National Budget Memorandum No 136

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REPUBLIC OF THE PHILIPPINES

DEPARTMENT OF BUDGET AND MANAGEMENT
GENERAL SOLANO STREET, SAN MIGUEL, MANILA
NATIONAL BUDGET MEMORANDUM No. 136

Date: May 21, 2020
For : All Heads of Departments, Agencies, Bureaus, Offices, Commissions,

State Universities and Colleges, Other Instrumentalities of the
National Government, and all Others Concerned
Subject : BUDGET PRIORITIES FRAMEWORK FOR THE PREPARATION

OF THE FY 2021 AGENCY BUDGET PROPOSALS
1.0 PURPOSE
This FY 2021 National Budget Memorandum aims to provide departments and agencies
with the following:
1 Information on the amount of the FY 2021 fiscal space based on the latest
macroeconomic assumptions and fiscal aggregates approved by the Development
Budget Coordination Committee (DBCC);
1.2 The key strategies and programs/projects which will be prioritized for funding under
the fiscal space given the drastic changes that the COVID-1 9 pandemic has introduced
in both the economic life and societal sphere of the nation; and,
1.3 The specific guidelines in the formulation of the budget proposals which shall be
submitted on or before May 25, 2020.
In view of the limited fiscal space, the entire budget for FY 2021 will need to be reviewed
and reprioritized towards containing the spread and mitigating the effects of the COVID-
19 virus, absent a vaccine; restarting the economy to be able to create jobs and attract
investments; and transitioning to the "new normal" environment post pandemic as outlined
in the National Economic Development Authority (NEDA) Report "We Recover as One 1 ".
The goal is to save lives and protect communities while making the different sectors of the
economy stronger and more agile.
2.0 MACROECONOMIC AND FISCAL ENVIRONMENT OF THE FY 2021 BUDGET
2.1 Macroeconomic Assumptions
The national budget and fiscal aggregates over the medium-term shall be based on
the following macroeconomic assumptions approved by the DBCC on May 12, 2020.
1
Published on the NEDA website (May 21, 2020)
Table 1. Macroeconomic Assumptions, FYs 2020-2022
Actual Projections
Parameter
2019 2020 2021 2022
Real GDP Growth (%)21 6.0 (3.4)- (2.0) 7.1 -8.1 7.0-8.0
Inflation (%) 2.5 1.75 3.75
- 2.0 -4.0 2.0 -4.0
Dubai Crude Oil (US$/bbl) 63.7 23 38
- 35 50
- 35 50
-
FOREX (P/US$) 51.8 50 54

- 50 54
- 50 54
-
Growth of Goods Export (%) 2.7 (4.0) 5.0 5.0

Growth of Goods Import (%) (3.0) (5.5) 8.0 8.0
Assumptions for FY 2020-2022 were adopted by the DBCC on May 12, 2020.
11
at Constant 2018 Prices
21
Source: NEDA, BSP
The Philippine economy grew by 6.0 percent in 2019, lower than 6.3 percent in the
previous year s-arid marginally below the revised DBCC growth target of 6.0 to 6.5
percent in view of slower year-on-year growth for the manufacturing (3.2 percent from
5.1 percent) and construction (7.8 percent from 14.3 percent) sectors, and the
downward trajectory of external trade. The country's growth averaged 6.5 percent in
the first three and a half years of the Duterte Administration.
The DBCC projects the economy to contract by 2.0 to 3.4 percent in 2020 considering
that the potential impact of the pandemic could reach P2.0 trillion or about 9.4 percent
of GDP in view of the two-month Enhanced Community Quarantine (ECQ) imposed
in NCR which accounts for more than 70 percent of the country's economic growth
and the resulting adverse impact on tourism, manufacturing, remittances and exports.
The timely implementation of a well-targeted recovery program alongside efforts of
the private sector starting in the second half of the year will mitigate the impact of the
COVID-19 pandemic. This will help the economy regain confidence, spur economic
activity and restore employment rates to pre-crisis levels. The DBCC thus expects the
economy to recover by 2021 and 2022 with an annual 7-8 percent GDP growth.
Inflation averaged 2.5 percent in 2019, well within the government's target of 2.0-4.0
percent and lower than the 5.2 percent annual rate in 2018. The deceleration can be
attributed to lower food (e.g., rice and corn, sugar items, non-alcoholic beverages)
and non-food (e.g., electricity, gas, and other fuels, transport) indices. However, the
inflation outlook may lean toward the downside for 2020 until 2022 amid the global
slowdown due to the pandemic and as the government implements measures to
mitigate exposure from these adverse developments.
The country's strong balance-of-payments position backed by foreign exchange

