Alternative fiscal stimulus strategy pushed

The Financial Executives Institute of the Philippines Inc. (Finex) has called for an alternative fiscal stimulus program to curb the economic fallout from the COVID-19 pandemic—but one that will not widen the national government deficit beyond prudent levels.

Finex was not among the 32 business groups that urged Congress to pass a supplemental budget that would widen the government deficit to 5 percent of the country’s gross domestic product.

The group instead called for an “emergency calamity amelioration program” that calls for the use of unobligated appropriations and excess funds of government-owned and -controlled corporation (GOCC)—a fiscal approach that will not add to the deficit.

Like other business groups, Finex urgently called for government intervention to “support and rescue the most vulnerable sectors of our society—the millions of poor, jobless and disadvantaged who are feeling the brunt of this national calamity.”

Finex urged Congress to immediately authorize, in an enabling measure, President Duterte to realign unspent or unobligated appropriations already embodied in this year’s General Appropriations Act for emergency calamity amelioration. The group called on Congress to authorize the President to disburse these as deemed necessary and appropriate under the circumstances and during the pendency of this public health and economic emergency.

Finex also urged Congress to give the President the authority to augment such funds in the budget with those of GOCCs’ to be used for the same emergency purpose and duration. INQ

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