House pushes for ₱568-B economic stimulus package

Seeking to address the ₱1.2trillion economic loss brought about by the months-long lockdown to prevent the spread of COVID-19 infection, the House of Representatives is pushing for a ₱568-billion Economic Stimulus Package to cushion the impact of the coronavirus disease pandemic on the country's economy.

House Ways and Means Chairman and House Economic Stimulus Cluster Co-chairman Rep. Joey Sarte Salceda said the proposed ₱568-billion Philippine Economic Stimulus Act will be presented to the plenary today, May 18.

"Isa-submit na po ang Philipine Economic Stimulus Act. Ito ay pinagkaisahan na po ng liderato ng House of Representatives na talagang itong ₱568 billion ang siya po naming ipupursige dahil ito po ang dapat, at sa tingin namin hindi po nito sinusugal ang kinabukasan ng karamihan (We will submit the Philippine Economic Stimulus Act. This was agreed upon by the House leadership that we will push for ₱568 billion because this is right, and we think, we are not gambling the future of the majority)," the Albay 2nd district representative said in a radio interview.

"In fact, ito ay proportional sa problema na hinaharap natin. Napakalaking crater ang ginawa ng COVID sa ating ekonomiya so ito po ang pantapal natin (In fact, this is proportional to the problem that we are facing. The COVID has left a huge crater in our economy so this will cover it)," he stressed.

Salceda, an economist, noted that because of the prolonged enhanced community quarantine, the total economic loss now stands at ₱1.2 trillion.

"For the second quarter, ₱892 billion ang foregone GDP (Gross Domestic Product). For the first quarter, mga nasa ₱320 billion po. Masasabi natin po na umabot sa ₱1.2 trillion," he said. (For the second quarter, ₱892 billion is the foregone GDP . For the first quarter, it reached ₱320 billion. We can say that the total GDP loss reached ₱1.2 trillion.)

Salceda said under their proposed economic stimulus package, the Micro, Small, and Medium Enterprises (MSMEs) in the country, which employ around 4.1 million formal economy workers, will be given assistance.

He said two kinds of assistance will be given to the MSMEs — ₱50 billion loans under Small Business Corp., and ₱10 billion assistance under the Department of Trade and Industry (DTI).

Based on the Philippine Statistics Authority (PSA) data, 99.52 percent or 998,342 of the 1,003,111 business enterprises operating across the country are MSMEs.

Salceda said the ₱568-billion Economic Stimulus Package also includes ₱110-billion wage subsidies under Department of Labor and Employment (DOLE), and the ₱30-billion Cash-ForWork under DOLE-Tulong Panghanapbuhay para sa Ating Disadvantaged/ Displaced Workers (TUPAD).

"May nakalaan na ₱30 billion para sa informal sector dahil napakarami sa kanila ang nawalan ng trabaho. Kahit na nga ngayon, dahan dahan natin pinapanumbalik ang ating ekonomiya, subalit hindi lahat yun sa ngayong taon ay makababalik sa kanilang trabaho," (There is ₱30 billion allocated for the informal sector because many have lost their jobs.

Even though we have opened up the economy, not all workers can return to their work this year), he said.

He said those who lost their jobs during this time can be tapped and trained as contact tracers to boost the government's contract-tracing capacity.

The Lower Chamber's proposed fiscal package includes ₱130 billion for interest-free loans with the Land Bank of the Philippines (LBP) and Development Bank of the Philippines (DBP), and ₱10 billion for loan guarantees, Salceda said.

Under the House economic package assistance, the following sectors will be assisted: Tourism (₱58 billion), Transportation (₱75 billion), Industry and Service Sectors (₱44 billion); and AgriFishery (₱66 billion), he said.

The ₱25-billion capitalization for National Development Corp. is also included in the stimulus package.

Salceda said to recover the estimated ₱1.2 trillion economic losses, there should be enhanced implementation of the government's “Build, Build, Build” (BBB) program, which seeks to create 1.5 billion jobs.

He noted that under House's fiscal package, an enhanced BBB program worth ₱650 billion is being pushed in three years starting 2021.

Salceda said to prevent the second wave of COVID-19 infections, the government should strengthen its testing, contract tracing, and treatment capacities.

"Habang dahan-dahan na nire-release natin ang mga tao sa ekonomiya, dapat mas masipag din ang gobyerno sa paghanap ng kaso, sa pagtest, at pagtreat," (While our people are slowly returning to work, opening up our economy, our government should work harder to locate the cases, conduct tests, and treat them), he said.

He noted that in terms of treatment, the treatment facilities in Metro Manila also recorded 30 percent utilization rate.

"Isang malaking problema ay tracing. Very important ang tracing capacity," (The big problem is tracing. The tracing capacity is very important.) Salceda said.

The House leader warned that if the lockdown continues, it will heavily impact the economy and the delivery of other health services will be taken for granted.