ECONOMIC managers admitted on Tuesday that government funds to respond to the pandemic are “not inexhaustible.”
Despite this, Finance Secretary Carlos G. Dominguez III was quick to reassure the public that the country is in a “good position to meet the financial challenge posed by Covid-19.”
“The President’s fiscal policies since the start of his administration, of vastly improving our revenue flows as well as being very judicious with expenditures and investments, have placed us in a good position to meet the financial challenge posed by Covid-19. We must realize however that we do not know how long this contagion will last and that our funds are not inexhaustible. We must therefore prudently marshal our resources and prepare for all eventualities,” said Dominguez in a Viber message to reporters.
Moreover, Dominguez, who also chairs the Economic Development Cluster, said the Bayanihan Law grants the President the power to use the funds of government-owned and -controlled corporations as well as to realign the 2020 budget during the contagion to meet the new priorities due to the Covid-19 pandemic.
“We will reallocate funds for: 1) assistance to local governments, 2) assistance to MSMEs by subsidizing the salaries of their employees who are mostly what some would call lower middle class, 3) support the DA/DTI in enhancing food production and availability,” he said.
For his part, Budget Secretary Wendel E. Avisado told the BusinessMirror that he shares President Duterte’s opinion that the P275-billion fund under Republic Act 11469 or the Bayanihan to Heal Law may be insufficient to address the long-term effects of the disease.
Of this budget, P200 billion will be used by the Department of Social Welfare and Development (DSWD) to provide cash aid for two months to the 18 million “poorest of the poor” households.
Avisado said local government units (LGUs) have appealed for more funds.
“Yes, [I agree] because of the clamor from the LGUs that there are more to be given and included than the list/data of DSWD and to include even the middle class,” he said in a text message.
The budget chief said they would know how much more money should the government release following the required validation of the list of beneficiaries.
“We’re doing this one at a time. We finish the 18 million first then work on the difference after the required validation is done. That would give us the true picture too of how much more money to raise,” he added.
Aside from the social amelioration program, Avisado also conceded that other government programs, projects and activities need additional funds to respond to the crisis.
Relatedly, state health insurer Philippine Health Insurance Corp. (PhilHealth) approved the release of almost P6 billion out of the P30-billion assistance package to accredited health-care institutions to help them respond to the pandemic.
“We have approved a fund release—about almost P6 billion—but the banks are operating for two hours in a day as well as our office personnel, half are operating as skeletal force so the fund transfer is not that fast. P30 billion is a huge amount but we are trying our best. We are talking to the banks to hasten the fund release,” PhilHealth President and CEO Ricardo C. Morales said in a mix of English and Filipino in a virtual Laging Handa public briefing.
Moreover, PhilHealth said it can sustain funding for the coverage of Covid-19 cases even though the Luzon-wide lockdown was extended until April 30.
According to Duterte’s second weekly report to Congress released on Monday night, PhilHealth approved the benefit packages to cover the cost of treatment for all patients with Covid-1 from February 1 until April 14.
Beyond April 14, PhilHealth will continue to provide financial coverage to Covid-19 cases through a recomputed case rate benefit package. “That is why we are enforcing a case rate so that we would have sustainability of our anti-Covid-19 campaign [and yet] still fund it,” he said.
Still, Morales said they must exercise prudence because the funds, while sufficient for now, are limited.
PhilHealth also announced on Tuesday that it is extending until April 30 the payment of contribution of self-paying direct individuals, professional practitioners and members of Group Enrollment Scheme for the the first quarter of the year.
Image credits: AP/Wong Maye-E