Call special session to pass stimulus bill, Duterte urged

MANILA, Philippines — Malacañang has said that without revenue sources, there cannot be an economic stimulus package.

Still, President Duterte is being urged to call a special session of both the Senate and House of Representatives for the passage of a P1.3-trillion economic stimulus that the lower chamber had approved.

“Time is of the essence. We should approve this stimulus package to help various sectors crippled by the coronavirus disease 2019 (COVID-19) pandemic,” said Cagayan de Oro Rep. Rufus Rodriguez, who chairs the House committee on constitutional reforms.

“If we wait until August or September after we convene for our second regular session in late July, we will have wasted precious time,” Rodriguez added, noting that Congress will resume session only on July 27, when Duterte delivers his fifth State of the Nation Address.

The affected sectors have to be assisted soonest so that they could start to recover, according to the administration legislator.

“Financial aid should be available as the economy begins to gain momentum with the easing of quarantine restrictions in many areas of the country,” he said.

Rodriguez pointed out that the 1987 Constitution authorizes the President to call lawmakers to a special session “at any time during a recess.”

Congress went on recess on June 5 and will only be back in late July, while budget deliberations start by August.

The proposed economic stimulus package is contained in the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, which the House passed on third and final reading last week before Congress adjourned its first regular session.

Rodriguez, one of the bill’s authors, said the draft law seeks to allocate P568 billion for 2020: P110 billion for wage subsidies and P30 billion for cash for work, both for returning overseas Filipino workers and displaced domestic workers.

About P50 billion to micro, small and medium enterprises for loans from the Small Business Corp.; P10 billion aid from the Department of Trade and Industry for MSMEs; P130 billion for interest-free loans from Land Bank and Development Bank of the Philippines: P10 billion for guarantees from the Phil. Guaranty Corp. and P25 billion capitalization to National Development Corp. to invest in equity or give loans to businesses.

The bill also proposes to allocate P66 billion for the agriculture and fishery sector, P75 billion for the transportation industry, P58 billion for tourism, P44 billion for industries and services and P15 billion as financial aid to students, according to Rodriguez.

Some P650 billion will be allocated for Duterte’s enhanced Build, Build, Build infrastructure program for 2021, he said.

‘Better’ Bayanihan 2

Speaker Alan Peter Cayetano has assured the public that the House will pass a “better and responsive” second Bayanihan law that will institute mechanisms to improve the Social Amelioration Program (SAP) in the distribution of cash aid.

“Congress will be exercising its oversight functions to ensure that the mistakes of the past will not be repeated. We want also to ensure that SAP will be given to all Filipinos who need it most,” Cayetano said in a statement sent to the media the other day.

“We respect and acknowledge the tremendous work done by the departments involved, but our citizens cannot afford to wait that long. There must be a better way, and together we will find it,” he added.

The Taguig congressman expressed optimism that the second Bayanihan law will be better and more responsive, noting the proposed measure will improve on what has been achieved so far.

On June 3, the House committee of the whole passed House Bill 6953, which seeks to address the adverse impact of the global COVID-19 pandemic on the Philippine economy and society.

The Speaker reaffirmed the commitment of Congress to find solutions to prepare for challenges that the Filipinos will face as the country prepares for the new normal.

Under HB 6953, there will be a provision of emergency subsidy for all affected Filipinos in need of emergency subsidy, such as low-income families, households with recently returned overseas Filipino workers, no-work-no-pay individuals such as freelancers and self-employed individuals and such other families or individuals properly identified by the government as in need of emergency subsidy resulting from the enhanced community quarantine being implemented or previously implemented by the government.

All efforts

The government is exerting all efforts to raise revenues to fund a massive economic stimulus package, something the country urgently needs if it is to survive the expected recession caused by COVID-19 pandemic, senators said yesterday.

The lawmakers issued the statement as the Senate and House are anticipating a possible request from Malacañang to hold a special session to finally pass a bill to replace the Bayanihan to Heal as One Act and start the economic stimulus program.

Malacañang on Tuesday said there could be no pump-priming program – at least for the rest of the year – if there is no cash for a supplemental budget that is supposed to fund it.

The senators conceded that funding for such a program would be very difficult to come by due to the huge drop in revenue collections.

“We should start this year definitely,” said Sen. Sonny Angara, who chairs the committee on finance and sponsor of Senate Bill 1564 or the proposed Bayanihan to Recover as One Act.

Angara added that the Senate worked with economic managers to come up with SB 1564 “that could be funded and that would not be vetoed” when the chamber passed it on second reading before Congress adjourned last week.

Due to lack of time as well as certification from Duterte as urgent, the measure was not passed on third and final reading.

Sen. Panfilo Lacson admitted that the lack of funds is the biggest hurdle in the passage of a supplemental budget to finance pump-priming of the economy.

“We cannot squeeze blood from a turnip. No matter what amount Congress wants to push to stimulate the economy, without an accompanying revenue measure or a certification from the national treasurer that the money actually exists, a supplemental budget cannot be passed into law,” Lacson said.

He said the funds may be sourced from loans, both domestic and foreign, but even that takes time before the cash is actually available.

Without a supplemental budget, Senate Minority Leader Franklin Drilon said a stimulus package can be funded only through savings and realignments of existing programs and projects under the 2019 and 2020 General Appropriations Act.

Loan proceeds, according to Drilon, cannot be used for a supplemental budget to fund a stimulus fund as Article VI, Section 25 (4) of the Constitution is clear: “The supplement appropriation must be supported by funds actually available, as certified by the Treasury.”

“Under the Constitution, borrowings are not allowed to fund a supplemental budget; it has never been done, to my recollection. The only sources allowed are additional revenues (on top of programmed) and/or new sources of revenues,” Drilon said.

The underlying principle of such prohibition, he added, is fiscal responsibility as Congress may unduly increase the enacted budget for the year by passing special appropriation measures funded by borrowings.

Such a move can only widen the deficit and increase the debt burden, especially at this time when borrowings have to be resorted to to fund the current budget due to serious cash constraints, Drilon said.

Senate President Pro Tempore Ralph Recto said SB 1564 grants a standby authority to the executive branch to spend for better health infrastructure, protect jobs, provide relief to workers who lost their jobs and credit to businesses, including MSMEs. Edu Punay, Paolo Romero