THE chair of the House committee on ways and means yesterday said a third Bayanihan law composed primarily of “lifeline measures” to extend financial aid to the poor amid the COVID-19 pandemic “will be funded in a way that does not increase the country’s deficit.”
“In all likelihood, there will be a third Bayanihan measure. It will be deficit-neutral, if my work with (Finance) Secretary (Carlos) Dominguez succeeds,” said Rep. Joey Salceda (PDP-Laban, Albay).
Salceda has been working with the Department of Finance to find revenue sources for the measure which could be approved by his panel jointly with the committee on economic affairs either this week or the next, although a special session might no longer be called to rush its plenary approval.
While the question of funding is very “tangled,” Salceda said, “what cut the Gordian knot” was the proposal to temporarily increase the mandatory dividend remittance of government-owned and controlled corporations (GOCCs) to 75 percent from 50 percent, which will require an amendment of RA 7656 or the Dividends Law.
“This is probably worth P70 billion,” said Salceda who also proposed to allow the DOF to make capital withdrawals from “obese” GOCCs.
“There are GOCCs that have accumulated more retained earnings over the years than they can deploy, especially now. Authorizing a distribution in excess of dividends, in favor of the government, would allow us to mobilize sleeping money for COVID-19 response without hurting our overall fiscal standing,” Salceda said.
Salceda also said the finance department will check the list of GOCCs “for possible capital withdrawal.”
Speaker Lord Allan Velasco has been batting for the passage of his Bayanihan 3 bill which proposes a P420-billion fund to stimulate the nation’s economic recovery from the COVID-19 crisis. He said a third economic stimulus package will provide much-needed lifeline to individuals, families and businesses severely affected by the pandemic. He filed the measure in February after the passage of a bill extending the validity of Bayanihan 2.
Salceda said Bayanihan 3 will be principally composed of lifeline measures aimed at alleviating poverty and hunger because “we can’t do (a) full-blown stimulus just yet because we have not yet maximized mobility.”
“When the velocity of money is slow, it is unwise to infuse liquidity for growth. But we need to feed our people. So, actually, Bayanihan 3 will not be stimulus, but mainly lifeline,” he said.
The current draft of the technical working group on Bayanihan 3 includes P108 billion for universal basic income of P1,000 per head, with another P108 billion in standby funds; P12 billion in direct funding for assistance for individuals in crisis situations (AICS) of the Department of Social Welfare and Development, and P3 billion for Medical Assistance for Indigent Patients (MAIP).
He also said the DOF will soon endorse the passage of taxes on offsite cockpit betting operations or e-sabong, and Philippine Offshore Gaming Operations.
The House has passed its versions of these reforms, with Salceda as principal sponsor.
“Secretary Dominguez supports the POGO taxes. He is also inclined to endorsing the e-sabong tax, but wants a study on the matter. I have already asked the committee secretariat to supply the necessary materials so his staff can run the numbers,” Salceda said.
Salceda said the Senate is likely to pass POGO taxes as soon as session resumes, and will discuss the e-sabong taxes soon as well, which will be followed by bicameral meetings with congressmen by May or June.
