Bayanihan 3, anyone?

By Art Jimenez

 

First it was Bayanihan Act to HEAL as One enacted on March 24, 2020. Then followed Bayanihan Act to RECOVER as One on September 11. The latter presupposes positive strides have been achieved towards fighting and weakening the pandemic in the last five months and two weeks and that recovery will eventually lead to normalcy.

Recall that Republic Act No. 11469, aka Bayanihan 1, granted the President a three-month authority to realign still unused budgetary appropriations to the tune of ₱275.0 billion. Specific goals were to contain the spread of COVID-19, provide sufficient healthcare to patients, prevent overburdening the healthcare system, extend social amelioration funds, and to ease the financial burden of families through grace periods on household bills and debt repayment.

It’s also worth mentioning here that the funds allotted and disbursed were out-of-budget because the General Appropriations Act of 2020 had already been passed when appropriations for Bayanihan 1 were laid out.

So Congress and the people may know, Bayanihan 1 required the President to render a weekly report on the fund disbursements and goal accomplishments to a congressional oversight committee tasked to review such expenditures and achievements.

For its part, Bayanihan 2 or R.A. 11494 is a mirror image of its predecessor but only on a larger scale and smaller budget. Goals are more inclusive and achievement bars raised higher. It also has an eye toward a calibrated opening of the economy, stimulate the business sector, and provide the impetus for economic growth.

However, its total budget amounts to only ₱165.5 billion that’s divided into two parts, namely regular appropriation of ₱140.0 billion and a standby fund of ₱25.5 billion. The ₱165.5 billion is ₱109.5 billion lower than the Bayanihan 1 allocation of ₱275.0 billion.

This is where daily government critiques attempt to grab the microphone and the spotlight. They bewail that the ₱165.5 billion Bayanihan 2 budget, an amount passed by Congress, was mani, peanuts, too little and too late. Taken per allocation, they cry some are too big and some are really small.

For instance, they find the 23.9 percent or ₱39.472 billion of the ₱165.5 billion earmarked for GFIs (government financial institutions) and the ₱25.5 billion standby fund as too big. GFIs include the Land Bank of the Philippines, DBP, GSIS, and SSS. According to the law itself, the amount reserved for the GFIs was to increase their loanable funds to complement the reopening of the economy. Main targets are the small firms in the MSME sector that have temporarily ceased operations or just simply died due to the series of lockdowns since mid-March.  Just ask the DTI how many of the almost 1 million micro- and small enterprises have turned turtle during this pandemic.

Small business cannot and do not rely on private commercials for their banking needs. These banks are collateral-oriented lenders that actually shy away from “small tine” companies and prefer “big time” borrowers.

As to the standby fund of ₱25.5 billion. Basic it is in financial planning that such reserves are maintained for contingencies in an unforeseen future especially during a pandemic. Usually, this fund accounts for somewhere between 10 and 15 percent of total appropriations. The aforementioned ₱25.5 billion standby fund takes 15.4 percent of the ₱165.5 billion Bayanihan 2 budget.

Critiques complain too of the P6 billion DSWD assistance for areas under granular lockdown as too small. Granular lockdown is implemented only in a barangay or part of it (like purok or sitio). And how many barangays will be under lockdown between now and December 31, pray thee tell.

Maybe we could devote one column on this subject in the near or far future, but meantime…

Let us breeze through the budgetary features of Bayanihan 2 for sectors and individuals adversely affected by the pandemic. The first two are the capital infusion into the GFIs and standby fund. Third are the loans to farmers, ₱24.0 billion; ₱13.5 billion for health-related activities; ₱13.0 billion for those involuntarily separated from work; and ₱9.5 billion for DoTr programs to assist the transport industry.

Next are: ₱6.0 billion for DSWD assistance for areas under granular quarantine; ₱5.0 billion for hiring and training contact tracers; ₱4.5 billion, construction of temporary isolation facilities; ₱4.5 billion, maintenance of isolation facilities including hotel billing, food, and transportation of those in isolation; and ₱4.0 billion for education sector transition to new normal.

Next are ₱4.0 billion for tourism industry; ₱3.0 billion assistance to SUCs, ₱3.0 billion for the purchase of PPEs, etc., ₱2.0 billion for loan repayment of LGUs, and ₱1.5 billion LGU support fund.

Next are ₱1.0 billion for TESDA scholarships, ₱820 million for DFA’s repatriation of OFWs, ₱600 million, allowances of qualified students severely impacted by the pandemic, ₱300 million for displaced teachers and non-teaching staff, and ₱180 million fir national athletes and coaches.

Finally are: ₱100 million for the training and subsidy of tour guides, ₱15 million for the U.P. Computational Research Laboratory, and ₱10 million for health technology assessment council (HTAC) research fund.

Two things for us citizens to remember. President Duterte has to render a monthly progress report to the people and Congress. And, Bayanihan 2 is only up to December 19, 2020 when the 18^th Congress adjourns.

What scenario is there for us when the calendar turns a new leaf to January 1, 2021? Will the vaccine be ready for distribution nationwide? Or will the COVID-19 curve flatten by then or continue with its up-down movements, such that…

Will there be a Bayanihan to GROW as One Act?