Camarines Sur Rep. LRay Villafuerte has welcomed Malacañang’s release of P22.9 billion in financial assistance to low-income families in the so-called “NCR Plus” bubble, but pressed nonetheless for the congressional approval of the so-called Ayuda bill to further boost household spending across the country amid a fresh coronavirus surge that has further hurt business confidence and dampened economic activity.
Villafuerte said the financial aid approved by President Duterte is a welcome relief for more than 22 million individuals hit hard by the weeklong enhanced community quarantine (ECQ) in Metro Manila and four neighboring provinces, but said “the Congress should nevertheless give priority to the passage of the proposed Bangon Pamilyang Pilipino (BPP) program when the Legislature resumes session after its almost two-month Lenten recess.”
“The BPP will mean a bigger and broader package to tide over poor and low-income families hit the hardest by the pandemic-driven recession as it provides for a much bigger P10,000 subsidy per household for more beneficiaries not only in the NCR Plus bubble but in all other parts of the country,” Villafuerte said.
“Such a stimulus package is needed to rejuvenate business confidence and consumer spending while the government sews up more vaccine deals with Big Pharma to purchase enough doses to hit its target of inoculating 100% of the country’s adult population of 70 million,” he said.
Villafuerte pointed out that in its latest Regional Economic Outlook, the ASEAN+3 Research Office (AMRO) has tagged the Philippines as among the region’s economies most affected by the pandemic because of low household consumption resulting from the strict lockdowns and the government’s “modest” spending, which accounted for just 23.5% of gross domestic product (GDP), as compared to its regional peers that rolled out fiscal stimulus packages of as high as 53.9% of economic output.
“Such a stimulus package is needed to rejuvenate business confidence and consumer spending while the government sews up more vaccine deals with Big Pharma to purchase enough doses to hit its target of inoculating 100% of the country’s adult population of 70 million.”
He said AMRO concluded in its report that “stronger fiscal support should be used to shore up the economy if the recovery were to falter or weaken.”
Villafuerte is a member of the independent majority bloc BTS sa Kongreso headed by former Speaker Alan Peter Cayetano that proposed last February a fiscal support or cash subsidy of P10,000 per family under House Bill (HB) No. 8579 or the BPP Assistance Program—better known as the ‘Ayuda’ bill.
Budget Secretary Wendel Avisado said the Department of Budget and Management (DBM) has already released the Special Allotment Release Order (SARO) and Notices of Cash Allocation (NCAs) for the P22.9-billion fund that PRRD had approved to support low-income households in Metro Manila, Bulacan, Cavite, Laguna and Rizal that were placed under the stricter ECQ this Holy Week.
The DBM said 22.915 million people are entitled to receive P1,000 per person but not to exceed P4,000 per family either in cash or in kind, based on the most efficient and effective mechanism to be determined by their respective local government units (LGUs).
On top of this financial aid in ECQ areas, Villafuerte said “a third cash subsidy or ayuda—following the two previous ones given to poor and low-income families last year under the SAP (Social Amelioration Program) of Bayanihan 1 (Bayanihan to Heal as One Act)—will further boost household income amid the triple whammy of high unemployment, high hunger rate and high food prices resulting from the lingering coronavirus pandemic.”
For Villafuerte, “The House leaderships needs to put the proposed BPP on the front burner when the Congress reopens after its almost two-month Lenten recess, following the latest data released by our economic managers pointing to higher unemployment and underemployment.”
The Philippine Statistics Authority (PSA)’s February 2021 Labor Force Survey (LFS) bared that there were 4.187 million unemployed Filipinos in February or more than the 3.953 million recorded in the January round, and 4.2 million underemployed, or higher than the 4 million the month before.
Both the Senate and the House of Representatives adjourned last March 25 for the Congress’ traditional Lenten break, and will resume session on May 17.
The government has placed the “NCR Plus bubble” under ECQ as the Octa Research Group projected the number of coronavirus infections to soar to 12,000 to 13,000 daily this April. The number of new Covid-19 cases soared to an all-time high of 15,310 last April 2.
Villafuerte said that while the P1,000-per-person aid in ECQ areas will be sourced—according to Avisado—from remaining funds under the Bayanihan to Recover as One Act (Bayanihan 2), the funding for the proposed BPP can likely be taken from the unutilized appropriations and unobligated funds in the 2020 and 2021 national budgets.
“The BPP will mean a bigger and broader package to tide over poor and low-income families hit the hardest by the pandemic-driven recession as it provides for a much bigger P10,000 subsidy per household for more beneficiaries not only in the NCR Plus bubble but in all other parts of the country.”
He said the government reported in February around P452 billion in unutilized funds from the 2020 national budget and P204 million in its unobligated cash balance.
Villafuerte said “the proposed BPP could be sourced from these unutilized and unobligated funds, which are under the 2020 and 2021 GAAs (General Appropriations Acts).“
Villafuerte co-authored both the Bayanihan to Heal as One Act (Bayanihan 1) and Bayanihan 2 as well as the laws extending the validity of the 2020 GAA to December 31, 2021 and of Bayanihan 2 to June 30, 2021.
He said HB 8597 aims to treat the cash assistance to be given to qualified families as “capital” that would help stimulate consumption and revitalize the economy.
“Imagine if we inject P200 billion into the economy now. That would pump-prime it,” said Villafuerte. “That money will circulate and will be used to buy necessities and will be used for livelihoods and businesses as the Covid-19 vaccines start arriving for our mass immunization program.”
Under the proposed BPP, the priority beneficiaries for the P10,000 cash grant are the poorest of the poor, senior citizens, persons with disabilities (PWDs), solo parents, displaced workers, medical frontliners, families of overseas Filipino workers (OFWs), individuals who were not able to secure aid through the SAP under Bayanihan 1, Philippine National ID holders, and members of vulnerable groups.
Villafuerte said the high unemployment rate and the rising prices of food and other basic commodities as reflected in the elevated inflation levels underscore the need for the Congress to swiftly approve the BPP bill when it resumes session in May.
Vaccine czar Secretary Carlito Galvez Jr. has said 2,525,600 vaccine doses already arrived in the country as of March 29, and that another 140.5 million doses are due for arrival between April and December 2021.