P150-B funds to be realigned for Covid-19 response: Palace
Around PHP150 billion from the budget items of the executive branch would be realigned to augment the funds for the government’s coronavirus disease 2019 (Covid-19) response, Malacañang said on Saturday.
Presidential Spokesperson Harry Roque made the statement in a radio interview following President Rodrigo Duterte’s recent order for Budget Secretary Wendel Avisado to look for additional funds that can be used to address the Covid-19 pandemic.
“Alam na natin kung magkano mare-realign natin doon sa mga current budget ng executive at tinitimbang na lang po ‘yun… Ang sabi sa akin, mahigit kumulang mga PHP150 billion (For now, we already know how much from the current budget of the executive can be realigned. It’s still being weighed. I was told it was around PHP150 billion),” Roque said.
Duterte earlier directed Avisado to realign public funds to expand the number of Filipino families who will receive aid from the national government amid the health crisis.
Roque said the government is still assessing how it would spend the budget that would be realigned to boost the fight against Covid-19.
“Kaya nga po pinag-iingatan kung saan gagastusin ang PHP150 billion kasi beyond PHP150 billion, talagang kinakailangang pumunta for a supplemental budget (We are really being careful as to how we will spend the PHP150 billion because going beyond that would mean asking for a supplemental budget),” he said.
This developed as the government acknowledged that it cannot afford to ask Congress for a supplemental budget, Roque said.
Roque admitted that the government would have a hard time asking for a supplemental budget because of the low tax collection due to the quarantine protocols imposed to stop the spread of Covid-19.
“Hindi ka naman pupwedeng magkaroon ng supplemental budget ng wala kang sources of revenue (You cannot ask for a supplemental budget if you do not have sources of revenue),” he said.
To further boost the Covid-19 funds, the government is also planning to apply for loans, Roque said.
Roque said the country can still borrow money because despite its low credit rating, it is still high compared to the credit scores of its neighboring countries.
“Kaya nga nakakautang tayo at umutang naman tayo habang mababa pa ang interest rate (That’s why we were able to borrow and we are borrowing money while the interest rates are still low),” he said.
The Philippines has so far borrowed from foreign lenders and secured grants worth nearly USD5 billion, the Department of Finance (DOF) reported.
The DOF has noted that some USD4.05 billion of the USD4.858 billion of foreign loans have already been downloaded to the government for its Covid-19 response. (PNA)