With the Philippines’ stimulus spending to combat the new coronavirus disease 2019 (COVID-19) pandemic among the lowest in Asean, business and civic groups are pushing for the passage of a bill that allots P1.2 trillion to boost the country’s recovery efforts.
In a joint statement, business and civic groups said the Accelerated Recovery and Investments Stimulus for the Economy (ARISE) bill, formerly the Philippine Economic Stimulus Act bill is a more substantial stimulus plan that will protect jobs and help job-creating businesses, especially micro, small and medium enterprises (MSMEs) which employ more than 62 percent of the country’s workforce.
Citing data from the Asian Development Bank (ADB) as of May 18, the organizations said the total package of policy measures implemented by the country on anti-COVID stood at $20 billion, the eighth lowest among the 11 countries in the region.
The Philippine stimulus spending versus COVID of 5.39 percent of its GDP is also the 8th lowest.
The spending translates to $186 per capita. At this level, the Philippines spending per person is way below what other countries in the region spend for their citizens, even lower than Vietnam and Timor Leste.
The groups noted how a law such as ARISE would “act on the lessons that many countries are heeding from previous recessions: that swift, substantial intervention is needed. “
The groups also noted the confidence-building of the passage of such a law and the wide-reaching impact on the economy once it is implemented.
“As the country reopens and the economic effects of the pandemic become clearer, a strong new law would provide much-needed support and confidence to COVID-19 frontliners, workers, and businesses. Unemployment funds and wage subsidies will help workers provide for their families, keep their children in school, and fuel the economy. Loans, grants, and guarantees will help businesses pay suppliers and banks, strengthening all of them for the challenging months and years ahead.
The groups also said ARISE would be an effective program for building on the Bayanihan Law and the measures President Duterte and the Bangko Sentral ng Pilipinas have rolled out and will serve as a powerful complement to the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE) proposed by the Department of Finance.
“We appeal to the House of Representatives, the Senate, and the administration to have thorough but speedy deliberations to produce a law for this stage of the crisis and recovery.
We support the calls for President Duterte to call a special session of Congress to act on this and other similar legislation,” the said.
They also assured the administration’s fiscal management has provided the financial strength and fiscal space to boost its spending provided under ARISE.
“ We can and should increase stimulus spending to approximate or exceed those of many of our neighbors,” the groups said citing the policy measures implemented by other countries in the region.
ARISE is a three-year economic stimulus which seeks P568 billion for this year and P650 billion for 2021.
The ARISE measure is set to create 1.5 million jobs through the implementation of infrastructure projects, and financially assist 5.57 million MSMEs.
