House warms up to stimulus package

THE proposed P568-billion stimulus package to rejuvenate the economy that has taken a beating from the coronavirus disease 2019 (Covid-19) pandemic continues to gain more supporters at the House of Representatives ahead of plenary deliberations.

Defeat Covid-19 Committee subpanel Co-chairman Rep. Sharon Garin said 250 lawmakers, or 83 percent of the House members, had signed up for the authorship of the Philippine Economic Stimulus Act (PESA) of 2020.

“Truly an unprecedented feat of a Congress that cares. Hats off to all the authors and members!” Ang Asosasyon Sang Mangunguma Nga Bisaya-OWA party-list Representative Garin said.

The still-unnumbered bill, consolidating 10 proposals, including those from principal authors and economist- lawmakers Joey Salceda of Albay and Stella Quimbo, is up for second reading at the plenary next week.

Aside from the initial P568 billion to cover 2020, at least P700 billion more will be rolled out in the next three years.

PESA allocates P20 billion for mass

testing to alleviate the “fear factor” of workers and customers and facilitate the reopening of the economy.

The bill also includes transitional, financial and structural interventions to assist businesses.

The transitional interventions amount to at least P140 billion for wage subsidies; cash for work assistance under the Department of Labor and Employment’s Tulong Panghanapbuhay sa Ating Displaced/ Disadvantaged Workers; assistance for tertiary students in private higher education institutions; economic relief for overseas Filipino workers and loan extension for employees; regulatory relief for business entities; and relaxing of regulations and waiving of registration fees for micro, small and medium enterprises (MSMEs).

There is also at least P185 billion for loan programs for MSMEs, interest-free loan programs under the Land Bank of the Philippines and the Development Bank of the Philippines, credit mediation and refinancing service under the Department of Trade and Industry, and government loan guarantees.

A total of P238 billion will go to different sectors. P10 billion will be set aside for MSMEs, P58 billion for tourism, P44 billion for industry and service sectors, P70 billion for transportation, and P56 billion for agriculture and fisheries.

Structural interventions include P50 billion for programs under the National Development Corp. and P650 billion for the Enhanced Build, Build, Build Program for the next three years.