The national government’s response to Covid-19 has amounted to 3 trillion pesos since the start of the pandemic, the Department of Finance (DoF) reported.
“When the Covid-19 hit, the Duterte administration acted quickly to protect the lives of Filipinos. The Philippines’ direct response to the Covid-19 crisis has so far amounted to 3 trillion pesos, or 15.6% of our GDP (gross domestic product). Secretary Carlos Dominguez 3rd pointed out during the recent Philippine economic briefing.
Dominguez indicated in his presentation that the government has spent 648.2 billion pula for emergency aid to vulnerable populations. He also raised 227.25 billion pesos for the fight against Covid-19.
Meanwhile, Bangko Sentral ng Pilipinas (BSP) monetary actions to keep the economy afloat totaled 1.41 trillion pesos.
Central Bank Governor Benjamin Diokno detailed the monetary activities, saying during a briefing that the BSP has implemented initiatives that have supported the economy during the pandemic.
He pointed out that the first step is to boost market confidence by lowering the policy rate to encourage borrowing activities and lowering reserve requirements to increase loanable funds.
Second, Diokno pointed out, there were extraordinary liquidity measures, such as interim advances and dividend remittances to the national government, as well as secondary market purchases of government assets.
“So far, the BSP has injected more than 2.2 trillion pesos into the financial system, which is equivalent to around 11.1% of GDP,” he said.
Third, the head of Bangko Sentral noted, there were regulatory and operational relief measures to maintain the stability of the financial system and enable public access to financial services.
He said the central bank’s pandemic exit strategy encompasses recalibrating monetary operations, unwinding liquidity provision, reducing monetary easing and creating buffers in anticipation of future crises as that the Philippine economy recovers.
“We will continue to assess demand and supply conditions to ensure that we are able to implement our exit strategy in a timely and orderly manner. We will strive to find the right balance between supporting the economy on the one hand and the fulfillment of our mandates of price stability and financial stability on the other,” said Diokno.
He also said that PASB supports policies and measures that will contribute to the achievement of its mandates, as well as to post-pandemic economic recovery, such as the institutionalization of policy reforms to address the supply constraints of the major commodities to help mitigate threats to domestic markets. price stability.
It will also promote the Financial Consumer Protection Act, which will improve the quality of financial services and contribute to broader financial inclusion, as well as the Digital Payments Act, which will drive the widespread adoption of safe and efficient digital payments.