Money for 'implementation-ready' projects to stay as gov't seeks funds for 'Bayanihan 3'

MANILA, Philippines (Update 1, 5:40 p.m.) — Funds for high-impact state projects would be left untouched in the search for cash to finance a new pandemic relief bill, which could cost the government P405.6-billion in additional spending.

Like the previous Bayanihan laws, the proposed Bayanihan to Arise as One Act (Bayanihan 3) identified the 2021 budget as among its sources of funding, mainly by realigning funds for some projects and moving them to coronavirus programs.

But to keep the outlay “intact” as much as possible, AAMBIS-OWA Rep. Sharon Garin, one of the authors of the bill, told the House committee on economic affairs on Monday that funding for “implementation-ready” projects will not be moved and, instead, will be released immediately “to fast track economic recovery.”

“The only amendment that we have done here is the amendment on sourcing of funding. This is still an issue. But we have made a change because I know the members have huge and very valid concerns on the sourcing,” Garin said.

“We have 2021 budget and we want to keep that intact especially those projects that are priorities as well as that have high multiplier effect,” she added.

A still unnumbered substitute bill for Bayanihan 3 is now up for plenary debates at the House of Representatives. With over 90% of the lower chamber authoring the measure, including House Speaker Lord Allan Velasco himself, Bayanihan 3 is expected to breeze through Congress.

Once enacted into law, the bill would provide funds for coronavirus programs, including the dual-tranche distribution of P2,000 cash aid to each Filipino, regardless of social status. The measure would also provide wage subsidies amounting to P20 billion for those who lost their jobs due to renewed lockdowns, as well as funds to buy laptops for teachers for their online classes.

But it remains to be seen if the current form of the measure is palatable to the Duterte administration, which has avoided a massive fiscal response to the health crisis over fears of tarnishing the government’s hard-won credit ratings. Already, Finance Secretary Carlos Dominguez III said any new stimulus bills must be “revenue neutral” to avoid ballooning the state’s budget deficit that is swelling at “concerning” rate.

"We’re still in talks (with the economic managers)," Garin said in a press conference. "They haven’t rejected our proposal yet but they are quite having a hard time arriving at a total amount," she added.

So far, economic officials are open to adding P170 billion on existing spending to finance a much-needed relief package for sectors hurt by renewed lockdowns in Metro Manila and four nearby urban areas. They said revenue sources could come from savings of agencies pooled together, or even larger dividends remitted by state companies to the national government.

Even proceeds from asset sales — which Dominguez rejected last year — would qualify, just not more debt. 

Updated to include more quotes from Rep. Sharon Garin.