Manila Mayor Francisco “Isko Moreno” Domagoso. FILE PHOTO
MANILA, Philippines — Presidential aspirant and Manila Mayor Francisco “Isko Moreno” Domagoso revealed on Thursday his two-pronged plan to rehabilitate micro, small, and medium enterprises (MSMEs) that were affected by the COVID-19 pandemic, which includes providing low interest loans.
Moreno said that should he win the presidential race in 2022, his program for rehabilitating MSMEs will be similar to the Marshall Plan that helped in the economic recovery of European countries after the World War II.
He said his “mini” version of the program will be divided into two approaches. The first is the partnership of local government units with national agencies such as the Departments of Trade and Industry and Agriculture, and Land Bank of the Philippines to draw up a plan on how to help MSMEs restart their businesses.
“The other part of the Marshall Plan is giving out loans, through LGUs, using their Mandanas incremental windfall to assist MSMEs through low interest loans. Ang tawag po diyan ay creative financial engineeing or ISKOnomics 102,” Moreno told employees of Pampanga’s Best during his visit in the province.
ISKOnomics 101 refers to the 50 percent tax cut on fuel and electricity under the principle of delayed government gratification.
Moreno pointed out that because of the Mandanas Ruling by the Supreme Court in 2018, the internal revenue allotment (IRA) are programmed to increase by 55 percent in the 2022 budget, reaching P1 trillion or 4.8 percent of the country’s gross domestic product compared to 3.5 percent of the GDP this year.
“Kaysa magastos sa kung saan-saan lang, hihikayatin ko, sakaling maging pangulo ako, ang mga LGU na gamitin ang dagdag na kita sa maraming taon. Isanla nila ang IRA sa DBP (Development Bank of the Philippines) at maski pribadong mga banko na maraming pera ngayon dahil mahina ang loans dahil naman sa walang negosyo, para magtayo ng pabahay, iskwelahang kumpleto sa computers, at ospital,” the presidential aspirant said.
(Instead of it being spent on other things, I will encourage LGUs to use the additional revenues for many years. They should pawn the IRA to the DBP and even private banks because loans are weak now, so we can build houses, schools equipped with computers, and hospitals.)
Citing his experience in Manila, Moreno said LGUs can never go wrong with investing in housing, education, and health as these are basic needs of the public.
“We know that by investing in housing, at least, the multiplier effect is 17 times, so your peso will go 17 times much longer in housing. That has never been done in the Philippines in the past,” he said.
Moreno further noted that in more than two years of his leadership in Manila, he was able to initiate mass housing projects including the Basecommunity, Tondominium 1 and 2 which will be finished soon, Binondominium 1 and 2, and the Pedro Gil and San Sebastian Residences that are both under construction.
He noted that the Manila City government likewise facilitated the construction of the 344-bed Manila COVID-19 Field Hospital at the Quirino Grandstand that started operating last June; the 10-storey Bagong Ospital ng Maynia which will be operational by December, and; the President Corazon C. Aquino General Hospital that is now being built within the Basecommunity compound.
Furthermore, new school buildings equipped with computers, air conditioning units and elevators are also being built at the Rosauro Almario Elementary School in Tondo, Dr. Carlos Albert High School in Sampaloc, and the Manila Science High School along Taft Avenue, according to the mayor.