By THEPHILBIZNEWS STAFF
As the global economy suffers from COVID19 pandemic, Bangko Sentral ng Pilipinas Governor Benjamin Dikono believes that the Philippine government should embark on quick-disbursing, employment-generating programs that would lead to the economic recovery of our country.
The former Budget and Management Chief acknowledged that many businesses are affected by the impact of the pandemic and this led to unemployment and risk of a possible business closure.
In the Viber message, Dikono said, “The emergency employment is quick-disbursing and will certainly have a high multiplier effect. It is pro-poor and egalitarian.” Expressing his tacit knowledge that this is what the government needs to do to the next phase of the road to the New Economy.
The BSP governor also added that with this move, it would give the ordinary worker a greater sense of self-respect since he works for the food on his table by helping himself, the worker helps his fellowmen and society.
Funding the program
Just like any program, the need for funding is empirical. According to Diokno proposed that the government can make this program work with a supplemental budget in which he will leave to the President and economic managers to decide.
From his estimate, Diokno said, “that a one-percent increase in the deficit would amount to PHP200 billion of ‘new’ spending; a two-percent increase would amount to PHP400 billion”. Apart from that, part of the emergency fund can be used to create two million new jobs, which will be allocated to the 42,045 barangays and will be distributed based on the number of inhabitants per barangay and the level of unemployment per province or city.
To be specific, the BSP Governor said that he foresees the jobs that will be created under this program which are needed and attainable are for green projects like cleaning of rivers and tree planting; public works projects like road maintenance, fortifying sea walls and social housing; or health projects like contact tracing and maintenance work in Covid-19 facilities.
“These workers will be paid 10 percent lower than the minimum wage rate in the region, will work for eight hours, five days a week, for seven months” or from June to December this year, but this is sustainable and realistic,” Diokno explained.
With Bayanihan to Heal as One Act in place, the President can authorize to re-align the budget for this year for the Covid-19 response that would allow the government to extend financial help to the poor households.
But the BSP governor clarified that realistically the fiscal stimulus has limited impact.
“The change in the composition of the budget such as from slow-moving capital projects or budgetary assistance to government corporations to quick-disbursing cash grants makes some difference. But the main focus of the government now is to save lives, livelihoods, and jobs,” Diokno concluded.