GMA backs ARISE passage to cushion pandemic impact
FORMER President Gloria Macapagal-arroyo, who presided over the country’s remarkable recovery from the 2003 to 2005 fiscal crisis and the 2008 to 2009 global financial crisis, has backed the immediate passage of the P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy (ARISE) to mitigate the impact of the Covid-19 pandemic.
In a news statement, Arroyo said strong government action will revive the economy from the crisis.
“I have just seen Rep. Joey S. Salceda’s presentation regarding the Economic Stimulus Act of 2020. It echoes the strong action taken by the US government in the wake of the 2008 global financial crisis. It bailed out the key economic players and directly assisted strategic sectors such as the auto industry,” she said.
“In the end, as evidenced by the robust US economy up to the period just before the Covid-19 pandemic, strong government action did the job of reviving the economy. Rep. Salceda’s proposal is similar in approach, but targets what is identified as our vulnerable sector in the post-covid-19 crisis, such as the SMES [small and medium enterprises] and similar ‘backyard’ businesses,” she added.
In the mainstream corporate sector, Arroyo, also a former Speaker of the House, said most corporations would likely be able to recover naturally, except for the obvious losers in the crisis, such as the airline industry.
“The proposal is correct to focus on what can be done in the next two years within the term of President Duterte, not so much for political reasons, but so that it would not unduly tie the hands of the next administration,” she said.
“Other strengths of the proposal are the stimulus to be provided by continuity with the ‘Build, Build, Build’ infrastructure program, and some long-desired structural reforms such as in the agricultural sector,” she added.
But she said huge budgetary cost of the economic stimulus could be a cause of concern.
From the point of view of a former President, not just an economist, Arroyo said the proposal should be the starting draft, then it would be up to those with different views on the fiscal impact to temper the program as appropriate.
“There is of course a budgetary cost to the proposal, and if I were to discern events based on my limited information from the outside looking in, there might arise a gap between the proposal on the one hand, and on the other hand, the views of those in the economic and the multilateral community who would be concerned about our country’s fiscal health,” she added.
V-shaped
FOR his part, Salceda said early detection, correct diagnosis and policy prescription and decisive action delivered one of the most impressive V-shaped recoveries in the world and in Philippine history.
“We exerted our utmost efforts to be just as responsive this time. After 37 Zoom meetings by congressional leaders and members with industry leaders, government agencies and civil-society organizations, the House has come up with one of the most comprehensive Economic Stimulus Program signed by an unprecedented 267 members of the House of Representatives,” he said.
“The sooner we perk up the animal spirits of consumers, entrepreneurs, businesses and investors, the quicker and the more V-shaped the recovery can be secured in 2020,” he added.
Majority Leader Martin Romualdez on Tuesday said the approval on second reading of the proposed ARISE Act will help President Duterte to kick-start the shuttered economy.
Romualdez, the chairman of the powerful House committee on rules, said ARISE, or the economic stimulus for workers will protect close to 16 million workers, create 3 million short-term jobs and other measures to mitigate the impact of the coronavirus disease 2019 (Covid-19) over the period of three years.
“We have to jump-start our economic activities, while keeping our people healthy, the soonest time possible to ensure our survival as a nation,” said Romualdez on the measure being eyed for third and final reading approval before Congress adjourns session this week.