Congress has moved closer to helping the Duterte administration achieve the growth target of 6.5 to 7.5 percent in 2020 with the impending passage of new legislation extending the validity of portions of the 2019 General Appropriations Act until December next year, a House leader said on Tuesday.
Deputy Speaker for Finance Luis Raymund Villafuerte issued the statement after the House last week approved on third and final reading the bill allowing the government to continue disbursing funds for capital outlays and maintenance and other operating expenses under the 2019 national budget for one more year until Dec. 31, 2020.
“This will serve as a fiscal stimulus that will further stimulate economic activity and keep the domestic economy on its upward trajectory in 2020 and onwards,” Villafuerte said.
Meanwhile, the Senate has approved on third and final reading the bill extending the validity of the capital outlay and maintenance and other operating expenses in the 2019 national budget for one year.
After completing the period of interpellations for the P4.1-trillion national budget, the Senate took up House Bill 5437, and with a vote of 19-0-0 decided to adopt it without amendments, paving the way for its immediate transmittal to Malacañang since a bicameral conference committee meeting would no longer be necessary.
Villafuerte is one of the co-authors of the measure, having filed earlier House Bill 5424 calling for the extension of the 2019 budget’s validity.
The Senate has approved a similar measure on second reading.
The government is now implementing a cash-based budgeting system, which necessitates a new law allowing the extension of the 2019’s budget validity to 2020.
“The Congress has enough time to approve this measure, which, if not enacted, will force the government to withhold funds for the construction of more schools and health facilities as well as for providing electricity in the far-flung communities, among other spending priorities,” Villafuerte said.
He recalled that the delayed approval of the 2019 budget during the 17th Congress had led to lackluster growth in this year’s first semester as Malacañang had to hold off the implementation of new and ongoing projects while it operated on a reenacted 2018 budget in the first quarter and most of the second quarter.
Villafuerte said two national budgets being implemented at the same time would allow the government to further accelerate its spending program on infrastructure and human capital development, which was a driving force behind the third quarter’s growth rebound.
The economy recovered in the July-September period with the gross domestic product growth hitting a higher-than-expected 6.2 percent, up from 5 percent in the first quarter and 5 percent in the second quarter.
Villafuerte renewed his call for the senators to work with their House peers in further raising 2020 budgetary outlays for infrastructure, education, health, and agriculture.
More funds for these four sectors would support Duterte’s agenda of accelerating spending on infrastructure and human capital development, Villafuerte said.
He recalled that the House proposed institutional amendments covering these four sectors in its approved version of the 2020 GAA.
“We hope the Senate will also adopt these amendments to provide additional funding for these sectors, which will help further rev up the economy and sustain its high growth rate next year,” Villafuerte said. With Macon Ramos-Araneta