Leaders of the House of Representatives on Tuesday said the passage of the proposed Bayanihan 3 law has become more imperative as the country’s gross domestic product fell 4.2 percent in the first quarter of 2021.
Speaker Lord Allan Velasco, Albay Rep. Joey Salceda and Marikina Rep. Stella Luz Quimbo said the “best tool” to prevent a long economic downturn is for the government to go big on another relief package under the Bayanihan 3, which proposes a P405.6-billion fund to stimulate the nation’s recovery from the COVID-19 crisis.
“The government needs to infuse a substantial amount into the economy by providing much-needed aid to individuals, businesses and communities severely affected by the health crisis. We strongly believe that government expenditure is the only immediate recourse to pump prime the economy,” said Velasco.
“There is also an urgent need to address the slowdown in the construction industry which, at negative 24.2 percent, is a major contributor in the decline of our GDP. With private sector infrastructure at a standstill, the government should take the lead in reinvigorating our construction sector,” he added.
For his part, Salceda said the reduction in year-on-year GDP for the first quarter is unsurprising but still disappointing.
“[But] we cannot pass on the burden of economic recovery to the personal resiliency of our people. We need the structural environment necessary to allow people to recover. A quicker vaccine rollout is the most important economic intervention in this regard. The sooner we can vaccinate more people, the better,” he added.
While the health conditions for a safe reopening are not yet present, Salceda said the government must acknowledge the need for household relief.
“Protecting household incomes is our strongest bridge to the vaccine. It keeps people alive and incentivizes healthy behavior, such as staying at home and not taking unnecessary risks. This is why some form of additional support through some version of Bayanihan 3 is still necessary,” he added.
As Congress will resume session next week, Quimbo, for her part, said it will waste no time in passing Bayanihan 3.
“Government must step in to steer our economy towards recovery and avoid persistent decline and inflation. There are proposals ready and available in Congress to achieve this. If we act swiftly on responsive legislation, perhaps our economy can still avert further losses and stay on track for development,” she said.
Quimbo said cash assistance is needed so Covid pandemic-affected families can properly isolate without worrying about covering their basic needs.
“Subsidies can be given to help small businesses cover wages, so that workers get their due pay and jobs are preserved. For those who have already lost jobs, we can provide assistance through emergency employment programs. These are just some of the recovery measures included in Bayanihan 3, which was recently approved at the committee level,” she said.
“High prices for basic commodities just make it that much harder for families to cope during this recession,” Quimbo added.
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