Bayanihan II, administration-backed stimulus, now up for Duterte's signature
MANILA, Philippines — The administration-backed stimulus package, which contained outlays worth P165.5 billion, is now ready to be sent to President Rodrigo Duterte for his signature, ending months of negotiations that delayed a much-needed economic rescue plan for sectors battered by the pandemic.
The House of Representatives on Monday sealed the final approval to the Bayanihan to Recover as One bill after the measure was ratified by the lower chamber. The Senate made a similar move last week.
Once enacted, Bayanihan II will extend Duterte’s power to move funds within the existing P4.1-trillion outlay that was previously granted to him through Bayanihan to Heal as One, which was enacted in March but expired last June 22. The new legislation, meanwhile, will be valid until yearend.
With the measure now ratified by both chambers, the bill will be transmitted to Duterte, who can either sign the measure into law or veto it. Sans presidential action since its transmittal, the measure will lapse into law after 30 days.
On top of enabling Duterte to re-channel budget funds to coronavirus response, legislators also authorized P165.5 billion in additional funding to various coronavirus-related spending from more testing and vaccine procurement to cash subsidies to poor families, public school teachers and public utility vehicle drivers.
However, only P140 billion of those funds will be readily available with the balance of P25.5-billion serving as “standby funds” which will only be disbursed if additional funds can be raised through savings, unused appropriations and borrowings.
Of the P140 billion, a total of P39.5 billion will be used as capital infusion to government-run banks to fund low-interest loans for business, cooperatives, displaced Filipino migrant workers and tourism stakeholders.
Apart from providing cash for the government’s pandemic response, the measure also mandates a 60-day grace period for payment of loans that will fall due on or before December 31.
Lawmakers likewise inserted a waiver in Bayanihan II that will overrule the Universal Health Care Act’s requirement for vaccines and drugs to pass fourth phase trials before getting distributed to the public. This, in turn, is expected to speed up procurement of a coronavirus vaccine, certified by World Health Organization, once it becomes available.
Despite the financing boost from Bayanihan II, the funding measure is a far cry from what lawmakers originally wanted. In June, the House approved on final reading the P1.3-trillion Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, which was rejected by economic officials who insisted on passing a package that is “affordable” amid tepid tax collections.
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