Senator Sherwin Gatchalian on Sunday said the government should begin preparing a supplemental budget to shield Filipinos from possible economic fallout if tensions in the Middle East continue.
Gatchalian, who leads the Senate PROTECT (Proactive Response and Oversight for Timely and Effective Crisis Strategy) and Finance committees, warned that extending amelioration programs could require an additional P60 billion to P400 billion under a worst-case scenario, if the conflict drags on.
“A supplemental budget or Bayanihan 3 is really necessary. For example, a loan reprieve could be granted. For credit cards, interest charges could also be waived for the next one or two months. There are many components to that,” the senator explained.
A preliminary PROTECT report submitted to Malacañang recommended a targeted relief package that includes P1,500 in monthly aid for 5 million minimum wage earners and workers in micro, small and medium enterprises at a cost of P7.5 billion.
The same report also proposed a P1,500 monthly cash top-up for 3.5 million beneficiaries of the Pantawid Pamilyang Pilipino Program, or 4Ps, costing P15.75 billion over three months.
It also pushed for expanded support for near-poor families and newly vulnerable households through P3,000 in monthly financial assistance for 1.4 million families, costing P4.2 billion each month.
Senate President Pro Tempore Panfilo Lacson separately said the government should maximize around P230 billion in potential funds from the 2025 and 2026 national budgets.
Lacson said those funds include nearly P200 billion in unobligated and unreleased appropriations under the 2026 General Appropriations Act and another P31 billion under the 2025 budget.
“The government must plan this carefully and have a clear direction on how the available funds will be used, as well as where the other powers under the state of energy emergency will be applied,” he said.
The four-term senator said the most affected sectors, particularly transportation, should be prioritized because assisting them would also benefit middle- and low-income commuters.
Lacson said cash aid may still be part of the response, but stressed that any distribution system must be driven by data to ensure assistance reaches intended beneficiaries instead of political figures or their relatives.
Additionally, the veteran legislator cautioned against hastily suspending the value-added tax on petroleum products, saying the proposal requires deeper study because of its potential fiscal consequences.
Lacson said the government could lose more than P320 billion in revenues if VAT on fuel is suspended, on top of about P200 billion in foregone revenues if excise taxes are also removed.
“It is not that simple. Some calls for suspending the VAT may sound good to the people but its impact on our economy is huge. We may suffer in the long- or medium-term,” he said.
