The economic team of the Philippines is looking for additional sources of revenue to fund the Bayanihan 3 or the Bayanihan to Arise As One Act currently pending in Congress.
Finance Secretary Carlos Dominguez III said the economic team is now working with Congress leaders regarding the Bayanihan 3.
“Together we are exploring additional sources of revenue to mitigate the impact of an expenditure program on our fiscal deficit,” Dominguez said in a virtual press conference during the Sulong Pilipinas Forum on Monday.
The Finance chief said the economic team is looking at cutting down non-essential government expenditures, and increasing the dividend rate of government-owned and -controlled corporations (GOCCs) to 75% from 50%.
“Again this is part of the first alternative which is additional revenue sources and additional stimulus program,” he explained.
On Monday, Budget Secretary Wendel Avisado said the Philippines is projected to post a fiscal deficit of P1.780 trillion this year.
the deficit is expected at 8.9% of the gross domestic product (GDP), higher than 7.6% of the GDP in 2020, Avisado said.
PH looking for Bayanihan 3’s fund source
“The programmed disbursements for fiscal year 2021 also account for the extension of the validity of fiscal year 2020 general appropriations act until December 31, 2021, and the appropriations under Bayanihan 2 until June 30 of this year,” he said.
“For next year, the deficit will be gradually lowered to 7.3% of GDP as the government continues to implement a fiscal consolidation strategy to rebuild its fiscal space and lessen the burden from borrowings and debt,” he added.
In February, presidential spokesperson Harry Roque Jr. said that President Rodrigo Duterte will not endorse the proposed P420-billion stimulus package proposed by Speaker Lord Allan Velasco called “Bayanihan 3” to address the impact of the COVID-19 pandemic.
Roque said that the P4.5-trillion 2021 national budget and the P165-billion Bayanihan to Recover as One (Bayanihan 2) law are enough to address the effects of the pandemic.
In December 2020, Senate President Pro Tempore Ralph Recto said he filed a Bayanihan 3 bill worth P400 billion to boost the country’s economic recovery amid the COVID-19 crisis.
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