Metro Manila (CNN Philippines, April 8) – A lawmaker proposed on Wednesday a ₱1-trillion stimulus fund that would help provide relief to a reeling economy battered by the COVID-19 pandemic.
Albay 1st District Rep. Edcel Lagman said his proposed package aims to continue the government’s social and labor amelioration programs while helping all kinds of businesses affected by the health crisis.
Lagman’s proposal came a day after President Rodrigo Duterte extended the Luzon-wide enhanced community quarantine up to April 30.
“The funding shall include assistance not only to vulnerable families and displaced workers but also to other affected persons belonging to the middle class,” said Lagman in a statement.
The national government, through the Department of Social Welfare and Development, has implemented the ₱200-billion Social Amelioration Program for vunerable households, with ₱5,000 to ₱8,000 in cash available for each eligible family.
The emergency subsidy program is being instituted through the Bayanihan to Heal as One Act, the law which had given more powers to the national government to battle the pandemic.
The Department of Budget and Management said it has also released the additional ₱30.824-billion Bayanihan Grant on Tuesday for local government units as part of the government’s anti-COVID-19 response.
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The proposed stimulus package would also extend government’s help to all kinds of businesses affected by the pandemic, said Lagman, after consulting with the National Economic and Development Authority.
“We agreed that not only micro, small and medium enterprises need assistance but also major corporations like airlines, shipping, land transport, hotels, export firms, and manufacturers, among others, need lifelines to recover and stay afloat,” he added.
House Minority Leader Bienvenido Abante Jr. also called on Tuesday for a stimulus package for employers so that they can continue to pay their employees and keep their businesses afloat during the crisis.
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Lagman said his proposed ₱1-trillion stimulus fund can be sourced from the following:
1. Monetization by the Bangko Sentral ng Pilipinas (BSP) for budget support of an allowable portion of the country’s foreign reserves which was at a high of $83.2-billion as of end-March 2020, provided a six-month import buffer is not jeopardized.
2. Issuance of bonds by the Bureau of the Treasury (BTr) which the BSP shall purchase together with other qualified bidders.
3. Extension and expansion of the “Tax Amnesty Act” or R.A. No. 11213.
4. Grant of tax credit or special tax discounts for advance tax payments, subject to subsequent reconciliation of the actual tax due.
5. Sale of government assets.
6. Advances of dividends due to the national government from Government-Owned and -Controlled Corporations (GOCCs).
7. Additional contributions from the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO).
8. Legitimate savings from the 2019 and 2020 General Appropriations Acts (GAAs) like: (a) 10% across the board reduction of MOOE of all departments and agencies; (b) reduction of procurement of military hardware, IT equipment and facilities, and office equipment, among others; and (c) drastic reduction of foreign travel, seminars and conferences.
9. Reduction in personal services (PS) by not creating new positions and not filling up vacant positions, among others.
Lagman assured that these funding sources will satisfy the constitutional requirement in enacting a special appropriations bill.
