Velasco proposes own P420-B Bayanihan 3 law

Speaker Lord Allan Velasco has filed another measure proposing for a third part of the Bayanihan Law, outlining P420 billion worth of interventions to further help stimulate the country's economic recovery amid the COVID-19 pandemic.

Velasco, along with economist and Marikina City Representative Stella Quimbo, filed House Bill 8628, or the proposed "Bayanihan to Arise As One Act" or Bayanihan 3.

A total of 115 members of major political parties and blocs in the House have so far expressed support and signified their intent to co-author House Bill 8628.

According to the Speaker, while the two previous Bayanihan Laws have increased the government's initial capacity to respond to the COVID-19 pandemic, these were “not sufficient for the genuine economic recovery of the country.”

He cited the recent Philippine Statistics Authority data showing that the country's economy contracted by 9.5% overall in 2020, the worst since World War II.

“Given that actual economic output in 2020 was far below what was assumed for budget purposes, and further losses may still be incurred as the COVID-19 pandemic is expected to prevail well into the current fiscal year, an additional economic stimulus package is needed to help the government meet its recovery targets for the year,” Velasco said.

The proposed P420-billion appropriation under Bayanihan 3 is broken down as follows:

• P52 billion for subsidies to small business for wages and other worker-related expenses;
• P100 billion for the capacity-building of businesses in critically impacted sectors;
• P108 billion for additional social amelioration to impacted households through programs of the Department of Social Welfare and Development;
• P70 billion for the provision of assistance and capacity-building to farmers, livestock producers and fishermen;
• P30 billion for the implementation of unemployment assistance and cash-for-work programs under the Department of Labor and Employment;
• P30 billion for internet allowances to primary, secondary and tertiary students and teachers in public and private educational institutions;
• P5 billion to the Department of Public Works and Highways for the rehabilitation of typhoon-affected areas, including the repair, reconstruction and/or construction of flood control works, roads, bridges, public buildings and other damaged public works, to be distributed proportionately among provinces and cities affected;
• P25 billion to the Department of Health for the procurement of COVID-19 medication and vaccines, and to finance logistics, information awareness campaigns, and other related operational expenses.

Velasco believes that “uncertainty is the primary effect this pandemic has on every aspect of our lives.”

Because of uncertainty, household consumption has gone down, he added, contributing 5.7% to the total 9.5% annual reduction in output in 2020.

“Government must therefore take the lead to promote business and consumer confidence and social welfare. Increased, well-targeted spending is a vital step to achieving these goals,” Velasco said.

Quimbo earlier filed her own Bayanihan 3 bill, which shares the name proposed by Velasco, outlining interventions amounting to P400 billion.

Another Bayanihan 3 proposal was jointly filed by House Majority Leader Martin Romualdez and two other lawmakers, outlining P247 billion worth of emergency response and economic recovery programs to help the country jumpstart the economy and provide aid to the victims of recent typhoons. —KG, GMA News