Economic managers seek passage into law of Maharlika fund bill before SONA — Diokno

The Marcos administration’s economic managers are eyeing the enactment into law of the Maharlika Investment Fund (MIF) bill before President Ferdinand Marcos Jr.’s State of the Nation Address (SONA) late in July, chief economic manager and Finance Secretary Benjamin Diokno said Tuesday.

In a statement, Diokno said the economic team is seeking for the approval of Senate Bill No. 2020 establishing the MIF on third reading before session adjourns on June 2, 2023.

“The Maharlika Investment Fund bill is making significant progress in the Senate, and we hope to see it signed into law before the President’s second State of the Nation Address on July 24,” the Finance chief said.

The Senate Bill No. 2020 reached the Senate floor on March 20.

On Monday, May 15, Diokno along with his fellow economic managers Budget Secretary Amenah Pangandaman and National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan attended the Senate plenary session to show their full support during the period of interpellation and debate on the MIF measure.

Senator Mark Villar, sponsor of the bill, explained that the MIF will be able to generate bigger returns for the government, setting it apart from other Government-Owned or -Controlled Corporations (GOCCs).

Under SB 2020, the initial capitalization will come from the investible funds of the Land Bank of the Philippines and the Development Bank of the Philippines; dividend remittances of Bangko Sentral ng Pilipinas; national government share of income from Philippine Amusement and Gaming Corporation; and proceeds from privatization and transfer of assets.

In defending the bill, Villar said returns from the MIF will maximize the government’s assets and generate robust returns that will be used to invest in flagship projects.

“Ako po, galing po ako sa infrastructure dahil ako po yung dating secretary of DPWH [Department of Public Works and Highways], at nakita ko rin po na maraming infrastructure projects na nangangailangan ng karagdagang pondo at minsan hindi rin kaya ng GAA or General Appropriations Act ng gobyerno. Kaya kailangan natin magkaroon ng ibang fund sources,” he said.

(I came from the infrastructure sector when I was the secretary of the DPWH. I saw that there were a lot of infrastructure projects that needed additional funding when the GAA or General Appropriations Act cannot finance these projects anymore. This is why we need to have other fund sources.)

“Isa po itong additional source of funding na wala po tayo ngayon (This is an additional source of funding that we do not have now),” he added.

The government’s funding sources for big-ticket projects usually come from foreign loans and internal funds through the national budget.

The House of Representatives approved its version of the MIF on third and final reading in December last year.—AOL, GMA Integrated News