THE government is eyeing to tap the P23-billion “unutilized” fund under the Bayanihan to Recover as One Act (Bayanihan 2) to give aid to people affected by the new round of enhanced community quarantine (ECQ) in the National Capital Region (NCR) and its surrounding provinces.
Citing data from the National Economic and Development Authority (Neda), budget officials indicated the latest government assistance, whether it is in cash or in kind, could benefit 22.9 million beneficiaries from NCR Plus —Metro Manila, Laguna, Cavite, Rizal and Bulacan.
“Based on our projection, this will tide them up at least up until the time that,” Budget Secretary Wendel Avisado said in an online press briefing.
Deficit impact
Avisado said the distribution of the assistance will depend on when President Duterte approves the fund release and how efficiently it will be used by local government units.
As of Monday morning, he said they were still waiting for the President’s action on their budget proposal to help people whose employment was disrupted by the weeklong ECQ.
The government placed NCR Plus under ECQ effective midnight of Monday in its attempt to slow the surge of daily new cases of Covid-19, which breached the 10,000 mark.
Sought for comment on whether the distribution of financial aid would still keep the country’s budget deficit within the target, Finance Secretary Carlos G. Dominguez said: “I suppose so.”
The government expects the budget deficit this year to rise to P1.78 trillion or 8.9 percent of GDP.
In 2020, the government’s budget deficit soared to a new record high of P1.37 trillion, more than double the previous-high shortfall of P660.2 billion.
Possible extension
Avisado said they are also now planning contingencies in case the ECQ in NCR Plus is extended or even expanded to include other areas after April 4, 2021.
“We’re tied up to what we have right now [in terms of funds of aid] and that’s why the DBCC [Development Budget Coordination Committee] is going to meet later this afternoon precisely to talk about the ways forward, considering that we also anticipate other regions will also have problems,” Avisado said.
Presidential spokesman Harry Roque said the IATF is considering the option of extension, as proposed by health experts including the OCTA Research group of the University of the Philippines (UP) and the Department of Health (DOH) Epidemiology Bureau.
“There is a preliminary recommendation to the President on this [extension of the ECQ],” Roque said.
He said the IATF is weighing the potential public health benefits of extending the ECQ and its impact on business operations.
Based on their initial data, he said the difference in the projected new Covid-19 cases between ending the ECQ next week and extending it by midweek will be “minimal.”
Image credits: Nonie Reyes
Read full article on BusinessMirror
