DOF Vows to Push the Passage of GUIDE Bill by Mid 2022
The Department of Finance (DOF) announced on Monday, May 3, its plans to complete the passage of the Government Financial Institutions Unified Initiatives to Distressed Enterprises for Economic Recovery (GUIDE) bill by mid-2022.
DOF Finance Secretary Carlos G. Dominguez expressed his determination in pushing for the passage of key reform measures that will support the Philippines’ sustainable and robust recovery from the crippling effects of COVID-19.
He also noted the strength of the Duterte Administration is pushing its “zero to ten point” socioeconomic program, particularly tax reform initiatives since it took office in 2016. The GUIDE bill is the last remaining economic reform lined up before President Rodrigo Duterte steps down from office next year.
Under the GUIDE bill, state-run banks will be given funding to expand their support and loan programs to micro, small, and medium enterprises (MSMEs) that were greatly affected by the COVID-19 pandemic.
The bill proposes a ₱10 billion budget to state-run banks to provide for distressed MSMEs.
Along with the GUIDE bill, economic managers will pursue other urgent financial measures before the 2022 election period begins. Such efforts include the amendments of the Foreign Investments Act, Public Service Act, and the Retail Trade Liberalization Act.
Dominguez also cited the successful passage of numerous economic reforms such as the CREATE bill and TRAIN law, which reduced personal and corporate income tax rates in the Philippines.
Dominguez states, “Our strong fiscal position allowed us to afford a responsible level of deficit spending to cover our COVID-19 response, while continuing to implement the priority programs under the 2020 national budget.”
Dominguez concluded that the passage of such economic reforms provided the country with enough stamina to address the health and economic crises caused by the pandemic.
On February 9, the GUIDE bill was approved by the House of Representatives on final reading.