Government's biggest problem is lack of funds --Duterte
Shortage of funds has become the “gravest problem" of the government amid the coronavirus pandemic, President Duterte said Tuesday.
The President, in his taped remarks aired on state television Tuesday morning, admitted that revenue generation was affected after the economy contracted due to the pandemic.
According to the President, Finance Secretary Carlos Dominguez III was "in a bind” to raise funds, including borrowing money, for the pandemic response.
“Sabi ko na ano, ang pinakamabigat na problema ngayon sa gobyerno kasi walang pera. Wala lahat, bangkarota. Walang ekonomiya tumakbo ng ilang buwan, wala namang mga nagta-trabaho nagbabayad ng buwis sa kanya (I said the biggest problem of the government now is we have no money. Everything is gone, bankrupt. There is no economy running for a few months. No one was working, paying taxes to him)," Duterte said about his conversation with Dominguez.
"So I said that he is in a bind. He has a --- the gravest problem dito sa mesa na ito. Pero he retorted that “hindi, ikaw ang may problema, sunod lang ako.” Sa totoo lang, totoo talaga ‘yan (he has the gravest problem in this table. But he added that 'No, it's you who have the problem. I just follow you.' That's really true)," he said during his meeting with several Cabinet members in Davao City Monday.
The President recognized that the government must spend not only to address the pandemic but also to revive the stalled economy.
"We have to spend but we must have to spend wisely and correctly," he said.
"Kaya naiwan, kasi kung wala ng pera talaga bangkarota na, wala naman tayong kumita. Kung may magpahiram, kung walang magpahiram, maraming mamamatay. Hindi tayo makabili ng medisina (If we don't have money, it's bankruptcy. We don't have revenues. We can borrow but if no one lends us money, many will die. We can't buy medicines)," he said.
Early this month, the President admitted that the government funds have begun to dry up and could no longer bankroll subsidy and food to the people during the coronavirus pandemic. He said government savings are "just good for a drizzle" and not a typhoon in terms of dealing with the public health emergency.
The President, in another address, claimed that the government has ran out of funds that will be needed for emergency subsidy to affected sectors if the strict lockdown will be sustained.
The Department of Budget and Management recently reported that the government has released P376.57 billion for various COVID-related programs of government agencies. Finance authorities have also reportedly raised more than $7 billion in loans from various lenders to help finance the pandemic response.
The government earlier tried to gradually relax the country's quarantine restrictions to jumpstart the struggling economy and restore the livelihood of people but cases of infections continued to soar.
A recovery plan has also been prepared after the economy shrank by 16.5 percent in the second quarter of the year. The plan includes the passage of the proposed Bayanihan II law, the Build, Build, Build infrastructure program, and proposed 2021 national budget to stimulate economic activity and provide aid to affected sectors.