NSCB says EVAT subsidy can reduce poor senior citizens

A CASH subsidy from the collection of the expanded value-added tax (EVAT) could sharply reduce the number of poor senior citizens in the country, according to the National Statistical Coordination Board (NSCB).

Romulo Virola, secretary general of the NSCB said poverty incidence among senior citizens would have been 1.1 percent in 2003 instead of 15.1 percent, assuming that the P500-subsidy was provided them on a monthly basis.

Also, poverty incidence among senior citizens would have been 2.4 percent in 2006 instead of 16.2 percent.

In terms of magnitude, poor senior citizens would have numbered 56,947 in 2003 instead of 793,233; and 150,383 in 2006 instead of 1,035,089.

“And had we been even ‘more generous’ and made this a P 1,000-monthly subsidy, there would have been no poor senior citizen in 2003 and 2006,” Virola said.

There were 0.8 million and 1.0 million poor senior citizens in 2003 and 2006, respectively, compared with the total poor population of 19.8 million and 22.2 million for the same two years.

Thus, the poor senior citizens comprised 4 percent and 4.7 percent of the poor population in those years.

In 2008, the Arroyo administration implemented the “Katas ng VAT-Tulong Para Kay Lolo at Lola,” which gave a one-time cash subsidy of P500 for qualified senior citizens funded through revenues generated from the EVAT collection.

The Department of Social Welfare and Development said a total of 1.3 million senior citizens were covered between August 2008 and 2010.

Virola said the senior citizens account for 6.9 percent but this will increase to about 7.8 percent by the end of the Aquino administration.

By 2040, the number of senior citizen is projected to hit 19.6 million out of 141.7 million Filipinos.

The share of seniors to the total population has been steadily increasing over time, from 5.3 percent in 1980 to 6 percent in 2000 and 6.9 percent in 2011. This is estimated to reach 13.8 percent in 2040.

Among the senior citizens, 54 percent are females and 46 percent, males.

Virola, however, said subsidies would have their price.

If the government provides P500, or P1,000 in monthly subsidy this year, these would translate to 0.04 percent and 0.07 percent of the last year’s gross domestic product, respectively.

The subsidy also would translate to 0.33 percent and 0.66 percent of the 2011 government budget.

Virola said health is a critical concern among the senior citizens.

Based on the Philippine National Health Accounts, the average per capita health expenditure for senior citizens was P2,642 in 2007.

“The senior citizens most certainly spend more than the average so an annual health insurance premium subsidy of at least P2,642 for our senior citizens would be something that the Philippine Charity Sweepstakes Office can consider in lieu of the at-need-assistance that it currently gives,” Virola said. –DARWIN G. AMOJELAR, Manila Times