NEDA suggests to defer institutionalization of Balik Probinsya program

The National Economic Development Authority (NEDA) on Tuesday suggested to defer the institutionalization of the "Balik Probinsya, Bagong Pag-asa" (BP2) program into law until it is properly implemented and its initial impact is evaluated.

During its meeting, the New Normal cluster of the House Defeat COVID-19 panel deliberated on the three proposals to institutionalize the BP2 program.

It also tackled the several bills prescribing incentives for companies establishing new enterprises, expanding or relocating their business operations under the program, and establishing the Balik Probinsya Financial Assistance Fund Program.

NEDA director Remedios Endencia said that while the BP2 program is beneficial to stimulate growth in the countryside and to achieve balanced regional development, it is a relatively new program that still needs to be evaluated carefully.

"Considering that it was just recently implemented, we suggested deferring enactment of the program into law until we are able to develop the program further and evaluate its initial impact," she said.

When it comes to the Balik Probinsya Financial Assistance Fund, Endencia said a more comprehensive bill should be put in place that strengthens health systems and response to the pandemic.

Meanwhile, Endencia pointed out that there are already existing incentives for investments in rural areas, as the BP2 program seeks to achieve, such as income tax holidays and special tax rates.

The proposed Corporate Recovery and Tax Incentives for Enterprises Act also already aims to provide tax incentives to firms to push them to relocate outside Metro Manila, she added.

"We would also like to emphasize that providing tax incentives must be performance-based, targeted, time-bound, and transparent," Endencia said.

"Moreover, non-tax incentives such as ease of doing business, access to credit, and access to utilities should also be strengthened as these would make provinces more attractive to investments," she added.

Despite the position of the NEDA on the bills, Antique Representative Loren Legarda, who chairs the panel, said the deliberations and regional consultations on the institutionalization of the BP2 should continue.

"If NEDA says to defer it further, I think it will take forever and our cities will be more overpopulated as they are already now. And sickness and breakdown of law and order even, and challenges to health will further ensue," she said.

"Even if that's NEDA's position, I will not defer the consultations. I believe in the program, I believe that we must prepare the provinces to receive families but we must also consult agencies and see how much allocation we need to prepare communities," she added.

A series of consultations to be held in the 17 regions of the country will be held to further develop the proposal to institutionalize the BP2 program.

The panel also created a technical working group to consolidate the measures.

President Rodrigo Duterte back in May signed Executive Order 114 to implement the BP2 program with the goal to decongest Metro Manila and promote countryside development. —KG, GMA News