inflows from remittances and exports translated to the gradual appreciation in the
peso-dollar exchange rate, which posted at P51.80 /us$ in 2019 from P52.66 /US$
in 2018, amid global volatilities and trade restrictions. However, the state of US
monetary policy, geopolitical tensions abroad, as well as uncertainties from the
COVID-19 pandemic, continue to present external depreciation pressures to the
Philippine peso.
Annual Dubai crude oil prices slipped to 63.56 US$/bbl in 2019 from 69.42 us$/bbl in
2018, influenced by weaker demand for crude oil due to uncertainties in the global
economic environment. The price outlook based on crude oil futures is seen to be
more favorable for the Philippine economy over the medium-term even as demand
picks up after country lockdowns and quarantines are lifted.
External trade will, however, continue to be largely influenced by the economic
prospects of its trading partners. For 2020, the sharp downward adjustment for goods
exports and imports is projected consistent with the global contraction resulting from
the pandemic. For 2021-2022, the growth in goods exports and imports are expected
to bounce back as the global and Philippine economy recovers.
The DBCC's outlook for the country's macroeconomic fundamentals remains optimistic
over the medium-term amid significant reductions in economic activity in FY 2020 due
to the COVID-19 pandemic and the consequent Luzon-wide [CO. Growth prospects
remain hinged to the successful containment of the pandemic and the timely execution
of economic recovery measures.
2.2 National Government Fiscal Environment, FYs 201 9-2022
2.2.1 Fiscal Position, FYs 2019-2022
The National Government's fiscal performance for 2019 ended up strong

despite the delay in the approval of the FY 2019 National Budget and the
election ban 2 . Revenues grew by 10.1 percent year-on-year (YoY) to reach
P3,137.5 billion (16.1 percent of GDP), albeit just 0.4 percent or P12.2 billion
short of the program for the year. Tax revenues were below the program by
P127.6 billion (4.3 percent) due to lower BIR collections from the excise tax on
fuel and sugary drinks, as well as lower BOC collections as a result of peso
appreciation and lower imports. However, this was partially offset by non-tax
revenues which exceeded the program by around P115.4 billion (59.4 percent)
at the back of higher BTr income and dividend collections from government-
owned and-controlled corporations (GOCCs).
Meanwhile, disbursements increased by 11.4 percent YoY to reach P3,797.7

billion, surpassing the program by P28.1 billion or 0.7 percent due to faster
public spending, especially infrastructure and social services in the latter part
of the year. This resulted in a full-year deficit of P660.2 billion or 3.4 percent of
GDP, higher than the 3.2 percent target and 3.1 percent 3 outturn for 2018. The
heavier public spending helped the economy grow by 6.3 percent in 03 and 6.7
percent in 04, from the 5.6 percent average in the first semester, and buoyed
GDP growth to 6.0 percent for the full year of 2019, hitting the low-end of the
growth target The national government debt to GDP also sank further to 39.6
percent by the end of the year.
Over the medium-term, the country's fiscal position is projected to be

