The Philippines: Government preparing package to aid small firms

• THE economic team is working on an economic package and rehabilitation plan to keep small and medium-sized enterprises (MSMEs) afloat after the quarantine period, which shut down most economic activity.
• In a Viber message, Finance Secretary Dominguez told reporters that the draft package is expected to be ready “by the end of the week.”
• “I think the package to be rolled out will focus on keeping SMEs alive and viable after the lockdown,” Finance Assistant Secretary Maria Teresa Habitan told BusinessWorld.
• Habitan said the package will tap the PHP275bn freed up under “Bayanihan“ Republic Act No. 11469 which allowed the government to realign funds from the national budget and make off-budget outlays for relief measures in response to the coronavirus disease 2019 (COVID-19) outbreak.
• The size the new economic package is not yet determined.
• Mr. Dominguez said so far, the government has more than PHP200bn at its disposal to fund the emergency subsidy, “more than PHP100bn-worth of cash and cash equivalents in various GOCC (government owned and controlled corporation) accounts and another PHP100bn more in various national government accounts outside the Treasury Single Account (TSA).”
• Earlier, the finance chief said the Philippines’ deficit level may breach 4% of gross domestic product (GDP) in 2020, higher than the initial estimate of 3.6%.
• He said COVID-19 is seen to cut revenues by as much as PHP286.4bn if economic growth settles at 0% in 2020. If the economy contracts by 1%, the drop in revenues would reach PHP318.9bn.

External Link : https://www.bworldonline.com/government-preparing-package-to-aid-small-firms/

External Link : https://www.philstar.com/business/2020/04/01/2004617/government-crafting-another-economic-stimulus-rehab-plan