Press Statement of Deputy Speaker and Batangas Rep. Ralph G. Recto

2 August 2022

Senior pension hike law raises the P25-billion-peso question

This year, the Social Pension for Indigent Seniors Program covers 4,079,669 seniors, costing taxpayers P25.01 billion annually.

If the bill doubling the monthly P500 pension to P1,000 has lapsed into law, then it would mean that the budgetary requirement will also double to P50 billion.

So this is the P25-billion-question whose answer will be found in the 2023 national budget that Malacanang will soon submit to Congress.

If no funding provision will be made in next year’s proposed appropriations, which is understandable as the budget preparation by the Executive is now at its last mile and only the finishing touches are being applied, then it will be up to Congress to save the law from ending up as an unfunded mandate.

Finding the fiscal space to fund this law can be tackled in the LEDAC meeting which I would recommend that President Marcos, in the spirit of inter-branch dialogue, call soon.

By the way, the P50 billion estimated cost only covers the seniors presently enrolled in the program. 

It does not include persons who turn 60 this year, nor those who were already 60 and above but who, for one reason or another, have been left out of the list.

One estimate pegs at P60 billion the amount needed to enroll all qualified beneficiaries, including pension-nadas denied of this old-age safety net.

I thank President Marcos for allowing this bill to become a law.  Both branches should now work together on how to fund it.