Salceda proposes ‘enhanced Build, Build, Build’ in COVID-19 economic stimulus strategies

House Ways and Means Committee chairperson Joey Salceda on Monday proposed that an "enhanced Build, Build, Build" program be included in the country's economic stimulus strategies to rise from the losses due to the coronavirus disease 2019 (COVID-19) crisis.

In a statement, Salceda said that infrastructure "remains one of the most powerful economic stimulus tools – especially if you can finish it on time.”

“We estimate that every P200 billion in infrastructure can create up to 463,000 jobs on the year it is spent. Conversely, since the government is now the sole driving force of demand, a P200 billion cut in infrastructure will [lose] 463,000 jobs," he said.

"As an output multiplier, it is significant. It will also stave off part of the job losses we may incur because of COVID-19. It will definitely have to be part of the policy mix,” he added.

According to Salceda, the economic multiplier of infrastructure is estimated to be as high as 3.66, while its Year 1 multiplier can be as high as 1.02, suggesting that every peso spent on infrastructure generates an additional peso in consumption and investment.

“As I said before, speed is your friend, delay is your enemy – in economics and in pandemic response. So we must prioritize mainly on the basis of speed,” he said.

Salceda said that some measure of prioritization needs to be made in the implementation of infrastructure projects. This could be high economic value, ability to be finished within the term of President Rodrigo Duterte, and high potential to create jobs.

He also pushed for the passage of his "Build, Build, Build" emergency powers proposal in order to fast-track the completion of high-value projects and frontload economic gains.

“To enable the spillover effects of fully operational infrastructure sooner, the House of Representatives must consider passing some iteration of House Bill 5456, which grants the President special powers to expedite Build, Build, Build. This representation is prepared to recalibrate the bill to better suit the needs of the infrastructure agencies,” Salceda said.

“We propose that the sectoral focus of Build, Build, Build be the following: Health investments, especially for Universal Health Care, Infrastructure supportive of creative industries, Infrastructure for Public Schools of the Future,” he added.

Deputy Speaker Luis Raymund Villafuerte has also been pushing to reboot the government's "Build, Build, Build" infrastructure program and declare construction activities as essential services even as the enhanced community quarantine is extended anew in some areas.

“‘Build, Build, Build’ will enable the country to achieve a V-shaped or quick recovery as infrastructure investments have the highest multiplier effects on the economy, including the generation of jobs,” he said.

“Creating a lot of jobs will go a long way in reversing the surge in unemployment brought about by the economic standstill," he added.

Duterte recently extended the enhanced community quarantine in some areas such as the National Capital Region, Region III and IV-A until May 15, while other areas will only be under general community quarantine starting May 1. —LDF, GMA News