P628B needed for PH ‘economic stimulus strategy’ – Sotto

MANILA, Philippines — Senate President Vicente Sotto III said an estimated P628 billion would be needed to fund his proposed economic stimulus strategy which includes, among others, mass COVID-19 testing, wage subsidies for workers, and assistance to several sectors affected by the coronavirus pandemic.

 Senate President Vicente C. Sotto III/PHOTO Henzberg Austria, Senate PRIB

Sotto earlier filed Senate Bill No. 1542 which seeks the establishment of an “economic stimulus strategy for the country’s growth and development” to mitigate the impact of the health crisis.

“Yung (The) estimate dun sa (in the) bill..dun sa (for) mass testing, wage subsidies tapos yung maaaring mga (and then the possible) loans for MSMEs (micro, small and medium enterprises), loan guarantees, assistance to tourism or transportation industry, assistance to manufacturers, important exporters and even service sectors and then yung (for the) agriculture fisheries sector…for 2020 ang expected natin dito, kakailangan natin ng mga (we would need) P548 billion for the entire year,” Sotto told reporters in an online interview.

To sustain the economic stimulus strategy, Sotto said the government would need around P80 billion for 2021.

Asked if the P80 billion would be considered as a part of the national budget for next year, the Senate President said the Department of Budget and Management (DBM) is already studying the possibility of accommodating the said amount.

“As we speak pinapagusapan na ng Department of Budget and Management kung pano ia-accomadate pero depende nga dito sa papasa natin kung maipapsa kagad natin ito. But I’m sure they will try to accommodate it already,” Sotto said.

(As we speak, the  Department of Budget and Management is studying how to accommodate this but it still depends on whether we are able to pass this immediately. But I’m sure they will try to accommodate it already).

According to the senator, foreign loans or unspent budgets from the previous years could be possible sources to fund the proposed economic stimulus strategy.

Among the salient features of Sotto’s bill include:

– the mandatory immediate mass testing for COVID-19;

– wage subsidies to non-essential businesses, freelancers, self-employed and repatriated overseas Filipino workers (OFWs);

– expansion of the Tertiary Education subsidy provided under Republic Act 10931 to include students whose families currently facing financial difficulties due to the various community quarantines; and

– waiving of registration and other related fees and the grant of special trading accommodations for a limited time to micro, small and medium enterprises plus start-ups (MSMEs+)

The measure would also direct the Land Bank of the Philippines and the Development Bank of the Philippines to establish a Special Interest-Free Loan Fund and provide interest-free loans to non-essential businesses and MSMEs+.

The Department of Tourism (DOT) and its sub-agencies would likewise be required to assist critically impacted DOT-accredited tourism enterprises.

“Our situation could get worse if our government [does not] act swiftly,” Sotto said in an earlier statement., adding that the country’s economic base “could collapse if urgent measures are not set in place the soonest time possible.”