THE House of Representatives on Tuesday approved at the committee level three coronavirus disease (COVID-19) response measures, including a P1.3 trillion economic stimulus package that will be in effect until 2023 to jump-start the economy.
Upon the motion of Lanao del Norte Rep. Khalid Dimaporo, the Defeat COVID-19 committee approved the report of its economic stimulus response package sub-committee co-chaired by Reps. Joey Sarte Salceda of Albay, Rep. Stella Quimbo of Marikina City and Sharon Garin of AAMBIS-OWA party-list.
Under the measure, a total of P568 billion will be earmarked for different programs for fiscal year 2020, while an additional P10 billion for mass testing and P25 billion for loans for micro, small and medium enterprises (MSMEs) will be set aside for 2021.
Another P650 billion budget for the enhanced implementation of the national government’s “Build, Build, Build” project is also proposed which shall be included in the budget for three years starting 2021 until 2023.
The still unnumbered substitute bill will be called the “Philippine Economic Stimulus Act” (PESA) and will be co-authored by at least 260 lawmakers.
Following the extended enhanced community quarantine (ECQ) in Luzon, economic managers said the total economic losses has reached P1.2 trillion.
The economic stimulus program is meant to ensure business operations and jobs retention in while the COVID-19 pandemic continues to affect the country.
An estimated 4.1 million employees from the Micro, Small, and Medium Enterprises (MSMEs) are expected to benefit under the economic stimulus package by rescuing their troubled companies.
Under the bill, MSMEs will receive P50 billion loans from Small Business Corp. and another P10 billion aid through the Department of Trade and Industry.
The Philippine Statistics Authority has said 99.52 percent or 998,342 of the 1,003,111 business enterprises operating across the country are MSMEs.
The package also has a P110 billion-worth of wage subsidies to be coursed through the Department of Labor and Employment and a P30 billion “cash-for-work” program for informal workers under the DOLE-Tulong Panghanapbuhay para sa Ating Disadvantaged/Displaced Workers (TUPAD).
Also part of the package are P130 billion for interest-free loans from the Land Bank of the Philippines and Development Bank of the Philippines, P10 billion for loan guarantees, and P25-billion capitalization for the National Development Corporation.
The tourism sector will be given a P58-billion assistance; transportation, P75 billion; industry and service sectors, P44 billion; and agri-fishery, P66 billion.
The DCC also approved House Bill No. 6622 or the proposed Financial Institutions Strategic Transfer (FIST) law that was earlier approved by the committee on banks and financial intermediaries chaired by Quirino Rep. Junie Cua Jr.
The bill seeks to grant banks and other financial institutions tax exemptions and reduced registration and transfer fees on certain transactions involving the offloading of non-performing assets (NPAs) to cushion the impact of the COVID-19 crisis.
NPAs are the banks’ and financial institutions’ non-performing loans (NPLs) and real and other properties acquired (ROPAs) in settlement of loans and receivables.
The measure encourages financial Institutions to sell NPAs to asset management companies, created as Financial Institutions Strategic Transfer Corporations (FISTC) which specializes in the resolution of distressed assets.
Lastly, the DCC adopted its peace and order cluster’s report on the anti-discrimination bill against confirmed and suspected COVID patients which is principally authored by Quezon City Rep. Jose Christopher Belmonte.
The bill seeks to penalize discrimination against person who are declared confirmed, suspect, probable, and recovered cases of COVID-19, healthcare workers and service providers.
It seeks to grant “full, inviolable protection against prejudice and discrimination to those who have already suffered and recovered from COVID-19, those who carry the brunt providing medical care, logistical and service support.”
It also seeks to recognize the dignity and heroism of the work of health workers, responders and service workers.
