by the sudden stoppage of economic activity caused by the national and local governments’ efforts to prevent the rapid spread of COVID-19, both of these subsidy programs will run for a period of two months. President Duterte has stated that saving lives and providing lifelines to the sectors most affected by the sudden stoppage of economic activity will be his top priority during this global health crisis. “There are approximately 24.6 million families in the Philippines as a whole.” Consequently, we are practically covering around 85 percent of the population,” Dominguez said in response to a question about how many Filipinos are covered by the government’s emergency subsidy programs during a public affairs program hosted by Presidential Communications Secretary Martin Andanar on PTV4 on Thursday night. “Families with members who work for major corporations, particularly the top 2,745 firms, and families with members who work for the government, both at the national and municipal levels, are excluded from the study.” In addition, they account for the remaining 15 percent of households,” the Finance Minister stated. As part of the Enhanced Community Quarantine (ECQ), which has been implemented throughout Luzon and other parts of the country, the public affairs show discussed the mechanics, details, and eligibility criteria for the Small Business Wage Subsidy (SBWS) program, which was launched by the government on April 16 and is intended to assist the 3.4 million employees who are unable to work as a result of the Enhanced Community Quarantine (ECQ). The pay subsidies that will be provided will vary from P5,000 to P8,00o each month for a period of two months, depending on the locations in which the employees are placed. ‘A few weeks ago, we started delivering the largest social program in the country’s history–a P205-billion social amelioration program for families from the informal sector,’ added Dominguez. “However, we also know that extending a lifeline to small firms and their employees is crucial to keeping the economy afloat,” says the president. ” Dominguez stated that the government has requested assistance from the business sector for their employees since March 2020. His point was that because small firms generate little or no revenue during the quarantine period, they do not have enough cash to cover payroll, rent, loan amortization, and other expenditures that come up during the period. To mitigate the economic impact of the COVID-19 epidemic on individuals and companies, the government has established grace periods for rental payments and loan payments. “With this salary subsidy, we are now assisting their employees, who are predominantly from the lower middle class, in meeting their fundamental necessities, such as food and medicine.” Second, and maybe more importantly, we are assisting these individuals in maintaining their positions. According to Dominguez, the Small Business Wage Subsidy is an important component of an assistance package that the government is putting together for small firms. He stated that the two other components of the Small Business Relief Program (SBRP) are a proposed credit guarantee to make it easier for micro, small, and medium-sized enterprises (MSMEs) to access bank financing, and proposed legislation to allow small businesses to carry over net operating losses (NOLCO) for a period of five years to help them cope with losses. During the show, Finance Undersecretary Karl Kendrick Chua provided an overview of the SBWS program, while Deputy Commissioner Arnel Guballa of the Bureau of Internal Revenue (BIR) and President and CEO of the Social Security System (SSS) Aurora Cruz Ignacio discussed the specifics of applying for the program during the show. Details on how to apply for the program may be found on this page on the Social Security Administration’s website: bit.ly/SmallBusinessWageSubsidyProgram Applicants may also get the instructions through the official Facebook sites of the Department of Finance (DOF), the Social Security System (SSS), and the Bureau of Internal Revenue (BIR). The Department of Defense has also made a downloadable PDF available on its website that details the step-by-step process for applying for the SBWS. In order to be eligible for the cash incentive under the SBWS, a qualified employee must meet all of the following requirements: employees of eligible small businesses who are employed and active as of March 1, 2020 but who are unable to work because of the ECQ
  • Employees who did not receive compensation for at least two weeks during the temporary closure or suspension of work in accordance with Labor Advisory No. 1, Series of 2020
  • Employees of any contract status (e.g., regular, probationary, seasonal, project-based, fixed-term)
