How much has gov't raised so far for P1.17-T COVID-19 response program

The Duterte administration has unveiled a P1.17-trillion fundraising program to boost the state coffers’ capacity to contain the spread of the coronavirus disease 2019 (COVID-19) and address its underlying impact on the economy.

Finance Secretary Carlos Dominguez III said that the P1.17-trillion or $23 billion total from “both fiscal and monetary actions” was equivalent to 5% to 6% of the Philippines’ gross domestic product (GDP).

In total, the government has so far raised P568.463 billion for COVID-19 relief and response efforts.

Finance Assistant Secretary Tony Lambino told GMA News Online that the earlier unveiled P275-billion package under the Bayanihan to Heal as One Act —P200 billion for emergency subsidy program for some 18 million low-income households and P75 billion for health care services —forms part of the P1.17-trillion total effort.

The Department of Budget and Management (DBM) has already released P100 billion to the Department of Social Welfare and Development (DSWD), the agency tasked to hand out cash subsidies to poor Filipino families.

The P275-billion package, Budget Secretary Wendel Avisado said, in a text message, will be sourced from “both off-budget and on-budget sources.”

Based on President Rodrigo Duterte’s second report to Congress on April 6, 2020, the DBM has so far identified a total of P189.823 billion unreleased appropriations from both 2020 General Appropriations Act and continuing appropriations under last year’s budget which may be discontinued to fund COVID-19-related interventions.

The breakdown of the P189.823-billion identified funding source by the DBM are as follows:

• Personal Services: P44.934 million (2020 GAA) and P922.654 million (2019 continuing appropriations)
• Maintenance and Other Operating Expenses: P27.901 billion (2020 GAA) and P537.687 million (2019 continuing appropriations)
• Finance Expenses: P505 million (2019 continuing appropriations)
• Capital Outlays: P158.554 billion (2020 GAA) and P1.862 billion (2019 continuing appropriations)

Avisado also said that funding the P275-billion will also be sourced from dividend contributions from government-owned and controlled companies and corporations (GOCCs).

As of April 1, the Department of Finance (DOF) has collected P78.64 billion to fund the government’s response to the COVID-19 crisis.

Apart from the funds identified by the DBM and those collected from GOCCs, the Bureau of Treasury (BTr) captured P300 billion from a repurchase agreement with the Bangko Sentral ng Pilipinas (BSP).

The Asian Development Bank (ADB) also extended a $3-million or around P153 million grant to aid the Philippine government’s efforts to combat the disease.

Yet to be added to the government’s war chest is the planned $5.7 billion or roughly P290.7 billion in loans from the Asian Development Bank (ADB) and the World Bank.

“We are negotiating to have around $5.7 billion on standby financing,” Lambino said.

If the amount is still not enough, Dominguez said the DOF “will go the commercial markets.”

With debt financing getting a boost, the Finance chief said last night that the amount of the country’s debt in relation to the size of the economy will slightly increase to 47% from the current debt-to-GDP ratio of 41%.

The ratio, the Cabinet official said, is "still very low compared to our neighbors."

Dominguez also said the budget deficit is seen to widen to 5.3% of GDP because “we will be spending more than we will be collecting...  to save the people and make sure they have food on the table.” —LDF, GMA News