Solon proposes P1-T ‘stimulus package’ for families, businesses
MANILA, Philippines — A lawmaker on Wednesday proposed a P1-trillion “stimulus package” to help families and businesses affected by the coronavirus disease (COVID-19) pandemic.
Albay 1st District Rep Edcel Lagman said the funds can be used for the government to continue its social and labor amelioration program not just for low-income households, but also for middle-class families.
Likewise, Lagman added that National Economic Development Authority (NEDA) Secretary Ernesto Pernia also agreed that both micro, small and medium enterprises (MSMEs) and major corporations “need lifelines to recover and stay afloat.”
These major corporations include airlines, shipping, land transport, hotels, export firms, and manufacturers, among others, Lagman said.
“Not less than P1-trillion is needed for a stimulus package for government to continue its social and labor amelioration assistance and to provide a lifeline for distressed businesses,” Lagman said in a statement.
Lagman said that the P1-trillion stimulus can be sourced from the following:
- Monetization by the Bangko Sentral ng Pilipinas (BSP) for budget support of an allowable portion of the country’s foreign reserves which was at a high of $83.2-billion as of end-March 2019, provided a six-month import buffer is not jeopardized;
- Issuance of bonds by the Bureau of the Treasury (BTr) which the BSP shall purchase together with other qualified bidders;
- Extension and expansion of the “Tax Amnesty Act” or R.A. No. 11213;
- Grant of tax credit or special tax discounts for advance tax payments, subject to subsequent reconciliation of the actual tax due;
- Sale of government assets;
- Advances of dividends due to the national government from Government-Owned and Controlled Corporations (GOCCs);
- Additional contributions from the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO);
- Legitimate savings from the 2019 and 2020 General Appropriations Acts (GAAs) like (a) 10% across the board reduction of maintenance and other operating expenses (MOOE) of all departments and agencies; (b) reduction of procurement of military hardware, IT equipment and facilities, and office equipment, among others; and (c) drastic reduction of foreign travel, seminars, and conferences;
- Reduction in personal services (PS) by not creating new positions and not filling up vacant positions, among others.
“The requirement under Sec. 25 (4) of Article XI of the Constitution for a special appropriations bill to be supported by funds actually available as certified by the National Treasurer, or to be raised by a corresponding revenue proposal, is satisfied by the available funding sources as well as of revenue administrative measures which do not impose new taxes,” Lagman said.
Currently, the government is adopting Section 4 (c) of Republic Act No. 11469 or the Bayanihan to Heal as One Act which tackles the provision of an emergency subsidy to around 18 million low-income households in the country affected by the coronavirus pandemic.
The subsidy amounts from P5,000 to P8,000 a month for two months and is computed based on the “prevailing regional minimum wage rates.”
EDV
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