  • And employees who are certified by their employer in the application as meeting all of the requirements listed above. Those that are ineligible include the following individuals: To minimize duplication, people who are currently receiving SSS unemployment benefits as a result of COVID-19, or who are in the process of doing so, should not be considered. Those who have settled or are in the process of settling their SSS final claims should also not be considered (funeral, retirement, death, and total disability). The owner or operator of the small business will be the one who submits the application on behalf of the eligible employees in the company. In order to determine whether or if his or her organization is eligible under the SBWS, the employer must first examine the BIR website. Qualified corporations, partnerships, and sole proprietorships will be able to generate a passcode that will be used to log in to the Social Security Administration website, where the applications of eligible employees will be reviewed and processed. According to the Department of Finance, any current business–whether a sole proprietorship, a partnership, or a corporation–that meets the following conditions is eligible to participate in the program: Employees who are unable to work and who have not been paid during the ECQ or other forms of quarantine imposed by local government units can apply for a wage subsidy if they meet the following requirements: 1) they must not be on the BIR’s Large Taxpayer Service (LTS) list
  • And 2) they must be employed in non-essential industries that have been forced to stop operations (i.e., temporary closure or suspension of work) and those in quasi-essential industries that have been allowed (LGUs). Priority will be given to those who have been BIR-registered and have been in compliance with tax obligations for the past three years up to January 2020, as well as those who have been SSS-registered and have paid SSS contributions for the past three years up to January 2020 (the last recorded contribution). The link to the SBWS application on the SSS website walks you through the process of applying for the wage subsidy program step-by-step, which you can find here. According to Ignacio, the application period for the salary subsidy will be from April 16 through April 30, 2019. The first tranche of subsidies will be distributed between May 1 and May 15, according to the schedule. The second tranche will be distributed between May 16 and May 31, depending on whether the ECQ is lifted early or if the President decides to prolong the period of time for distribution. Beneficiaries of the COVID-19 Adjustment Measures Program (CAMP) of the Department of Labor and Employment (DOLE) who have already received their P5,000 CAMP payment would only be eligible for a one-month wage subsidy under the SBWS program in order to minimize duplication of benefits. The qualifying employee will be able to receive the subsidies in the manner of his or her choosing from the following options: Withdrawal via employee’s SSS UMID cards that have been enrolled as automated teller machine (ATM) cards
  • 2) Withdrawal from employee’s bank account for PESOnet-participating banks
  • 3) Employee’s Union Bank Quick Card (in partnership with SSS)
  • 4) Employee’s E-wallet: PayMaya
  • And 5) Cash pick-up arrangement through remittance transfer companies Due to the fact that the pay subsidy would be sent mostly through the employees’ bank accounts, Ignacio advised SSS members to update their bank account or e-wallet information on their my.SSS account, as this will be the major means of distribution. Wage subsidies will be supplied through cash pick-up agreements with remittance transfer providers for employees who do not already have a bank or electronic wallet account. Employees who wish to take advantage of this option must first enroll their cell phone number with the Social Security Administration (SSS) through their member my.SSS account,” Ignacio explained. Whether or not a company or its employees qualify for the wage subsidy program is communicated to both parties. After the national government placed Metro Manila and, later, the rest of Luzon under ECQ, and after local government units (LGUs) implemented similar containment measures in their respective jurisdictions, Dominguez said the Department of Finance estimates that some 393,095 small businesses were forced to close their doors and that another 1 million are now operating with skeletal staff. He estimates that only roughly 161,102 critical small enterprises, such as those in the food service and logistics industries, as well as select retail outlets like drugstores and supermarkets, have been permitted to continue operating during the ECQ. In his statement, Dominguez stated that the government’s use of the existing SSS and BIR systems has enabled it to better target and identify affected small businesses and their employees, monitor and evaluate the program’s impact, and deliver the subsidy more efficiently in future, should the quarantine be extended. -oOo-
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Small Business Wage Subsidy Program

