Senate to extend GAA, Bayanihan for pandemic response

MANILA, Philippines — The Senate is expected to approve this week the extension of the Bayanihan to Recover as One Act, as well as unimplemented provisions of the 2020 General Appropriations Act (GAA) to enable the government to continue programs to fight the COVID pandemic and address its impact.

President Duterte last night certified both bills as urgent, presidential spokesman Harry Roque told reporters in a text message.

While Duterte is likely to sign the proposed P4.5-trillion national budget for 2021 before the end of the year, senators believe there are still unspent funds in Republic Act 11494 or Bayanihan 2, which expires this week, and in the 2020 GAA.

Extending the two spending laws this week will depend on whether or not Duterte certifies the move as urgent.

The annual GAA grants spending authority to the executive branch over a long list of programs and projects but such mandate expires at the end of the fiscal year, and unspent funds are reverted to the National Treasury.

Bayanihan 2, meanwhile, has a total of P140 billion in funding for various emergency programs to address the pandemic, including the purchase of vaccines.

However, only a little over half of the funding reportedly has reached beneficiaries while the P10 billion for vaccines remains untouched. Extending the law, which expires on Dec. 19, would allow the executive to add the P10 billion to the funding allocated for the purchase of vaccines in the 2021 national budget.

Senate President Pro Tempore Ralph Recto said he would back extending the two laws as such would help increase spending next year to improve the country’s ability to contain the virus and “keep our people healthy and to enhance our economic rebound and recovery soonest by saving and create jobs in the process.”

“It’s not about tolerating (poor spending). Unfortunately, we do have an absorptive problem. But that can be easily fixed. What’s important is to keep our people safe and healthy. Likewise, help save and create jobs for them to take care of themselves and their families,” Recto said.

Senate Minority Leader Franklin Drilon also voiced support for proposals to extend Bayanihan 2 and the 2020 GAA in light of reports by the Asian Development Bank (ADB) that the country’s COVID-19 war chest is relatively small compared to that of its neighboring Asia countries such as Malaysia and Thailand.

However, Drilon said “funding remains the biggest problem of the government.”

“To provide authorization is one thing but to fund it is another. Our current fiscal space makes us doubt whether the level of unspent amount under Bayanihan 2 and 2020 GAA is something the government can absorb on top of the programmed expenditures for next year,” he said.

The President is set to sign the proposed P4.5-trillion national budget for next year with a programmed deficit of 8.9 percent of gross domestic product, he said.

To address the government’s cash requirement, he said the government must do another “cash sweep” in order to raise funds to implement much-needed relief programs in the Bayanihan 2 and continue critical programs, projects and activities under the 2020 GAA.

Sen. Bong Go also expressed support for an extension as he called on concerned agencies to ensure their various programs are fully implemented. He also reminded them to immediately release financial aid to intended beneficiaries.

The senator appealed to the President to certify as urgent pending bills seeking to extend Bayanihan 2 and the 2020 national budget.

Data from the Department of Budget and Management (DBM) showed allotment releases under the Bayanihan to Recover as One Act have already breached P100 billion as of Dec. 11.

In a report posted on its website, the DBM said the government has released P105.78 billion to key agencies to support their respective COVID-19 recovery programs.

Bulk or P102.53 billion of the amount was charged against the P140-billion stimulus package provided under the law. This includes allotments charged from excess income, as certified by the Bureau of the Treasury (BTr) and from savings pooled pursuant to Bayanihan to Heal as One Act.

The remaining P3.24 billion came from regular funds under the 2020 General Appropriations Act.

Including funds released during and after the implementation of Bayanihan 1, the total amount released for the Philippines’ COVID-19 response since March has now reached P498.51 billion.

To date, the Department of Agriculture (DA) has received the highest allocation under Bayanihan 2, with P23.29 billion in allotments received so far. The agency secured additional funds for the implementation of various programs and projects under its Agriculture Stimulus Package, which includes farm-to-market roads worth P5 billion. – Mary Grace Padin