A total of PHP2.5 Trillion has been allocated this year as part of the government’s three-pronged approach for economic recovery, Socioeconomic Planning Secretary Karl Kendrick Chua said.
The total budget for economic recovery this year is equivalent to 14 percent of the country’s gross domestic product (GDP) adding that about PHP2 trillion, or 11.3 percent of GDP, will come from the 2021 General Appropriations Act (GAA).
“In fact, the 2021 budget was designed to achieve our economic recovery alongside other complementary measures,” Chua said.
Chua also cited a World Bank survey showing 63 percent of businesses were open in November 2020. However, only 9 percent of the surveyed firms were operating in full capacity. These companies are operating at below capacity mainly due to financial constraints at 52 percent and insufficient consumer demand at 19 percent.
On top of this, the government also implements PHP478 billion worth of fiscal measures this year that including the PHP317 billion from the Bayanihan to Recover as One, PHP23-billion Social Amelioration Program 2, and PHP138 billion tax breaks to all enterprises under the CREATE law.
Chua stated that while the government provides fiscal support to the economy, the safe resumption of economic activities is critical for the economy to move forward in the face of the coronavirus disease. However, in order for the country to safely reopen businesses and recover jobs, the government must strengthen its strategy and ensure the vaccination program is implemented on time.