As part of its efforts to ameliorate the impact of the quarantine on the people of Luzon and the different local government units, the national government is giving a salary subsidy to impacted employees of small enterprises. This pay subsidy will be provided for a period of up to two months in order to allow impacted small enterprises to keep their staff throughout the quarantine. Under the Small Business Wage Subsidy (SBWS) policy, the government, through the Social Security System (SSS), shall offer a wage subsidy of between 5,000 and 8,000 pesos (depending on the regional minimum wage) each month per qualifying employee.

The Social Security System (SSS) will only be accepting applications fromApril 16, 2020 toMay 8, 2020.

Both of these requirements must be met by the small firm.

  • Whether a corporation, partnership, or sole proprietorship, the small business must not be listed on the BIR’s Large Taxpayer Service (LTS) list. Type of business: The following are the consequences of the enhanced community quarantine (ECQ): Small businesses in Category A (non-essentials) that are forced to stop operations (i.e., temporarily close or suspend work) and Category B (quasi-essentials) that are allowed to operate with a skeleton force can apply for a wage subsidy for employees who are unable to work and were not paid during the ECQ can apply for the wage subsidy. Employers in regions where other types of quarantine have been imposed by the LGU may also be eligible for this program.
  • Priority will be given to the small enterprises listed below:
  1. Registered with the BIR and in compliance with tax responsibilities for the previous three years, up to and including January 2020
  2. Individuals who have been SSS-registered and who have paid SSS contributions for the previous three years, up to and including January 2020 (the most recent documented contribution)

In order to be eligible for the program, you must meet the requirements listed below:

  1. In order to qualify for the SBWS, small firms must keep all qualified employee beneficiaries employed before the ECQ and for the duration of the SBWS period. In the course of the monitoring and evaluation process, this will be verified. Non-compliance with this requirement will result in the employer being required to return to the government the amount of the wage subsidy received. During the ECQ time, employees are not permitted to resign.

The government would provide a pay subsidy of 5,000 to 8,000 pesos per month (depending on their location of employment) for up to two months to all qualified employees of eligible small firms, depending on the degree of the ECQ. The subsidy amount varies by location and is typically consistent with the emergency subsidy for the informal sector, with the exception of the National Capital Region and Regions III and IV-A, where an estimated 8,000 pesos per month is provided to all eligible employees.

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  1. Withdrawal with the use of SSS UMID cards that have been enrolled as ATMs. Withdrawal from an employee’s bank account for banks that participate in PESOnet (see the list of participating banks here)
  2. Employees’ Union Bank Quick Card (in collaboration with the Social Security Administration)
  3. E-wallet for employees provided by PayMaya
  4. Cash pickup arrangement made by MLhuillier.


For-employers -How-do-we-determine-if-an-employer-is-included-in-the-pre-qualified-list of-the-SBWS -17-April-2020.pdf

For employers: Application via the SSS website

SBWS StepByStep MySSS as-of-April-25-2020.pdf

Method 2:E-form submission through secure site (via secure link sent through email)

This is only available to pre-qualified employers that have their email addresses on file with SSS.

All of the necessary information has been forwarded to them.

Method 3: File upload through secure site (Microsoft Excel file upload to sbws.sss.gov.ph)

SBWS StepByStep METHOD3.pdf Alternatively, you can submit an email to the Bureau of Internal Revenue at SBWS [email protected] with the following information:

  • Identification Number (TIN)
  • Registered Name or Business Name
  • Revenue District Office (RDO) where the registration was completed
  • Message from You

Important links and commonly asked questions about the SBWS program may be found at the following website. Employer’s commitment to the SBWS program.pdf

Joint Memorandum Circular No. 001-2020

A Joint Memorandum Circular 001-2020 relating to the SBWS program is available in PDF format.

Joint Memorandum Circular No. 002-2020

A joint Memorandum Circular 002-2020 on the SBWS program is available as a PDF file. SBWS Program Task Force Resolution No. 1.pdf SBWS Program Task Force Resolution No. 1.pdf Resolution No. 2 of the SBWS Program Task Force.pdf SBWS Program Task Force Resolution No. 3.pdf SBWS Program Task Force Resolution No. 3.pdf SBWS Program Task Force Resolution No. 4.pdf (SBWS Program Task Force Resolution No. 4.pdf) SBWS Program Task Force Resolution No. 5.pdf (SBWS Program Task Force Resolution No. 5.pdf) Resolution No.

  • Inquiries can be sent to Call Center 1455 (on a smartphone) and 81455 (on a landline)
  • Toll Free: 1-800-10-2255777
  • Email: [email protected]SSSPh
  • Facebook page: fb.com/SSSPh
  • And website: www.SSSPh

Subsidy Definition

A subsidy is a benefit that is provided to an individual, business, or institution, and is generally provided by the federal government. It can be either direct (as in cash payments) or indirect (as in credit card payments) (such astax breaks). It is customary for a subsidy to be provided in order to relieve some form of burden, and it is frequently deemed to be in the general public’s best interests when it is provided to promote a social good or an economic policy.

Key Takeaways

  • A subsidy is a direct or indirect payment made to individuals or businesses by the government, which is typically in the form of a cash transfer or a targeted tax reduction. Subsidies, according to economic theory, can be used to compensate for market failures and externalities in order to achieve higher economic efficiency. But opponents of subsidies point to difficulties in estimating appropriate subsidies, dealing with unexpected expenses, and avoiding political incentives from making subsidies more costly than they are useful.

