Manila - Philippine President Gloria Macapagal Arroyo on Tuesday announced a fresh 4-billion-peso (88.88-million-dollar) subsidy programme to help poor Filipinos cope with higher prices.

Arroyo said 1 billion pesos would help poor consumers pay their electricity bills while another 1 billion pesos would be used to fund microfinancing projects for wives of public transport workers.

The rest of the money would finance the upgrade of government hospitals to accommodate more indigent patients, a programme for senior citizens and the rehabilitation of typhoon-devastated areas, she said.

"We will continue to provide funds to help sectors who are severely affected by the rising oil prices," Arroyo said at a cabinet meeting where she ordered the allocation of the funds.

Last month, Arroyo also ordered the release of 4 billion pesos to finance a subsidy programme for the poor and social welfare projects.

Half of the money was spent on dole-outs to poor families to help them pay their electricity bills.

The government said the funds for the subsidy programmes were coming from government revenues from the value-added tax (VAT) on oil and petroleum products.

Arroyo has repeatedly rejected calls by some legislators for the government to suspend the collection of VAT on oil products to help reduce prices.

Last week, the Philippine military's intelligence chief warned that spiraling food and fuel prices could threaten national security as he accused anti-government groups of exploiting the issue.

Brigadier General Romeo Prestoza said the military's intelligence unit has been monitoring food and energy security in the country in a bid to prevent attempts to cause disturbances.

He charged anti-government groups affiliated with communist rebels with taking advantage of the high prices to attack the administration and accused them of exaggerating the problem. (dpa)