President Rodrigo Duterte, on the advice of Finance Secretary Sonny Dominguez, has cautioned senators against approving an economic stimulus package beyond P140 billion because he would veto anything beyond that limit.
RELATED STORY: Binarat! Senate approves minuscule P140B stimulus fund as Dominguez balks at massive spending even if PH economy collapses
This was the reason why senators were forced to approve just 10 percent of the P1.3 trillion economic stimulus package approved by the House on the same day, June 4.
“Senators all wanted a bigger stimulus package of up to P670 billion but economic managers complained, claiming they could not afford it especially after the massive spending for Bayanihan first phase,” said a source in a report by Bilyonaryo.com.ph.
“So the senators agreed that the P140 billion would just be the first salvo and called it a ‘mini stimulus program’ with more hearings to be conducted on a bigger stimulus,” the source added.
The source said senators were informed of Duterte’s veto threat through Senator Bong Go.
Dominguez is claiming that that government could not allocate too much for a stimulus package after spending heavily for subsidies (P100 billion per month) and emergency construction of medical facilities and purchase of protective gear during the 10-week lockdown.
With revenue collections likely to fall due to business closures and unemployment, the government will be forced to borrow more for a stimulus package.
Dominguez has stood firm on his playbook of avoiding borrowings even if the only way to speed up the country’s bounce back from an imminent recession was to increase spending.
Source: Latest Politics News Today (Politics.com.ph)
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