House bent on bigger stimulus package
THE leadership of the House of Representatives is now looking for resources to fund a bigger stimulus package to continuously assist critically impacted industries.
Speaker Alan Peter Cayetano asked House Committee on Ways and Means Chairman Joey Sarte Salceda to look for sources of revenue to fund “the stimulus that we need.”
In June, the chamber approved House Bill (HB) 6709 or the P1.5trillion Covid-19 Unemployment Reduction Economic Stimulus (CURES) Act and HB 6815 or the P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill to help Covid19-affected industries.
Salceda, for his part, said Congress will find ways to fund the stimulus package by approving several revenue measures, which will provide the government the much-needed revenue to support the economy amid the fight against Covid-19.
These measures include the proposed motor vehicle road users’ tax, tax on compensation and tax on revenues of Philippine Offshore Gaming Operator (POGO), tax admistration reforms on proposed digital taxation.
“These proposals will yield about P591 billion in five years, more than enough to cover the period’s incremental debt payments due to our Covid-19 response and new programs to boost the economy.
He said other reforms that would provide additional revenue to the government are implementation of oversight into customs-bonded warehouses, full digitalization of the taxpayer filing and payment in the Bureau of Internal Revenue, and application of zero tax for some period and tax base expansion after for the MSMES.
However, Finance Secretary Carlos Dominguez III, at last Friday’s budget hearing, said the Philippine should look at the experience of other countries in providing stimulus. “I think it’s better to be conservative at this point and prepare for the long fight that is coming.”
Asked by Deputy Speaker Luis Raymund Villafuerte on the possibility of Bayanihan 3 or a bigger stimulus package, Dominguez replied: “It does not mean that spending a lot of money is going to save your productive capacity. What we want to do is support the productive part of the economy while also supporting the poorest.”
Dominguez continued: “If there is one thing about this pandemic, it is uncertain of how it’s going to develop. Not knowing that we have to preserve all our assets to make sure that we have enough stamina to run this marathon.”
Bayanihan 2
ALBAY Rep. Edcel Lagman, meanwhile, asked the economic managers why President Duterte is taking too long to sign the proposed “Bayanihan To Recover As One Act” or Bayanihan 2 despite the urgency of its enactment.
Lagman said the Bayanihan 2 enrolled bill was received on August 27, 2020, by the Presidential Legislative Liaison Office (PLLO) for immediate transmittal to the Office of the President.
“Although the P165.5-billion appropriated under Bayanihan 2 is meager and already delayed as a response to the ongoing pandemic, the failure of the President to sign it into law further stalls the release of the miniscule relief to affected citizens and distressed businesses,” he added.
Bayanihan 2 aims to strengthen the Covid-19 response capabilities of both national government and local government units (LGUS) and hasten the recovery of businesses hit hard by the coronavirus-induced global economic crisis.
Answering Lagman, Secretary Dominguez said the Office of President is still asking relevant agencies for their comments on the Congress ratified-version of Bayanihan 2.
“We [Economic Development Cluster] were advised that the Office of the President [OP] has requested for comments on the [Bayanihan 2] bill. As chairman of the cluster, I asked relevant agencies to submit their comments [Friday, September] so that the OP would review them, and if there is any comment that would relevant to the decison [of the President] whether to sign it or not. So I suppose that the process is ongoing,” said Dominguez.
Budget Secretary Wendel E. Avisado has said P140 billion of P165.5-billion Bayanihan 2 fund is now ready for release as soon as the President signs it into law. Welcome move–social Watch MEANWHILE, public budget watchdog Social Watch Philippines (SWP) welcomed the House leadership’s move to allow the active participation of people’s or civil society organizations (CSOS) in deliberations on the 2021 national budget.
The SWP made the statement over the weekend as the House prepared to start the deliberations of the P4.5-trillion National Expenditure Program.
The group also encouraged the Senate to do the same.
“Aside from bolstering the transparency effort of the government, the window of participation can actually assist in formulating more responsive budgeting, by increasing budget allocations for social developments, in which the group has considerable years of experience,” it said.
Recently, the SWP formally asked House Committee on Appropriations Chairman Eric Yap to allow the SWP to actively observe deliberations on the Fiscal Year 2021 Proposed National Budget.
The group is appealing to open
committee-level and plenary budget hearings on all agency budgets for public livestreaming to be available through the House of the Representatives social-media accounts.
The SWP is also requesting that committee provides a venue for CSO participation by giving the group access to the 2021 NEP budget documents, allowing SWP together with the ABI Cluster representatives to join in the Zoom meeting of the virtual budget deliberations of the House Committee on Appropriations of key agency budgets.
According to the group, the process will also allow them to formally present and submit position papers and alternative budget proposals for social development.