Connect with us

Hi, what are you looking for?

Economy

Less than two-thirds of Bayanihan II funds released so far — DBM

Republic Act No. 11494 or the Bayanihan to Recover as One Act allocated around P9 billion to assist the transportation industry, which was affected by the pandemic. — PHILIPPINE STAR/EDD GUMBAN

THE BUDGET department has released less than two-thirds of the P140-billion stimulus package under Republic Act No. 11494 or the Bayanihan to Recover as One Act (Bayanihan II), a month before the law expires.

At the same time, an economist warned further delays in the release of stimulus funds would hamper economic recovery this quarter.

Data from the Department of Budget and Management (DBM) showed it released P87.907 billion or 62.8% of the P140-billion budget under Bayanihan II. The funds were released between Oct. 1 and Nov. 17.

President Rodrigo R. Duterte signed Bayanihan II into law on Sept. 11.

Bayanihan II, which expires on Dec. 19, allocates P140 billion for relief programs for sectors hit hard by the pandemic and another P25 billion in standby funds.

The latest tally inched up by 0.02% from P87.892 billion released at the end of Nov. 10, after P15 million was released for the establishment of a computational research laboratory in the University of the Philippines (UP).

So far, the government spent P481.634 billion for its pandemic response.

Colegio de San Juan de Letran Graduate School Dean Emmanuel J. Lopez said the slow pace of the release of stimulus funds will hurt the economy’s recovery.

“It will not only directly affect the people and citizens who will be severely affected by both the pandemic and other disasters but likewise the much needed injection of funds needed that should generate employment and bring back the economy into normal activity,” Mr. Lopez said in an e-mail Thursday.

“The delay in release, if not immediately addressed, will negatively affect local economic performance that will hinder the growth in our GDP which as of the last quarter is still experiencing a double-digit contraction,” he said.

The release of Bayanihan II funds was delayed when the DBM had to seek the President’s approval. Mr. Duterte then gave the DBM the authority to release the funds without prior approval from his office to speed up the process.

“The release of funds under the Bayanihan II will depend on the submission of the departments/agencies of their Special Budget Request with supporting documents. The DBM will make sure to act within 24 hours upon receipt of the request of departments/agencies,” Budget Assistant Secretary Rolando U. Toledo said in a Viber message on Thursday.

Government spending, which contributes around 20% of the total economic output, failed to give the needed boost to the gross domestic product (GDP) in the third quarter. Growth in state expenditures eased to 5.8% from 8.8% in the second quarter.

The economy remained in a recession in the third quarter after contracting by 11.5% to follow the record 16.9% slump in the previous three months.

Meanwhile, the government’s economic recovery package should focus on helping people, instead of banks, especially after the country has been hit by several typhoons, former National Socioeconomic Planning Secretary Cielito F. Habito said in an online forum on Thursday.

“The way to have much impact is to put it on the demand side. Put it in the people’s hands or pockets and not in the banks, where we expect the banks to lend it to small businesses who are not even in the mood to borrow perhaps, because their customers aren’t even back,” Mr. Habito said, of the current administration’s stimulus package.

Mr. Habito said there should be more cash transfers to low-income families, particularly those affected by the recent typhoons.

He said the stimulus funds should be used to invest in effective testing, tracing and treatment for COVID-19-cases, as well as purchasing domestic goods so money can circulate within the economy. — with Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

A cabinet split is hampering the government’s efforts to deal with the nationwide shortage of lorry drivers that threatens fuel supplies at some petrol...

Investing

Pubgoers are flocking back to their locals, according to figures that drew a cautious toast from the industry but also prompted warnings of fresh...

Investing

Ministers are backing a multibillion-pound plan to build another large-scale nuclear power plant in Britain to ease pressure on electricity supplies as the country...

Economy

The Philippines’ balance of payment position (BoP) hit $1.044 billion in August, the highest in four months, due to increased special drawing rights (SDR)...

Economy

Consumers were less pessimistic in the third quarter as more jobs opened up, but business sentiment turned sour amid a fresh surge in coronavirus...

Economy

The Philippine central bank fully awarded the short-term securities it sold at an auction on Friday, even as rates rose on growing inflation fears....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!