Contact Details

Rm. N-411, House of Representatives, Quezon City, Metro Manila, Philippines
+63 2 931 5497, +63 2 931 5001 local 7370

LAGMAN PROPOSES P1-TRILLION STIMULUS TO UPLIFT LIVES AND REVIVE BUSINESSES

Press Statements

Not less than P1-trillion is needed for a stimulus package for government to continue its social and labor amelioration assistance and to provide a lifeline for distressed businesses.

The funding shall include assistance not only to vulnerable families and displaced workers but also to other affected persons belonging to the middle class.

In a telephone conversation today (April 8) with Secretary Ernesto Pernia of the National Economic Development Authority (NEDA), we agreed that not only micro, small and medium enterprises (MSMEs) need assistance but also major corporations like airlines, shipping, land transport, hotels, export firms, and manufacturers, among others, need lifelines to recover and stay afloat.

Cash for the P1-trillion stimulus can be sourced from the following:

  1. Monetization by the Bangko Sentral ng Pilipinas (BSP) for budget support of an allowable portion of the country’s foreign reserves which was at a high of $83.2-billion as of END-MARCH 2019, provided a six-month import buffer is not jeopardized.

  2. Issuance of bonds by the Bureau of the Treasury (BTr) which the BSP shall purchase together with other qualified bidders.

  3. Extension and expansion of the “Tax Amnesty Act” or R.A. No. 11213.

  4. Grant of tax credit or special tax discounts for advance tax payments, subject to subsequent reconciliation of the actual tax due.

  5. Sale of government assets.

  6. Advances of dividends due to the national government from Government Owned and Controlled Corporations (GOCCs).

  7. Additional contributions from the Philippine Amusement and Gaming Corporation (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO).

  8. Legitimate savings from the 2019 and 2020 General Appropriations Acts (GAAs) like: (a) 10% across the board reduction of MOOE of all departments and agencies; (b) reduction of procurement of military hardware, IT equipment and facilities, and office equipment, among others; and (c) drastic reduction of foreign travel, seminars and conferences.

  9. Reduction in personal services (PS) by not creating new positions and not filling up vacant positions, among others.

The requirement under Sec. 25 (4) of Article XI of the Constitution for a special appropriations bill to be supported by funds actually available as certified by the National Treasurer, or to be raised by a corresponding revenue proposal, is satisfied by the available funding sources as well as of revenue administrative measures which do not impose new taxes.

 

EDCEL C. LAGMAN