MANILA, Philippines -- To show that revenues from the value added tax (VAT) on oil are trickling down, the government plans to spend P4-P5 billion for the rehabilitation of typhoon-ravaged areas, upgrade of hospitals, and possibly, another round of direct cash subsidies to the poorest families, officials said.

At a news conference in Malacañang on Wednesday, Budget Secretary Rolando Andaya Jr. and Finance Secretary Gil Beltran said the money would come from excess revenues from the VAT on oil in the second quarter of the year.

In the first quarter, Andaya said government realized about P4.6 billion from excess revenues, P2 billion of which was spent on a one-time P500 cash subsidy to lifeline users of electricity, P1 billion for college scholarships and student loans, and P1 billion to help owners of jeepneys, buses, and taxis convert their engines from using diesel or gasoline-fed to much cheaper liquefied petroleum gas or compressed natural gas.

President Gloria Macapagal-Arroyo called this the "fruit of the VAT."

Andaya said he would propose to Arroyo that this time, excess revenues are used to rehabilitate typhoon-stricken areas and upgrade hospitals, especially in the provinces. He said there is also the possibility of the poor again receiving direct cash assistance.

"It's a combination of short-term and medium-term measures," he added.

He said he was just waiting for the Department of Finance (DoF) to certify how much of the excess revenues can be spent for his department to start disbursing the money.

The DoF said it expects P73 billion in revenues from the VAT on oil this year.