Chiz: Robredo’s P100-B Stimulus Package for MSMEs an ‘Economist’s Roadmap’ to Pandemic Recovery
Sorsogon Governor Chiz Escudero is backing the proposal of Vice President Leni Robredo to fund a P100-billion stimulus package for micro, small and medium enterprises (MSMEs), which contribute about 40% to the country’s gross domestic product (GDP).
The proposal is an “economist’s roadmap” to pandemic recovery of the MSMEs—a sector that employs approximately 63% of the Philippine workforce, said Escudero, a veteran lawmaker who is vying for a Senate seat in the May election.
“Tama ‘yung prescription ni Vice President,” said Escudero. “‘Yan ang kailangan ng maliit na mga negosyo at mga pagawaan.”
Up to 99.5 percent of the estimated one million establishments in the country are MSMEs as per data from the United Nations Development Programme. “There can be no national recovery without MSME revival,” said Escudero.
“These firms employ two in three workers, or 63 percent of labor. They account for 40 percent of the GDP, or about P8 trillion. They are not a sub-sector of the economy, they are the economy,” he added.
Escudero explained that helping MSMEs, which are defined as enterprises with less than P100 million in assets and fewer than 200 workers, “gives high social and economic ROI (return of investment).”
He said Robredo’s proposal for a P100-billion aid package “is financially affordable and fiscally responsible.”
“The P100 billion is equivalent to what the government will borrow in 15 days this year, said Escudero.
“Yung uutangin natin this year for our net financing needs is P2.33 trillion. Ibig sabihin, daily mga P6.38 billion. So yung P100 billion katumbas lang ng perang uutangin natin sa loob dalawang linggo,” Escudero said, based on his calculation.
“So ‘yung P100 billion stimulus is the MSMEs’ contribution to the economy in just four days,” added Escudero.
Escudero, who served two full terms as senator before becoming governor of Sorsogon in 2019, said the stimulus package is only one component of government help to stir the MSMEs waylaid by the public health crisis
“Three Rs ang kailangan ng MSMEs — recovery, resources and cutting red tape,” he said.
“We would be needing more of these now because of the economic fallout from Russia’s invasion of Ukraine,” said Escudero.
On Saturday, during the presidential debate sponsored by the Commission on Elections, Robredo promised that a P100-billion stimulus package for MSMEs will be a priority of her administration. #
