PRESIDENT Duterte failed to mention specific steps that the government is taking to revive the ailing economy, economists said.
After the President delivered his last State of the Nation Address (Sona), economists told BusinessMirror that this was lacking in the President’s nearly three-hour long speech on Monday.
Foundation for Economic Freedom President Calixto Chikiamco said the President mostly focused on discussing peace and order issues.
“Since it’s his graduation speech, he could have given a more uplifting speech in the midst of the agony caused by the pandemic. He could have stated what actions he’s taking so that the economy can bounce back better after the pandemic,” Chikiamco told BusinessMirror.
While Chikiamco said the President endorsed some economic reform bills, he said it would have been better if Duterte also pointed out how these measures will benefit the economy.
“He did mention the economic reform bills of the Public Service Act, the Investment Incentives Act, and the Retail Trade Liberalization, but he didn’t mention how these reform bills can revive the economy, generate employment and make the country competitive,” he added.
Asian Institute of Management (AIM) economist John Paolo Rivera also said that the President should have laid out his plans on how to help the economy recover from the pandemic.
“Aside from being long, he was able to recount the accomplishments of his administration in 5 years, provide an explanation to some of the decisions and approaches he took, recognized assistance from private sector,” he said.
“It could have been value adding if he also spent time discussing pandemic response—how can we move forward to reboot the economy and ensure public health and safety. I think most Filipinos were expecting this. His last sentence calling Filipinos to unite was an acceptable ending,” he added.
For IBON Foundation Executive Director Sonny Africa, the President’s last Sona showed Duterte’s “disinterest about the severe economic scarring and protracted recovery.”
Africa said, “It was perplexing. Despite the pandemic and real threat of another upsurge and renewed lockdowns, the country is lost about what the government plans to do with Delta looming.”
He added, “With so many suffering from the economy strangled by lockdowns, he just mechanically and unenthusiastically parrots imagined economic strength.”
Bayanihan 3
Bayanihan 3 was also not among the economic bills that the President endorsed in his last Sona.
Rivera said the discussion of Bayanihan 3 “could have been a springboard to charting the trajectory of economic recovery from the pandemic” given that these include assistance programs for both households and industries.
“I believe many are expecting to hear about Bayanihan 3 because that is one approach to boost government spending, other than infrastructure spending, that will help the country’s economic growth figures improve,” he said.
However, he said the President should have shared what it plans to do with unspent funds under Bayanihan 2. Based on the last report of DBM as of June 25, unspent funds under Bayanihan 2 amounted to P6.48 billion.
“Will the unspent funds be realigned for Bayanihan 3 so that funding would be less of a burden? I think those severely affected by the pandemic would be keen on hearing about this,” he said.
The validity of appropriations under Bayanihan 2 expired on June 30.
After the expiration of the validity of appropriations under Bayanihan 2, unobligated funds shall be reverted to the Bureau of the Treasury.
Meanwhile, Africa said the non-mention of Bayanihan 3 shows the President’s “disinterest [in] economic issues and blindly reflects what his economic managers think.”
“He’s so unconcerned about economic issues that he just parroted the pet legislation of the economic managers when urging Congress what to pass…,” he said.
Chikiamco said it was expected that the President would not mention Bayanihan 3 in his Sona, given the “fiscally conservative” stance of the Duterte administration.”
However, he believes the President may be forced to push for Bayanihan 3 if there’s another prolonged lockdown caused by the Delta variant.
“If the Delta variant causes another prolonged and massive lockdown, he may sing a different tune, especially with elections coming,” he said.
“Politically, it won’t look good if the government orders a lockdown but doesn’t give out ayuda,” he added.
Still, Chikiamco believes it is more important for Metro Manila, the surrounding regions, Metro Cebu, Metro Davao, and Metro Iloilo to reach herd immunity because these are where GDP is generated.
“The faster they reach herd immunity or close to it, there will be no need for prolonged lockdowns and Bayanihan 3,” he said.