(Eagle News)–Speaker Lord Velasco is proposing another version of a Bayanihan law 3 that would allocate P420 billion in funds for the country’s economic recovery amid the COVID-19 pandemic.
According to Velasco, the proposed “Bayanihan to Arise As One Act” was filed on Thursday since the two previous Bayanihan laws were “not sufficient for the genuine economic recovery of the country.”
The proposed law was co-authored by Marikina City 2nd District Rep. Stella Luz Quimbo.
In arguing for the passage of the proposed legislation, Velasco noted that the Philippine economy had contracted by 9.5 percent in 2020, the worst performance since World War II.
Velasco said this was significantly worse than the predicted contraction of 4.5 to 6.6 percent, which was the basis for the crafting of the 2021 National Expenditure Program.
“Given that actual economic output in 2020 was far below what was assumed for budget purposes, and further losses may still be incurred as the COVID-19 pandemic is expected to prevail well into the current fiscal year, an additional economic stimulus package is needed to help the government meet its recovery targets for the year,” he said.
He said the proposed P420 billion is broken down as follows:
P52 billion for subsidies to small business for wages and other worker-related expenses
P100 billion for the capacity-building of businesses in critically impacted sectors
P108 billion for additional social amelioration to impacted households through programs of the Department of Social Welfare and Development
P70 billion for the provision of assistance and capacity-building to farmers, livestock producers and fishermen
P30 billion for the implementation of unemployment assistance and cash-for-work programs under the Department of Labor and Employment
P30 billion for internet allowances to primary, secondary and tertiary students and teachers in public and private educational institutions
P5 billion to the Department of Public Works and Highways for the rehabilitation of typhoon-affected areas, including the repair, reconstruction and/or construction of flood control works, roads, bridges, public buildings and other damaged public works, to be distributed proportionately among the provinces and cities affected
P25 billion to the Department of Health for the procurement of COVID-19 medication and vaccines, and to finance logistics, information awareness campaigns, and other related operational expenses
He said because of uncertainty, household consumption has gone down, contributing 5.7% to the total 9.5% annual reduction in output in 2020.
Government, he said, must “therefore take the lead to promote business and consumer confidence and social welfare.”
“Increased, well-targeted spending is a vital step to achieving these goals,” he said.
He said so far, 115 members of major political parties and blocs in the House have expressed their intent to co-author the house bill.
At least two other proposed versions of the Bayanihan 3 law are pending before the House.
