Stimulus packages will come in three tranches — Cayetano

Stimulus packages to help the economy bounce back from the effects of the coronavirus disease 2019 (COVID-19) pandemic will come in three tranches, House Speaker Alan Peter S. Cayetano said Friday.

“As we know, we passed the ARISE and the CURES, which are both stimulus bills, but ang debate ngayon (the debate now) is whether how much ang pwedeng i-raise (can be raised) for that and how ire-raise (to raise it), meaning uutangin ba ‘to (will we borrow) or will we continue looking sa budget na pwedeng gamitin (at the budget that we can use). So, initially [the consensus we are coming to is]… is we’ll do it in three tranches,” he told reporters at a press conference in Camp Aguinaldo which was streamed live on Facebook.

Passed on third and final reading in the lower chamber, the ARISE bill, or the Accelerated Recovery and Investments Stimulus for the Economy of the Philippines, seeks to address the effects of the pandemic through a P1.3-trillion economic stimulus package.

Also passed on third reading was the CURES bill, or the COVID-19 Unemployment Reduction Economic Stimulus Act of 2020, which seeks to allocate P1.5 trillion for infrastructure projects to stimulate the economy.

Mr. Cayetano said that the three tranches will come first from the proposed Bayanihan II law, then the proposed economic stimulus packages, and lastly, a fund allotted in the 2021 national budget.

The proposed Bayanihan II Law is a supplemental measure to the Bayanihan to Heal as One Act (Republic Act 11469) which provides various forms of relief during the public health crisis, including an emergency subsidy to displaced workers, cash-for-work programs, and programs to mitigate the virus, among others.

The measure failed to pass on third and final reading in both chambers of Congress before it adjourned sine die on June 6.

The House Speaker added that the Bayanihan II law will involve some P100 billion to P200 billion in stimulus to help banks “come out with loans” and improve the capability of the Department of Labor and Employment and the Department of Social and Welfare Development to assist those who are unemployed.

Mr. Cayetano did not mention the amount for the two remaining tranches and when these will be implemented.

He said that Congress will be meeting with the officials from the Department of Finance this weekend to “iron out” the details of the proposed Bayanihan II Law.

“I can tell you now that the House is asking Malacañang not to peg the budget at the 2020 level. Dapat taasan ng konti kasi kailangan ng stimulus (It should be raised a bit because the stimulus is needed),” Mr. Cayetano said. — Genshen L. Espedido