Cayetano: Four percent mandatory savings enough to fund cash aid program
Former Speaker Alan Peter Cayetano said the national government can implement mandatory savings of four percent to fund bigger cash aid programs for pandemic-stricken households.
In a media interview, Cayetano said the current administration can implement mandatory savings similar to fiscal measures introduced by former President Fidel Ramos.
“If we institute a mandatory savings of four percent this year, makakabuo ka ng close to P200 billion. More than enough iyon for all Filipino families na makatanggap ng P10,000,” he said.
(If we institute a mandatory savings of four percent this year, we will be able to collect around P200 billion. That will be more than enough for all Filipino families to receive P10,000.)
To expand the country’s direct stimulus program, Cayetano suggested that the country issue debt instruments similar to war bonds, which are wartime debt securities issued by a government to finance military operations.
“After every crisis, economic boom naman ang dumarating. Kaya nababayaran yung mga inutang through war bonds,” he said.
(After every crisis comes to an economic boom. That’s how governments were able to pay loans secured through war bonds.)
Citing recent reports of unused funds among different government agencies, Cayetano insisted that these funds can be used to give additional cash aid to every Filipino family.
“Marami rin kaming nakita na hindi nagagastos ng gobyerno. Kulang yung absorptive capacity ng agencies natin,” he said.
(We saw a lot of unused funds in the government. Our agencies lack absorptive capacity.)
The former Speaker said allotting P200 billion for cash aid will not be harmful to the economy, adding that the national government has numerous options at its disposal to secure funding for a bigger cash aid program.
“Another P200 billion para ilagay sa bulsa ng ating mga kababayan won’t be harmful to our economy,” he said. “Napakaraming paraan kung gusto talaga.”
(Another P200 billion to put in the pockets of our countrymen won’t be harmful to our economy. Where there’s a will, there’s a way.)
Cayetano and his allies have been pushing for the passage of the 10K Ayuda Bill since February this year. The bill aims to promote household consumption and stimulate the economy.
While the bill was consolidated into the Bayanihan 3 bill, its proposed amount for cash aid was not adopted. ####