Senator Alan Peter Cayetano urged the government to implement a more efficient approach in distributing financial assistance noting how administrative costs are eating up on the funds instead of benefitting Filipinos in need.

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.”

But 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 during the start of the AICS (Assistance to Individuals in Crisis Situation) when the amount was still small, the DSWD said that 18 to 20 percent goes to administrative costs),” Cayetano said during the August 14 Senate briefing of the Development Budget Coordination Committee (DBCC).

“But when the AICS fund increased, they asked for additional funds,” he said.

Moreover, a huge percentage is also 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.

But the senator noted that these figures do not account for salaries and recurring costs in cash aid distribution.

“That doesn’t include their sweldo and MOOE (Maintenance and Other Operating Expenses),” he said.

Thus, he said state economic managers should 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.