Stimulus package

It is a critical piece of legislation that calls for urgent congressional action.

And with deft shepherding and appealing to their patriotic duty, the chairman of the congressional panel tackling the massive and historic measure passed muster at the committee level.

It is expected to breeze through the plenary on the sheer urgency of its purpose – put the economy back on a growth track.    

And credit must go to where it rightfully belongs-- Majority   Leader Martin Romualdez

The House Defeat Covid-19 Committee has approved an economic stimulus package worth around P1.3 trillion to help the economy recover from the impact of the coronavirus pandemic.

Romualdez, also chairperson of the DCC, said the proposed Philippine Economic Stimulus Act aims to restore economic growth, maintain employment levels, and expand the productive capacity of the country in the aftermath of Covid-19.

“The economic stimulus program is meant to ensure business operations and job retention in this time of Covid-19 pandemic,” he said.

The bill seeks to mandate immediate mass testing for Covid-19 with an allocation of P10 billion for this year and another P10 billion next year.

Wage subsidies worth P110 billion shall be granted to non-essential businesses, freelancers, the self-employed, and repatriated overseas Filipino workers.

Of the total, P30 billion would  be allocated for the cash for work program of the Department of Labor and Employment.

The bill also ses to provide allocations for loans for various sectors, which include:

- loans for micro, small, and medium enterprises  worth P50 billion for 2020 and P45 billion for 2021 under the Small Business Corp.;

- interest-free loans worth P50 billion under the Land Bank of the Philippines and the Development Bank of the Philippines;

- and loan guarantee amounting to P40 billion by the Philippine Guarantee Corp.

Other forms of assistance would receive funding under the bill, including P10 billion as additional assistance for MSMEs this year; P58 billion for the tourism industry; P75 billion for the transportation industry; P44 billion for the manufacturers, importers, exporters, and service sectors; and P66 billion for the agri-fishery sector.

The sum of P25 billion would be allotted this year and another P25 billion next year to the National Development Co. in order to minimize permanent damage to the economy and enable faster recovery of certain critically-impacted businesses.

The proposed bill would also include an enhanced "Build, Build, Build" program worth PHP650 billion in three years starting 2021.

Meanwhile, the Department of Trade and Industry  is seeking the bill’s urgent passage, which  aims to provide immediate assistance to workers and businesses and help the economy recover from the impact of the coronavirus disease 2019  pandemic.

“We affirm the need to help sustain the income of workers and businesses adversely impacted by the pandemic as we gradually reopen our economy,” Trade and Industry Sec. Ramon Lopez said in a statement.

Lopez thanked the House of Representatives led by Speaker Alan Peter Cayetano and Majority Leader Martin Romualdez for their strong support to revive the economy.

The bill is aimed at restoring business confidence and operations, as well as preventing business closure prior to the imposition of the enhanced community quarantine. 

It has also been the subject of many consultations and hearings under the Committees on Economic Affairs under Chairperson Sharon Garin and Trade and Industry under Chairman Wes Gatchalian, which consolidates the proposals of Albay 2nd District Rep. Joey Salceda and Marikina Rep. Stella Luz Quimbo.