P1.3 trillion economic stimulus bill gets House support

MANILA, Philippines — An overwhelming majority of members of the House of Representatives have expressed support for the proposed P1.3-trillion economic stimulus measure to address the impact of the coronavirus disease 2019 (COVID-19) crisis on livelihood.

House economic affairs committee chair Sharon Garin revealed that 250 members or 83 percent of House members had signed up for authorship of the proposed Philippine Economic Stimulus Act (PESA) prepared by their economic stimulus panel.

“This is an unprecedented feat of a Congress that cares. We will set the plenary deliberations next week,” the AAMBIS-OWA party-list representative said yesterday.

The PESA, co-authored by Albay Rep. Joey Salceda and Marikina Rep. Stella Quimbo, has been submitted to the chamber’s Defeat COVID-19 Committee for approval on first reading before its submission to the plenary for second and third readings.

The proposed measure seeks to provide P155 billion to a wage subsidy program for workers of private companies affected by the crisis, particularly by the two-month enhanced community quarantine as well as to cash-for-work and student loan programs.

Through the Department of Labor and Employment, the wage subsidy program would cover payroll costs of non-essential companies severely affected by the quarantine period through wage subsidies with a range of 25 percent to 75 percent for two months.

The bill also seeks allocation of P140 billion for zero and negative interest loan program to be implemented by the Land Bank of the Philippines and Development Bank of the Philippines as well as loans for micro, small and medium enterprises through the Small Business Corp. and Philippine Guarantee Corp.

Companies will be given a maximum loan amount equivalent to 50 percent of their labor costs payable in three to five years.

On the other hand, P238 billion would be allotted as sectoral assistance programs for specific industries to be implemented by the Department of Trade and Industry, Department of Tourism, Board of Investments and Department of Transportation.

Lastly, P50 billion will also be appropriated for capitalization to be implemented by the National Development Corp.

The PESA bill also seeks the appropriation of P650 billion to enhance the Duterte administration’s “Build, Build, Build” program for a period of three years starting in 2021. The enhanced BBB is expected to create 1.5 billion jobs.

The PESA bill also covers funding of P20 billion for mass testing nationwide.

Deputy Speaker Mikee Romero expressed support for the proposed measure.

“This measure will not only provide a lifeline to companies, but will also ensure that workers get to keep their jobs. This is very crucial for economic recovery,” the 1-Pacman party-list representative pointed out. 

The House is set to pass an economic stimulus measure before Congress adjourns sine die on June 3.