Add’l aid for Pinoys to boost consumption: solon

MANILA – A member of the House of Representatives said Tuesday the national government should provide “ayuda” or additional cash aid to poor Filipino families to counteract the reductions in consumption and investments and help the economy recover from the coronavirus crisis.

Marikina City Rep. Stella Quimbo made the statement after the Philippine Statistics Authority (PSA) reported that the country’s gross domestic product (GDP) declined by 4.2 percent in the first quarter (Q1) of 2021. 

Quimbo said one of the main contributors to the GDP decline was household consumption, which contracted by 4.8 percent.

She said another economic stimulus, which is proposed under the Bayanihan to Arise As One bill (Bayanihan 3), is the much-needed lifeline to Filipinos, as she cited that hunger incidence increased from 8.8 percent in end-2019 to 16 percent in end-2020.

“Dahil patuloy pa rin ang mga Covid-19 (coronavirus disease 2019) restrictions, kulang ang kita, at kulang din ang gastos ng mga pamilya (Since Covid-19 restrictions are still being implemented, the income, as well as the consumption of families are not enough),” she said. “Kelangan ayudahan ng gobyerno ang mga pamilya (The government should provide cash aid to families).”

She expressed hope that Congress would waste no time in passing Bayanihan 3 once sessions resume next week.

“Ang pera para sa ayuda sa Bayanihan 3, kasama ang dalawang round ng PHP1,000 para sa lahat ng Pilipino, ay susi sa pagbangon ng pamilya at ng ekonomiya (The funds for the cash aid in Bayanihan 3, which includes two rounds of PHP1,000 each for all Filipinos, would be the key to the recovery of families and the economy),” she said.

Under the bill, all Filipinos will receive financial aid as a form of universal basic income that will be given in two tranches of PHP1,000 each. The bill will provide direct funding of PHP108 billion for the first tranche of the cash subsidy program and another PHP108 billion in standby funds.

Quimbo said cash assistance is also needed so families affected by Covid-19 could properly isolate themselves without worrying about covering their basic needs.

She further noted that subsidies could be given to help small businesses cover wages so that workers get their due pay and jobs are preserved, while those who have already lost jobs can receive assistance through emergency employment programs.

Stabilize pork prices 

Quimbo said aside from income losses, high prices for basic commodities “make it much harder” for families to cope during this recession.

She said Congress should also pass House Bill 9256 or the Affordable Pork Bill, which aims to stabilize pork prices in the short term through direct government procurement, as well as allocate assistance for the local hog industry’s recovery and development.

“While tariffs have been lowered to address prices, the rise in imports will only further hamper our local hog raisers, who have already been struggling due to ASF (African swine fever). We cannot let imports kill our local industry,” Quimbo said.

She said the funds must be funneled towards sustainable solutions for hog raisers, including ASF prevention and swine repopulation, credit, insurance, and research and development.

Boost infrastructure development, new investments 

Quimbo cited the need for the government to double its efforts to complete its infrastructure projects to boost growth in the sector, noting that the 27.2 percent drop in construction was the top contributor to the decline in Q1.

“Congress should also fast-track the opening up of our economy to new investments. Gross capital formation contracted by 18.3 percent in Q1,” she said.

Passing the changes in the Constitution’s economic provisions, Quimbo said, would allow for the inflow of more foreign capital and encourage investments across sectors, thus facilitating greater firm productivity and the transfer of skills and technology.

“Government must step in to steer our economy towards recovery and avoid persistent decline and inflation. There are proposals ready and available in Congress to achieve this. If we act swiftly on responsive legislation, perhaps our economy can still avert further losses and stay on track for development,” she said.