Understanding Subsidy

A subsidy is typically some type of payment made to an individual or corporate organization that is receiving it, whether it is delivered directly or indirectly. Subsidies are often regarded as a special sort of financial assistance because they relieve the recipient of an associated burden that had previously been imposed on him or her, or because they encourage a certain conduct by giving financial support. Subsidies have an opportunity cost associated with them. Consider the agricultural subsidies provided during the Great Depression: it had highly apparent impacts, with farmers reporting increased earnings and the hiring of extra staff.

Money from the subsidies had to be deducted from individual income tax returns, and customers were stung a second time when food costs rose at the supermarket.

Types of Subsidies

Subsidies are often used to benefit specific sectors of a country’s economy. If it can alleviate the pressures put on faltering sectors, it can also promote new advances by giving financial assistance for their initiatives. Frequently, these regions are not adequately supported by the operations of the main economy, and they may even be undermined by activity in other economies.

Direct vs. Indirect Subsidies

Direct subsidies are those that entail the direct payment of monies to a specific individual, organization, or industry. They are also known as direct payments. Those that have no preset monetary value or that do not entail real financial outlays are referred to as indirect subsidies. They can include initiatives like as price reductions for essential products and services, which can be funded by the government, among other things.

This permits the necessary commodities to be acquired at a lower cost than the current market rate, resulting in savings for individuals who are intended to benefit from the subsidy.

Government Subsidies

The government provides a wide range of subsidies to a wide range of industries. Individual subsidies include welfare payments and unemployment benefits, which are two of the most popular kinds of financial assistance. The purpose of these forms of subsidies is to provide assistance to persons who are experiencing temporary economic hardship. People are encouraged to continue their education via the use of other incentives such as discounted interest rates on student loans and other forms of financial assistance.

These subsidies are intended to reduce the amount of money that people have to pay out of pocket for insurance premiums.

Subsidies to companies are provided to assist a sector that is failing to compete against worldwide competition that has reduced prices to the point where the local firm would be unprofitable without the subsidy.

Advantages and Disadvantages of Subsidies

Public subsidies are justified on a variety of grounds: some are economic in nature, others are political in nature, and still others derive from socio-economic development theories. In accordance with development theory, certain industries require protection from foreign competition in order to maximize domestic advantage. Technically speaking, a free market economy is one that is devoid of subsidies; the introduction of a subsidy changes a free market economy into a mixed economy. Economics and politicians frequently dispute the advantages of government subsidies, and by extension the extent to which a mixed economy should be allowed to exist in a given country.


Pro-subsidy Economists say that providing subsidies to certain industries is essential for assisting in the support of firms and the employment they produce. The mixed economy is supported by economists who think that subsidies are justified in order to offer the socially optimal level of goods and services, which will lead to economic efficiency as a result of the mixed economy. In modern neoclassical economic models, there are instances in which the real supply of an item or service goes below the theoreticalequilibriumlevel, resulting in an undesired shortage and what economists refer to as a market failure.

  • The subsidy decreases the cost of bringing the item or service to market for the producers who receive it.
  • In other words, according to general equilibrium theory, subsidies are required when a market failure results in an insufficient amount of output in a particular area of the country.
  • Some claim that commodities or services produce what economists refer to as “positive externalities,” which are beneficial to the economy.
  • However, because the third party is not a direct participant in the decision, the activity will only take place to the degree that it directly helps those who are directly engaged, leaving potential societal benefits on the table as a result of this.
  • The inverse of this type of subsidy is the imposition of a charge on activities that generate negative externalities.

This is a common approach that is now being used in China and other South American countries.


Other economists, on the other hand, believe that free market forces should determine whether a company survives or fails. Even if it fails, the resources are redeployed to a more efficient and lucrative application. It is their contention that subsidies to these enterprises just serve to maintain an inefficient allocation of scarce resources. Subsidies are viewed with suspicion by free market economists for a variety of reasons. Many people believe that government subsidies needlessly distort markets, limiting efficient results and diverting resources away from more productive applications and onto less productive ones.

  1. Official expenditure on subsidies, according to some critics, is never as successful as government predictions indicate it would be.
  2. Another issue, as critics point out, is that the act of subsidizing contributes to the corruption of the democratic process.
  3. Companies frequently seek protection from the government in order to protect themselves from competition.
  4. Even if a subsidy is introduced with the best of intentions, without any hint of conspiracy or self-interest, it increases the earnings of those who benefit from it, creating an incentive to fight for its continuation long after the necessity or utility of the subsidy has passed.

