Senators, economic managers eye new revenues for stimulus package

Senators and economic managers agree on the need for additional revenues to fund a proposed economic stimulus package to aid in post-COVID-19 recovery.

Senate Minority Leader Franklin Drilon clarified that the Constitution prohibits the use of loans to fund a supplemental budget, emphasizing that funding must come from available savings, realignments, or new revenue sources.

Senator Panfilo Lacson echoed this sentiment, stating that a stimulus package cannot be enacted without an accompanying revenue measure or proof of available funds.

The House of Representatives' proposed ARISE Act, a P1.3 trillion stimulus package, was deemed unconstitutional and unfundable by economic managers due to a lack of identified revenue sources.

Senate President Pro Tempore Ralph Recto suggested that the executive department should consider proposals for standby authority to spend available funds, which could be sourced from increased duties, new revenue streams, borrowings, or central bank agreements.

Senator Sonny Angara stated that economic stimuli are necessary this year and mentioned that the Senate has been collaborating with economic managers to create a fundable bill.

Despite efforts to create a fundable bill, economic managers indicated that the government could only allocate P130 billion to P140 billion for the current year.

The Senate's proposed Bayanihan to Recover as One Act includes a P140 billion standby fund for COVID-19 response and recovery programs, while the House's version requires P162 billion.