A legislator asked the House of Representatives on Thursday to pass a bill setting up a P108-billion stimulus fund to lift the economy that is reeling from the downturn caused by the China virus.
The economic decline is expected to last until June.
Marikina Rep. Stella Luz Quimbo said the travel and tourism sectors will be hard hit by the virus’ spread, with the National Economic and Development Authority predicting a fall of 1.42 million in the number of tourist arrivals.
Quimbo, a member of the appropriations committee, filed a bill that seeks to reallocate P108 billion to finance a fiscal stimulus package as the main economic measure with which the government will address the public health emergency.
“Assuming a multiplier of about 1.7, a P108-billion stimulus to the economy will compensate for the expected losses from COVID-19 and keep the economy on track. This package may be funded through the GAA contingency fund and the unspent funds from the previous year, Quimbo said.
She said the Tourism department foresees a loss of as much as P49.2 billion due to the fall in the number of foreign tourists arriving in the Philippines.
On the other hand, she said, the Labor department estimated that some 30,000 to 60,000 workers would lose their jobs in the tourism sector.
She said at least 47 companies with more than 4,000 workers had implemented flexible work arrangements, such as short hours and reduced working days. At least 300 workers had been dismissed.
The other sectors of the economy will also be affected, she said.
But Quimbo said the General Appropriations Act or national government budget for Fiscal Year 2020 allocated only P13 billion as fund subsidies for contingencies, thus there was a need to allocate more funds to provide assistance to businesses that had experienced or were expected to experience substantial losses as a result of COVID-19 and provide sufficient safety nets and immediate assistance to the workers who had lost their livelihoods.