BUDGET Secretary Wendel Avisado yesterday said the national government could consider borrowing more money to fund the proposed P405.6 billion in assistance packages under the Bayanihan 3 as the administration has yet to find a possible source for the recommended cash aid and stimulus program.
Avisado, in a radio interview, said the economic development cluster of the Cabinet will meet to discuss where to source the proposed Bayanihan 3, which is now pending in Congress.
He said appropriations for specific programs and projects under the 2021 national budget cannot be simply realigned, as proposed by some lawmakers, since doing so could derail other government programs which are dependent on or related with the said undertakings.
Avisado likewise said a law is needed to realign the budget, pointing out that the annual appropriation is embodied in the 2021 General Appropriations Act (GAA).
“If we adjust the budget, some projects will be affected as the budget has already been approved. If there are other sources of fund, if there is excess revenue, hopefully there is, (but) for now the economy is slacken. I don’t know any other sources. Maybe we can borrow,” Avisado said.
Avisado said the executive branch is already implementing several austerity measures, such as doing away with conventions and seminars, so it can augment funding for coronavirus disease (COVID-19)-related initiatives.
The DBM chief reminded lawmakers that while the country enjoys low interest rates due to its good credit ratings, new borrowings could affect the current debt to gross domestic product (GDP) rate of 58 percent.
Avisado said only 42 percent of the current budget is funded by government through generated revenues, while the 58 percent is from borrowed funds or loans.
Asked if the Bayanihan 3 is urgent, Avisado said the national government is already using three budgets at present — the 2020 budget which is implementable until December 31, the Bayanihan 2 which is implementable until June 30, and the 2021 budget which is effective until December 31.
The proposed Bayanihan 3, among others, aims to provide a P2,000 cash aid to the 110 million Filipinos and fund the P546 billion retirement pay of the members of the military and other uniformed personnel.
Interior Secretary Eduardo Año yesterday said 18 towns and cities have already completed the distribution of cash aid to low-income residents in the NCR Plus affected by the March 29 to April enhanced community quarantine.
Thirteen of these are in Laguna – the cities of Biñan, Cabuyao, San Pedro and Sta Rosa and the towns of Alaminos, Calauan, Famy, Magdalena, Nagcarlan, Paete, Pila, Rizal, and Santa Cruz.
The five others are Guiguinto and Pandi towns in Bulacan, and Tagaytay City and Amadeo and Naic towns in Cavite.
“Eighteen LGUs have already crossed the finish line as they have already distributed the full amount of ayuda (aid) downloaded to them by the national government,” said Año.
Año said the 18 LGUs distributed P1.93 billion in financial assistance to their constituents.
Año said other LGUs in the NCR Plus are working round the clock to complete the distribution before the May 15 deadline.
The President approved the distribution of P22.9 billion in cash assistance amounting to P1,000 per person, or a maximum of P4,000 per family, to poor families affected by the two-week ECQ in the NCR Plus.
The funds were downloaded to local government units on April 5. Local executives were initially given a 15-day deadline, or until April 20, to complete the distribution but the deadline has been extended to May 15.
Overall, Año said the distribution of the P22.9 billion aid is already 80.95 percent complete, with the distribution of P18.6 billion to intended beneficiaries.
Laguna has the highest completion rate at 93.84 percent, followed by NCR at 81.92 percent, Bulacan at 80.52 percent, Rizal at 74.41 percent and Cavite at 72.99 percent.
In NCR, the LGUs with the leading completion rate are Pateros town (97.28 percent), Caloocan City (97.18 percent), Quezon City (95.97 percent), Manila City (95 percent), Pasay City (93.47 percent), Mandaluyong City (93.02 percent) San Juan City (92.66 percent) and Navotas City (90.68 percent). — With Victor Reyes
