NEDA says P1.3 trillion stimulus package not fundable

The National Economic and Development Authority (NEDA) has stated that the proposed P1.3 trillion economic stimulus package approved by the House of Representatives is not fundable.

Acting Socioeconomic Planning Secretary Karl Kendrick T. Chua explained that the ARISE Philippines Act would necessitate new revenue sources that the government currently lacks.

Chua also noted that financing the stimulus through borrowings would be imprudent due to the national government's budget deficit spending limits.

Instead, NEDA proposed that lawmakers consider the effectiveness of President Duterte's existing fiscal, budgetary, and monetary measures to support the economy.

Chua highlighted that their current P130 billion stimulus plan is considered appropriate and fiscally responsible, with funds allocated to government financial institutions for lending support.

He illustrated how capital infusions and credit guarantees can be leveraged by institutions like the Development Bank of the Philippines and the Philippine Guarantee Corp. to provide significantly more support than direct subsidies or loans.

NEDA plans to meet with lawmakers to discuss the fiscal implications of the P1.3 trillion stimulus proposal and provide comments on the bills.