The subsidies that were created in the pandemic and are still ‘alive’

As a result of the covid-19 pandemic, The National Government implemented several measures to solve the economic crisis that the country was experiencing. The health emergency left several families without resources and without work or options to have basic living conditions.

In addition, sectors such as tourism, commerce, entertainment and others were severely affected. Social gaps widened, inequality deepened, and households living in poverty grew in number.

(Read: Solidarity Income is expanded).

Against this background, there were several subsidies that were delivered through programs such as Solidarity Income, VAT Refund and others. Currently these are the ones that are still in force.

SOLIDARITY INCOME

This subsidy, managed by the National Planning Department, seeks to help vulnerable families with financial support. So far, the program has benefited 3 million households in the country with a subsidy of 160,000 pesos per month.

Recently, the Minister of Finance, Juan Manuel Restrepo, announced that, starting in June, thanks to the Social Investment Law, the program will include differentiated payment valuesaccording to the number of household members and poverty levels.

This support would now include 4.08 million participating households. For the moment, the Government plans that the subsidy apply throughout 2022, as provided for in the national budget.

VAT REFUND

This economic support consists of lower-income families receiving resources that will alleviate the impact of the tax that taxes the consumption of products and services of the most vulnerable people.

(What’s more: Last cycle of registration to the Paef).

For the first year of the pandemic, in 2020, 1,000,000 households benefited from a return of 75,000 pesos during five cycles every two months. Over the months, support has been tried to expand up to 2 million people.

The last disbursement of the program is planned for February 2022 and the others, according to the Government’s bimonthly calendar.

FORMAL EMPLOYMENT SUPPORT PROGRAM

The Paef recently opened registrations to help entrepreneurs with payroll subsidies due to the impacts of the pandemic. The option will be enabled until February 10 and this will be the last call.

Through this initiative, micro and small employers, who at the end of 2021 continued to lose 20% or more of their income, will be able to receive aid.

The Pension and Parafiscal Management Unit (Ugpp) stressed that these are the last 3 cycles foreseen in the extension of the program established by the Social Investment Law and that the supports are equivalent between 40% and 50% of a minimum wage of 2021.

THE SUBSIDIES THAT ALREADY EXISTED AND WERE STRENGTHENED WITH THE PANDEMIC

Some financial aid was already being managed in the country even before the arrival of the coronavirus. However, with the pandemic, they were strengthened and coverage was expanded in several of these:

COLOMBIA GREATER

For elderly people in conditions of vulnerability or extreme poverty, the Government developed the Colombia Mayor program. This subsidy grants 80,000 pesos monthly for all municipalities in the country.

The next program payments will be made on February 15 and 25.

(Read: Saving for old age, the lesson of the Álvaro Lemmo casen).

FAMILIES IN ACTION

This program delivers different sums of money, depending on the number of minors that there is in the family and the type of incentive (educational or health) that is assigned. During the pandemic, registrations were reopened for the entry of more households.

Each city hall manages the delivery and establishes the schedule for the support. In this case, you must register, which for 2022 will be between July and August, once the electoral processes are completed.

(Keep reading: This way you can access the incentives for generating jobs).

YOUTH IN ACTION

Through the Department of Social Prosperity, support is given to young people living in poverty and vulnerability. In this case, monetary transfers are made so that they can continue and finish their studies.

The supports are between 400,000 to 600,000 pesos.

UNEMPLOYMENT SUBSIDY

This support is for dependent or independent workers who are unemployed. For 2022 the inscriptions were opened. Those interested in applying will receive an economic transfer of 2 minimum wages for 3 months. That is to say, 2,000,000 pesos for this year.

This benefit also covers people who do not receive an old-age, disability or survivors’ pension who have made contributions to a Family Compensation Fund for 1 continuous or discontinuous year in the last 5 years.

(Read: My house already 2022: how to access the subsidy and who can apply).

It should be remembered that for each of the subsidies you must verify that it complies with the stipulated requirements by the National Government. In some cases, the entities will make the selection based on different databases.

Of the subsidies that no longer apply is the Guaranteed Minimum Income that was in force in the city of Bogotá.

BRIEFCASE