ROXAS: GOV'T NEEDS P100-B TO DEAL WITH FINANCIAL CRISIS

Liberal President Senator Mar Roxas today said the government needs next year P100 billion in safety nets, including direct cash subsidy to the poor and tax credits for fixed-income workers, to combat the effects of the ongoing financial crisis that has already affected the United States and Europe.

Roxas said the P100 billion can be sourced from the proposed 2009 General Appropriations Act and can be realigned from programs proposed to be funded there but were based on macro-economic assumptions prior to the start of the global financial crisis.

The P100 billion in safety nets should focus on three priorities, namely food security, job security, and health and education services, he said.

"First wave pa lang ng krisis, pero nakita na natin na ang laki ng epekto sa mga financial markets ng Estados Unidos at Europa. Kahit na medyo umayos na ng kaunti, hindi ibig sabihin nito ay ligtas na tayo," said Roxas.

He outlined his P100-bilion financial crisis budget as follows:

1. A one-time income tax credit or refund for four million fixed-income workers worth P5,000 each, or a total of P20 billion.

"People are going to be experiencing hard times. This means they will need as much help with their finances as they can get. By putting more money in people's pockets, we are able to stimulate consumer demand and keep our industries going," he said.

2. P20 billion as additional budget for the education sector, of which P4.2 billion be spent for classroom building; P3.8 billion for teachers' salaries and training; P4.2 billion for desks and furniture; P200 million for school books; P7.2 billion to finance an extra year of high school, pursuant to SB 2294; and P400 million for maintenance and other operating expenses.

3. P12 billion funding for the government's health peace corps program, which would provide 45,000 barangays with health care services and benefits.

4. P10 billion to the DSWD's Conditional Cash Transfer program, twice the current amount of P5 billion, to provide greater financial assistance to those who need it the most.

5. P10 billion in agriculture support, including programs to provide fertilizer support and rehabilitation and maintenance of 1.4 million hectares of irrigated land nationwide.

6. P10-billion allocation for the Development Bank of the Philippines for providing financial assistance to boost capital and productivity of micro, small and medium enterprises.

7. P3 billion to be allocated to the Overseas Workers Welfare Administration to help it deal with the expected return of thousands of OFWs affected by the projected job losses as the world economy slows down.

8. P10 billion on top of the budgets of agencies such as Philippine Health Insurance Corp., the Bureau of Food and Drugs and the Philippine International Trading Corp., among other agencies, which would also help in the implementation of the Cheaper Medicines Act, principally authored by Roxas.

9. An additional P5 billion in capitalization for the Bangko Sentral ng Pilipinas.

He also called for the following, which do not require outlays:

1. A three-year temporary increase in insurance for bank deposits from the present P250,000 coverage to P500,000;

2. A 90-day moratorium on foreclosures, to protect those unable to pay off their loans or mortgages;

3. Elimination of penalties for early withdrawal of bank deposits; and

4. Corporate income tax credit for each additional permanent employee hired, as an incentive for employers to provide job security

"Times have changed, and we must not be bound by old solutions that would not work today. Our people's lives depend on our responsiveness to the challenges ahead of us," he said.