Cayetano sees 2021 budget ‘frontlining smaller businesses’ after coronavirus crisis
MANILA, Philippines — While the national budget for 2021 is still in the works, Speaker Alan Peter Cayetano believes that it would give priority to smaller businesses in the country affected by the coronavirus pandemic.
In an ambush interview, Cayetano said he sees the need for a stimulus package to help micro, small and medium enterprises (MSMEs).
“Hindi pa natin maplano totally ‘yung 2021 budget because nagba-budget fall at nagbabago pa. But we can already predict that kailagan ng malaking stimulus at kailangan ng tulong ng micro, small and medium enterprise,” Cayetano told reporters.
(We can’t still plan the 2021 budget totally because this would always subject to change. But we can already predict that we need adequate stimulus package to help micro, small and medium enterprise.)
“So you will probably see a 2021 budget that is really frontlining smaller businesses,” the Speaker added.
While Cayetano recognized that bigger businesses would also need help, “they know how to recover.”
“Napagdaanan na nila (big businesses) ‘yung Asian crisis – ‘yung 2008 financial crisis ‘di ba? And our banking system is solid, pero ‘yung maliliit lalo na ‘yung may utang na, isipin n’yo po ‘yung mga tinamaan ng Yolanda, ‘yung mga poultry doon, may utang na sila tinamaan ng Yolanda tapos ngayon na naman ulit,” Cayetano said.
(The big businesses weathered the Asian crisis – the 2008 financial crisis, remember? And our banking system is solid, but the marginal businesses were saddled with debts like those hit by Supertyphoon Yolanda..the poultry farms there…they incurred heavy debts due to destruction caused by Yolanda then comes this new crisis.)
On Tuesday, Marikina City 2nd District Rep. Stella Quimbo proposed a P370 billion stimulus package to address the economic impact of COVID-19 to the country—including businesses.
The P370 billion-worth of funds shall be appropriated as a stimulus package for those affected by the COVID-19 outbreak through labor retention via business continuity, Quimbo said.
In December 2019, the Development Budget Coordination Committee (DBCC) endorsed spending of P4.6 trillion for 2021, a P500 billion increase from the 2020 budget.
However, due to the coronavirus pandemic, House committee ways and means chairman Albay Rep. Joey Salceda proposed “an increase in the budget of 5-6 percent, instead of DBCC’s 10-11 percent.”
Salceda explained that the Department of Finance (DOF) is expecting lower revenue collections this year as many businesses suspended their operations to comply with the protocols of the enhanced community quarantine in the Luzon region.
Deputy Speaker for Finance Luis Raymund Villafuerte, however, disagreed with this proposal, saying that the House could adopt the P4.6-trillion DBCC proposal and the expected more significant shortfall could be filled with more borrowings.
READ: Palace-House 2021 budget huddle
For more news about the novel coronavirus click here.
What you need to know about Coronavirus.
For more information on COVID-19, call the DOH Hotline: (02) 86517800 local 1149/1150.
The Inquirer Foundation supports our healthcare frontliners and is still accepting cash donations to be deposited at Banco de Oro (BDO) current account #007960018860 or donate through PayMaya using this link.
