By Butch Fernandez & Samuel P. Medenilla
ACKNOWLEDGING the need to tap additional funding sources to bankroll a P1.2-trillion economic “stimulus package,” Sen. Sherwin Gatchalian is open to the Duterte administration’s option to auction State assets to raise revenues, but insists they should not be sold at a loss so as not to disadvantage an already bleeding government.
“I am open to the idea of the asset sale,” Gatchalian said, even as he reminded everyone that “we must make sure the sale would not leave the government at the short end of the bargain.”
This, as the government is now scrounging for “uncommitted” funds from its agencies and “unreleased” budget from last year to finance its still growing needs in dealing with the Covid-19 health crisis, both for containing the pandemic and boosting an economy paralyzed by the lockdowns that it forced government to impose.
In a press briefing on Monday, Presidential Spokesperson Harry Roque said the Department of Budget and Management (DBM) issued a memorandum instructing government agencies to submit the list of all their “uncommitted” funds for 2020, which could be used for Covid response.
“We will know by April 30 what budget from the different line agencies…could be realigned [for Covid-19 response],” Roque said.
He noted once they get the list of “uncommitted funds,” they will be able to finalize the amount of the supplemental budget, which they will request from Congress.
DBM earlier said it only has about P45 billion left from its P397-billion Covid budget, which includes the P275 billion under the Bayanihan to Heal As One Act and the capital outlay fund of some government agencies.
Of the said budget, P205 billion has been allocated for the cash aid program of the Department of Social Welfare and Development (DSWD), while the rest were spent on similar programs from the Department of Labor and Employment (DOLE) and the Department of Agriculture, as well as the purchase of personal protective equipment (PPE) and test kits.
“So we can see, we have almost depleted our funds for Covid. So if we will need more [funding] help, we have to go to Congress because even if we have more funds, we cannot spend it without authorization coming from Congress,” Roque said.
Other fund sources
Roque said the bulk of the budget, which came from the Bayanihan to Heal As One Act, is supposed to be enough only up to May.
This prompted the government to start looking for additional funding for the Covid crisis, which could last indefinitely until a vaccine or medicine for the pandemic illness is finally developed.
To address its Covid-related fund woes, Sen. Panfilo Lacson suggested that government tap the P900 billion worth of unreleased government funds last year, as well as the P85 billion fund lodged in the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr), which he alleged are “pork barrel” insertions by some lawmakers.
Citing DBM data, Roque clarified there are only P77 billion in unreleased government funds from 2019. He said DBM is now considering using these for Covid measures.
As for the construction projects purportedly backed by lawmakers, he said they will leave it up to Public Works Secretary Mark Villar to decide.
“Most of the said projects are with DPWH so we will leave it to Secretary Villar to realign the funds for the [construction] projects which were identified by senators and congressmen,” Roque said.
Asset sale last resort
Asserting that he saw no urgent need to sell assets, Gatchalian recalled in a radio interview on Tuesday that the State-run Philippine Amusement and Gaming Corporation (Pagcor) “has been for many years [been] talked about as up for sale.”
“For example, I know that Pagcor has been discussed for many years as being eyed for privatization, but the economy was doing quite well, so it wasn’t privatized. So in these times when we need funds, we are open to the idea of selling what are called non-governance assets.”
“If an asset is not essential to governance, we can sell it. But let’s not sell at a loss just because of the crisis. I believe our economy is stable enough and will recover. We just have to make sure we’re not selling good assets at a loss,” the senator added.
Gatchalian noted that the government owns many real property assets as well as corporations that have nothing to do with governance and which can be put up for sale.
Earlier, Gatchalian estimated that the massive stimulus package required to reboot the economy paralyzed by the Covid-induced lockdown will be from at least P1 trillion to P1.2 trillion. The House of Representatives has a slightly higher estimate, at P1.3 trillion to P1.5 trillion.
Gatchalian said the senators this early have a consensus to frontload the stimulus package, given the urgent need to help industries recover, and prevent the total wipeout of millions of small businesses, which employ 90 percent of the work force.