Govt ups spending for Covid-19 response

THE national government has accelerated the funding for its four-pillar socioeconomic strategy to fight the coronavirus disease 2019 (Covid-19) pandemic.

“The strategy has a combined value of P1.74 trillion or 9.1 percent of GDP (gross domestic product),” Finance Secretary Carlos Dominguez 3rd told lawmakers during a Senate hearing on Wednesday.

The latest amount is bigger than the earlier announced P1.49-trillion budget for the strategy.

Based on Dominguez’s presentation, the government will now spend P595.6 billion for Pillar 1 or the emergency support for vulnerable groups from the previous allocation of P589.97 billion.

The support measures include the P205-billion largest social protection program for 18 million lowincome families; P51-billion wage subsidy program for 3.4 million workers of small businesses; P120-billion credit guarantee program for small business owners; P139.9-billion proposed expansion in net operating loss carryover for five years; and the recalibrated Package 2 of the Comprehensive Tax Reform Program- Corporate Recovery and Tax Incentives for Enterprises Act, which will free up P42 billion worth of corporate income tax.

Meanwhile, the total amount for Pillar 2 was raised to P58.63 billion from the previous P58.55 billion.

“For pillar 2, we have marshalled resources to fight Covid- 19 to support our frontline healthcare workers and increase the testing, tracing and treatment capacity of our health system,” Dominguez said.

The funding for Pillar

3, on the other hand, was ramped up to P856.3 billion from P843 billion.

“The third pillar consists of a bold fiscal and monetary actions to finance emergency initiatives and keep the economy afloat. ( It) includes standby financing for our economic recovery plan and a P233billion liquidity infusion into the economy from the timely, anticipatory responses of the Bangko Sentral ng Pilipinas,” Dominguez added.

Lastly, he stressed that Pillar 4 or the recovery program that will help the government jumpstart economic activity and provide industries the assistance they need to get back on their feet amounts P846 billion. But it will be funded in large part by Pillar 3.

Earlier, the Finance chief said the national government already spent P352.7 billion for the four-pillar strategy.

MAYVELIN U. CARABALLO