Metro Manila (CNN Philippines, December 3) — The government’s economic team is looking at plans to extend the validity of the Bayanihan 2 and the 2020 budget as an added stimulus measure towards the recovery of the Philippine economy next year.
During a briefing on Thursday, Finance Secretary Carlos Dominguez III said the unspent portions of the said fiscal measures, together with the proposed 2021 budget, are vital to the economic rebound next year.
“We believe that the 2021 budget including the extension of the unspent portions of the 2020 budget plus the Bayanihan 2 are very, very important elements in stimulating the economy,” he said.
Budget Secretary Wendel Avisado added that the proposed 2021 budget is already a huge stimulus for the economy, especially when coupled with further easing of restrictions and faster implementation of government programs.
Acting Socioeconomic Planning Secretary Karl Kendrick Chua reiterated that the government’s infrastructure spending for next year, which is at ₱1.169 trillion, representing 5.9% of GDP, will also have a major role towards a bounce back.
Dominguez said that having another stimulus package may not be an option, citing instances where this kind of intervention was not able to push other economies back up, especially when not implemented properly.
He added that bringing back consumer confidence is vital in boosting the country’s recovery.
“I am pretty sure that a stimulus package… is not really going to work as well as if we do the budget stimulus as well as give people the confidence that they are not going to get sick or die of COVID-19,” Dominguez noted.
In November, several lawmakers filed a version of Bayanihan 3 for additional assistance amid the COVID-19 pandemic as Bayanihan 2 is set to expire in less than a month.
As for next year’s allocation, Congress has completed its bicameral conference committee deliberations for the proposed ₱4.5 trillion national budget. The lawmakers agreed that committee chairs from both chambers will be reconciling differences in the two versions.
For 2022, the Development Budget Coordinating Committee is proposing a budget of ₱5.024 trillion.
READ: Economic team eyes 8-10% growth by 2022 after worse-than-expected plunge this year
