Two economists on Saturday said they were not impressed with the Arroyo administration’s program to provide subsidies supposedly to mitigate the impact of rising fuel and electricity prices.

Malacañang announced Tuesday a P2-billion power subsidy for poor families. On Friday government began distributing P500 each for lifeline users or households consuming 100-kilowatt hours a month or less. The pay out started in Metro Manila to lifeline customers of Manila Electric Co. (Meralco).

The two economists, Prof. Leonor Briones who is a former National Treasurer and Benjamin Diokno who is a University of the Philippines economist and former Budget Secretary, insist that the handout is a palliative solution to the high cost of electricity.

Second, they said, the president should not be touching funds that were not allocated in the 2008 budget or without permission from Congress.

“Matagal na rin ako sa gobyerno pero di pa ko nakakita ng, for the first time mamimigay ka ng cash sa mga tao… wala naman akong nakikita sa 2008 budget na fuel subsidy,” said Diokno.

“Will it solve the power crisis? Two, will it solve your poverty problem? I don’t think so… Dapat i-challenge ng media, i-challenge ng civil society ang Congress because the power to make decisions as to what to do with the public’s money is in Congress,” said Diokno.

The two economists said government should instead use the P2-billion for long-term solutions for programs like alternative sources of energy.

They believe that there is also no certainty that the beneficiaries of the fund would use the money to pay their electricity bills.

For Diokno and Briones the Arroyo administration may have had other motives.

“The only gain I see of course is political,” said the former National Treasurer.

“Dapat permanent, long term ang solution hindi itong parang pampapogi lng talaga,” said Diokno.