Special Considerations

There are a number of different metrics that may be used to assess the success of government subsidies. Most economists regard a subsidy to be a failure if it does not result in a general improvement in the economy. Policymakers, on the other hand, may still deem it a success if it aids in the achievement of a different goal. Despite the fact that most subsidies are long-term failures in the economic sense, they nonetheless accomplish cultural or political objectives. When it comes to the Great Depression, we may see an illustration of these opposing assessments.

  1. Their policy objective was to keep food prices from dropping further and to safeguard small farmers from being harmed.
  2. However, the economic ramifications were completely different.
  3. Those who did not work in the agricultural business fared badly in terms of absolute economic well-being.
  4. Subventions for renewable (non-oil-based) energy sources totaled more than $60 billion in the United States Department of Energy (DOE) fiscal years 2012 and 2013.
  5. The receiving firms, on the other hand, were unable to generate a profit, and oil prices fell in 2014.

People who directly or indirectly benefit from subsidies tend to be the greatest supporters of them, and the political motivation to “bring home the bacon” to ensure support from special interests is a potent magnet for politicians and policymakers alike to support them.

Wha is the difference between direct and indirect subsidies?

Direct subsidies are those that entail the direct payment of monies to a specific individual, organization, or industry. They are also known as direct payments. Those that have no preset monetary value or that do not entail real financial outlays are referred to as indirect subsidies. These can include efforts like as price reductions for essential products and services, which can be funded by the government in some cases.

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What is the position of subsidy advocates?

Subsidies are available in mixed-income societies. Proponents say that providing subsidies to certain industries is critical to assisting in the support of businesses and the employment they generate. They also argue that subsidies are appropriate in order to offer the socially optimal level of goods and services, which will result in greater economic efficiency in the long run.

What is the position of subsidy opponents?

Subsidies are prohibited in a free market economy, at least on a technical level. If a firm survives or fails, opponents of government subsidies believe that market forces should be the determining factor. If it fails, those resources will be redistributed to a more efficient and profitable use in the future. They contend that subsidies unduly distort markets by diverting resources away from more productive applications and onto less productive ones, so preventing efficient outcomes from occurring.

Philippines: emergency cash for families due to COVID-19 by region 2020

Following a recent outbreak of the coronavirus COVID-19 in the Philippines, the island of Luzon was placed on lockdown to prevent the spread of the virus. This has resulted in an emergency cash support for low-income families in the country, which has been adopted by the government. Every low-income home in the National Capital Region would get a sum of 8,000 Philippine pesos, while low-income families in other regions would receive an amount ranging from 5,000 to 6,500 Philippine pesos.

Value of emergency cash subsidy for every low-income families due to the coronavirus COVID-19 in the Philippines in 2020, by region(in Philippine pesos)

Characteristic Cash subsidy in Philippine pesos
NCR 8,000
CAR 5,500
Region 1 5,500
Region 2 5,500
Region 3 6,500
Region 4-A 6,500
Region 4-B 5,000
Region 5 5,000
Region 6 6,000
Region 7 6,000
Region 8 5,000
Region 9 5,000
Region 10 6,000
Region 11 6,000
Region 12 5,000
CARAGA 5,000
ARMM 5,000

Source More information may be found here. Notes on the ad hoc basis In accordance with the source, the subsidy was granted in accordance with Section 4 (c) of Republic Act No. 11469, also known as the Bayanihan to Heal as One Act, which addresses an emergency subsidy for approximately 18 million low-income households in the country that have been subjected to strict quarantines as a result of the COVID-19 pandemic. One Philippine peso is worth 0.02 US dollars and 0.018 euros as of April 2020, according to the Bureau of the Census.

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Economic managers OK P1 billion fuel subsidy

2:00 a.m. on October 26, 2021 | MANILA, Philippines — MANILA, Philippines — It has been pledged by the government’s economic team to send P1 billion to the Land Transportation Franchising and Regulatory Board (LTFRB) for cash awards to public utility vehicle (PUV) drivers who are suffering as a result of rising fuel costs. As stated by the Development Budget Coordination Committee (DBCC), which is at the Cabinet level, this declaration was made yesterday in response to the need for help for the transportation industry as it attempts to overcome the problems presented by rising oil prices.

