Business concerned over possible budget reenactment amid House session suspension

The Philippine business sector on Wednesday expressed its concerns over the possibility of a delayed budget and its economic impact, following the suspension of session at the House of Representatives amid speakership row.

According to Management Association of the Philippines (MAP) president Francisco Lim, it is critical that Congress pass the 2021 budget on time, especially with the ongoing COVID-19 pandemic.

"We hope that the suspension will not delay the passage of the 2021 budget, which is even more critical now given the need to mitigate the impact of the current crisis," he said in a mobile message.

Earlier this week, the House of Representatives moved to approve the 2021 national spending plan on second reading, even with a number of department budgets still up for deliberation.

The lower chamber then suspended its session until mid-November, effectively blocking any assembly scheduled on October 14, the supposed turnover of speakership from Speaker Alan Peter Cayetano to  Marinduque Representative Lord Allan Velasco as speaker.

"Let’s keep our fingers crossed that this sad situation will not repeat itself, otherwise our country’s economic recovery from the pandemic will be delayed to the further prejudice of our people," Lim said on Thursday.

Sought for comment, Acting Socioeconomic Planning Secretary and National Economic and Development Authority (NEDA) chief Karl Kendrick Chua said, “A reenacted budget will not help in our recovery program.”

A reenacted budget means that the government cannot fund programs appropriated for next year as it will have to operate on the same general appropriations as 2020.

The proposed P4.506-trillion budget next year is designed to provide budgetary support for programs, activities, and projects that will address the COVID-19 pandemic.

In 2019, the Philippines operated on a reenacted budget after Congress failed to pass it on time, and the spending program signed into law only in April.

The economic cluster blamed the reenacted budget for the slower economic growth recorded during the first and second quarters of the year.

Growth decelerated to a four-year low of 5.6% in the first quarter of 2019, and slowed further to 5.5% in the second quarter.—AOL/NB, GMA News