To keep the economy on track and to mitigate the impact of Covid-19, an economist-lawmaker on Thursday filed a bill reallocating P108 billion to fund a fiscal stimulus package.
In House Bill 6606 or Economic Rescue Plan for Covid-19, Rep. Stella Luz Quimbo of Marikina, a member of the House Committee on Economic Affairs, said the stimulus package will be the main economic measure to address the current public health emergency.
Quimbo said the monies shall be appropriated out of any funds in the National Treasury, as additional funding and budgetary requirements for the fiscal year 2020.
“A P108-billion stimulus to the economy will compensate for the expected losses from Covid-19. This package may be funded through the GAA contingency fund and unspent funds from the previous year,” Quimbo said.
“A stimulus package of P108 billion will compensate for this expected loss, considering multiplier effects, and help keep our economy on track throughout the year,” she said.
The bill provides for the government to allocate P108 billion for a fiscal stimulus package, broken down as follows: P43 billion for assistance and promotion of the tourism sector, P15 billion for unemployment assistance, and P50 billion for assistance for business, particularly MSMEs, which includes loan packages and subsidies.
The bill also creates the Inter Agency Task Force for the 2020 Fiscal Stimulus Package to manage the use of the fund. The task force will be composed of the National Economic and Development Authority, Department of Tourism, Department of Labor and Employment, Department of Trade and Industry, Department of Finance, and Department of Budget and Management.
“As we take precautions to contain this disease, our economy is expected to take a hit due to lower economic activity. In particular, the Department of Tourism estimates that the tourism sector will lose P42.9 billion in revenue from February to April,” said Quimbo.
Earlier, the Department of Finance warned that the revenue of the national government may decline by P91 billion in 2020 if the Covid-19-induced disruption lasts until June of the same year. For its part, Neda has stated that should the outbreak persist for the entire year, it may reduce the economic output of the Philippines by 0.3 to 1.0 percentage point for 2020.
“The estimated effects of the crisis on labor include rendering more than 30,000 to 60,000 workers unemployed in the tourism sector. The Department of Labor and Employment reported that more than 300 workers have lost their jobs since February 2020 and that 47 companies with more than 4,000 workers have implemented flexible work arrangements, such as short hours and reduced working days,” she said.
With this, Quimbo said there is a need to help businesses that have experienced or are expected to experience substantial losses as a result of Covid-19, and provide sufficient safety nets and immediate assistance to workers who have lost their livelihood from the aforementioned losses.
According to Quimbo, certain industries are expected to suffer most gravely from the outbreak, such as the travel and tourism sector.
She said the DOT foresees that the tourism industry may lose P42.9 billion in revenue, taking note of the fact that China has the second-biggest share of tourist arrivals to the Philippines.
If the Covid-19 lasts until June, the Neda projects a 1.42 million reduction in tourist arrivals.
“The economic impact of the disease may only be nursed if we maximize Congress’ power of the purse,” she said.
Earlier, Speaker Alan Peter Cayetano said the chamber is ready to hold a special session during its seven-week break to measures needed to address Covid-19.