House economic cluster co-chair, Marikina Rep. Stella Luz Quimbo said the pandemic-induced recession requires a proportionate response to help the country bounce back nect year.
The government earlier reported a 16.5% shrinkage of the country’s gross domestic product (GDP) in the second quarter this year, deeper than the revised -0.7 percent in the previous three months and the lowest since 1981.
“The economic managers now estimate the economy will contract by 5.5 percent overall in 2020. This means we stand to lose PHP2.4 trillion in output. To avert that loss, we need a stimulus of PHP1.5 trillion,” under clear plans to defeat the Covid-19 which already infected some 145,000 Filipinos as of the latest reckoning.
Quimbo urged the country’s economic managers to support the ARISE bill as a Bayanihan Part 3. “Surgery is now needed for the economic wound. Bayanihan to Heal as One Act (Bayanihan 1) is the first aid, Bayanihan to Recover as One bill (Bayanihan 2) is the emergency room, but these are not enough to revive the economy. May the ARISE bill arise as Bayanihan 3 complete our initiative,” she said
The ARISE bill contains a comprehensive plan to address the economic crisis, with an allocation of PHP1.3 trillion over three years. Quimbo said the bill gives special attention to small businesses that need resource help most to stay afloat. The bill seeks to allocate P60 billion for loans and assistance for micro, small and medium enterprises under the Department of Trade and Industry and Small Business Corp.
The measure also proposes to provide assistance for critically-affected sectors such as tourism, transport and manufacturing-exporting sectors.
Quimbo said the House-approved ARISE bill has been the subject of extensive consultations with the private sector, regulators and the academe and further validated with data. “Congress has done the hard work — the Executive need not look far to find a suitable plan of action,” she added. (With PNA)