  1. The monetary assistance will be provided via the Pantawid Pasada Program of the LTFRB.
  2. The economic team’s decision demonstrated its determination to maintain the excise taxes on gasoline in the face of requests to suspend the tariffs altogether.
  3. The Department of Transportation (DOTr) expressed satisfaction with the distribution of financial grants to the LTFRB, which is an associated agency.
  4. Earlier this week, the Department of Finance (DOF) stated that it opposes plans to suspend gasoline excise duties, which have been advanced by the Department of Energy (DOE), parliamentarians, and transportation organizations.
  5. The Department of Defense (Dof) has called on government agencies, including the Department of Energy (DOE), to investigate the potential loss of P131.4 billion as a result of the planned suspension.
  6. Over the course of at least two months, oil prices have been steadily climbing, placing further strain on not just PUV drivers, but also normal customers.

As a result, a jeepney driver must pay an additional P95.70 per day for 11 liters of fuel, while a farmer must spend an additional P1,653 per hectare every cropping season for 190 liters of diesel per hectare per cropping season.

Aid for fishers

The Department of Agriculture (DA) has stated that it is working with the Department of Energy (DOE) to provide fuel savings to fishermen. A virtual news briefing was held yesterday by Agriculture Undersecretary Cheryl Caballero, who stated that fishermen in the West Philippine Sea will be given precedence over the rest of the country’s fishing fleet. “According to our early conversations, fishermen in the WPS are the top priority because we simply want to ensure that their fishing operations are sustainable, and one way to achieve so is to provide help in the form of a discount,” Caballero explained.

Following discussions with the Department of Energy, she stated that around 30,000 municipal fishers and 938 commercial fishers in the West Philippine Sea are expected to benefit from the fuel discount.

Regarding the fuel discount, Caballero stated that the DOE is also in discussions with fuel firms such as Pilipinas Shell Petroleum Corp., Petron Corp., Caltex, and Phoenix Petroleum Philippines, among others, on the program’s implementation.

As a result, their negotiations remain ongoing,” Caballero explained.

Discounts, subsidy

Sen. Bong Go, for his part, has requested the Department of Energy, the Department of Agriculture, and the Department of Transportation to investigate the idea of granting fuel discounts and subsidies to public transportation and other important sectors such as food delivery. Go stated in a statement that he believes that by providing these advantages, concerned government agencies would be able to assist Filipinos in coping with their financial obligations as a result of the growing cost of crude oil.

“As members of the government, we have a responsibility to identify methods to reduce the burden placed on the people, particularly at a time when we are attempting to overcome a crisis.” Please don’t make their problems worse,” he stressed.

Protecting the lives and livelihood of Filipinos, fighting poverty and hunger, and ensuring that the transition to a better life continues are all important goals. In our pursuit of a complete recovery from this epidemic, we must not leave any Filipino behind,” he continued.

No fare hike

Yesterday, the Department of Transportation (DOTr) stated that it will not implement fare increases, but will implement measures to mitigate the impact of recurrent gasoline price rises on drivers and operators of public utility vehicles (PUVs). During a hearing before the Senate Finance Subcommittee chaired by Sen. Grace Poe, Transportation Secretary Arthur Tugade stated that “the department, including the LTFRB, believes that there should be no fare hike at this time and that it is preferable to look for other means to help our PUV drivers.” In a statement, DOTr Undersecretary Steve Pastor stated that “we are not in support of fee rises because commuters have nothing to do with fuel price increases.” Tugade stated that the Department of Finance is better suited to address the subject of suspending gasoline excise charges.

Moreover, Pastor stated that the Tax Reform for Acceleration and Inclusion Act also has provisions to create benefit programs for PUVs, while he acknowledged that financing for such programs is not currently available.

Imee Marcos expressed disappointment that the Department of Transportation (DOTr) is still in the process of holding meetings, despite the fact that gasoline prices have been rising for the previous nine weeks.


The issue of increasing the seating capacity in public transportation vehicles (PUVs) will be discussed at the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) meeting on Thursday, according to Pastor.

“This is an emergency phone call.

Because of the epidemic, the people are suffering, and now we have these callous officials from the government and monopolies,” he explained.

In order to bring down the soaring oil costs, President Duterte should be pressed into action,” the report said.

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