Palace to study budget use for Bayanihan 3

MANILA, Philippines — The government has to assess the state agencies’ use of their budgets before deciding on whether to push for another extension of the Bayanihan law, Malacañang said yesterday.

Speaker Lord Allan Velasco and Marikina Rep. Stella Luz Quimbo have filed Bayanihan 3 or the “Bayanihan to Arise As One Act” to support the administration’s economic recovery efforts.

The measure aims to allocate P108 billion for cash assistance to COVID-19 affected households; P100 billion for capacity-building programs for businesses; P70 billion for the agriculture sector; P52 billion for small business subsidies; P30 billion for displaced workers; P30 billion for internet allowances to teachers and students; P25 billion for COVID-19 medicines and vaccines, and costs related to vaccination, and P5 billion for the rehabilitation of typhoon-ravaged areas.

It is intended to be an extension of Bayanihan 1 and Bayanihan 2 – laws that funded the government’s pandemic response efforts.

“We are thankful for the initiative of Congress for Bayanihan 3 but we have to check first if we really need it because we are already implementing the 2021 budget, which contains at least P1 trillion pesos worth of stimulus package,” presidential spokesman Harry Roque said at a press briefing. “Let’s look first at the utilization rate of individual departments before deciding on whether we need Bayanihan 3. But as I said, we really welcome the filing of this initiative.”

Roque noted that the country’s credit rating might be affected if the government incurs more debts. Citing data from the finance department, he said the ratio between the Philippines’ debt and its gross domestic product is about 55 percent.

Finance Secretary Carlos Dominguez, he added, wants the ratio to be maintained because it is the average around the world.

“If we borrow a huge amount of money, our credit rating may be downgraded and it would be more difficult to borrow money and the costs of borrowing would increase. So, we want to stay where we are so that if there are unexpected costs because of COVID-19, we won’t need to borrow that much,” Roque pointed out.

He reiterated that the government still has enough funds to bankroll its pandemic response. Last month, Duterte signed laws extending the availability of Bayanihan 2 funds and the P4.1-trillion 2020 national budget. The Bayanihan 2 funds can be spent until June 30 this year while the availability of last year’s budget has been extended until Dec. 31.

Senate President Pro Tempore Ralph Recto said the “supply squeeze and price hikes” of food should prompt the immediate passage of Bayanihan 3.

“If hunger is a great motivator, then it should push the government to package a third round of aid centered on helping families who are having a hard time putting food on the table, “ Recto said.

He batted for “food-focused” Bayanihan 3 with a “high nutritional content.”

Recto said among the programs worth considering are food-for-work employment in labor-intensive government projects such as public works, repair of farm infrastructure, preparation and distribution of school modules, and those in the health sector. – Mary Grace Padin, Cecille Suerte Felipe