significantly hit by eroded tax bases emanating from the Community
Quarantines and travel lockdowns imposed over the entire country starting mid-
March and the non-operation of firms and industries other than those designated
to be essential industries and the payment deferrals and rate reduction
measures implemented to assist the industries, particularly the micro- small-
and- medium sized firms. For January to April, 2020, the tax collections for the
BIR and the BOO were down by 25.4 percent and 7.3 percent year-on-year,
respectively 4 indicating the likely extent of the adverse impact. Hence, for 2020
,
to 2022, revenues are projected to be down to 13.6-13.8 percent of GDP,
2
comelec Resolution No. 10429 provides that release, disbursement or expenditures of public funds' and the
'construction of public works, delivery of materials for public works, and issuance of treasury warrant or similar
devises for a future undertaking chargeable against public funds' are prohibited for the period March 29 to May 12,
2019.
Downward revision from the previous reported level of 3.2% of GDP due to the revised nominal GDP from the
rebasing of the National Accounts from 2000 to 2018
' DOE preliminary data. Retrieved at https://www.dof.ciov.ph/bir-boc-collections-dip-further-in-april-amid-
pandernicl?thclid=IwAR1 GGKB0dTBzVdQEIi7Y59FtiHZ ZQaLìte30Dcywn4fyj8fiM GhsQAl IM
3
significantly lower than the 16.1 percent collected in 2019 and the 16.6-17.0
percent projected for these years in December, 2019.
For 2020, the government will maintain disbursements at P4,175.2 billion (21.7
percent of GDP) in order to provide the additional health care, wage subsidies
and other social safety nets intended to address the COVID-19 emergency
through expenditure reallocation under the Bayanihan to Heal as One Act (R.A.
No. 11469). The emerging deficit for FY 2020 is, thus, projected to reach P1.563
trillion equivalent to 8.1 percent of GDP, larger than the initial program of 5.3
percent of GDP in March 2020 and the original program of 3.2 percent of GDP
in December 2019. The government debt to GDP is projected to amount to 49.8
percent by the end of 2020.
For FY 2021 and 2022, to ensure a credible fiscal consolidation stance, the
DBCC agreed to gradually reduce the deficit as shown in the Table 2 below in
view of the weak revenue collection outlook. The government will remain
prudent in managing public expenditures to ensure long-term fiscal
sustainability. The country's debt profile remains sustainable over the medium-
term with fiscal risk, and debt and liability management strategies in place.
Table 2. Fiscal Aggregates, FYs 201 9-2022

2019 2020 2021 2022
Particulars 1/
Actual Projections
Levels, in billion pesos
Revenues 3,137.5 2,612.6 2,929.0 3,270.7
Disbursements 3,797.7 4,175.2 4,357.5 4,451.5
Fiscal Balance (660.2) (1,562.6) (1,428.6) (1,180.8)
Appropriations 3,661.6 4,100.0 4,335.2 4,414.2
Percent of GDP
Revenues 16.1 13.6 13.7 13.8
Disbursements 19.5 21.7 20.4 18.8
Fiscal Balance (3.4) (8.1) (6.7) (5.0)
Appropriations 18.8 21.3 20.3 18.7
Growth Rate
Revenues 10.1 (16.7) 12.1 11.7
Disbursements 11.4 9.9 4.4 2.2
Fiscal Balance* (18.3) (136.7) 8.6 17.3
Appropriations 3.7 12.0 5.7 1.8
GDP, in billion pesos 19,516.4 19,261.7 21,322.8 23,626.8
Notes:
*
A positive growth rate indicates an improvement in the fiscal balance, while a negative
growth rate implies a deterioration in the fiscal balance.
Sources: DBM, DOE, and NEDA
1/Consistent with the macroeconomic assumptions and fiscal program approved by the DBCC.
2.2.2 Cash-Based Budget Ceiling and Fiscal Space for FY 2021
The issuance of Executive Order No. 91, s. 2019 mandates the adoption of the
Cash Budgeting System (CBS) beginning FY 2019. In order to prepare and
capacitate the various instrumentalities of the government towards the full
implementation of the CBS, transitional arrangements were adopted in FYs
KrAl
4
20191 and 20206 National Budget. This involves extended implementation and
payment, specifically for infrastructure capital outlays, and maintenance
expenditures and other capital outlays, beyond the validity of appropriations.
The FY 2021 National Budget will be the third year of transition towards CBS.
This requires better procurement planning, cash programming, and
collaboration among agencies to ensure the implementation-readiness of
proposed programs, activities, and projects. Hence, the budget proposals of
agencies must be anchored on concrete operational plans and designs that
outline key procurement and implementation milestones, identify specific
beneficiaries, and improve the monitoring of outputs and results, particularly for
the new programs under the "new normal".
Table 3. Derivation of FY 2021 Cash-Based Budget, in billion pesos

2020 1 1 202111 lncrease/(Decrease)
Particulars
Amount I Percent
Total Disbursement Program 4,175.2 4,357.5 182.3 4.4%
% of GDP 21.7% 20.4%
Less: Prior Years' Obligations 286.3 340.8 54.6 19.1%

% of Total Disbursement Program 6.9% 7.8%
Current Year Disbursements 3,889.0 4,016.7 127.7 3.3%

% of GOP 20.2% 18.8%
Add: Obligations to be paid in the 211.0 318.5 107.4 50.9%

succeeding year
Cash Appropriations 4,100.0 4,335.2 235.2 5.7%
% of GDP 21.3% 20.3%
GDP, in billion pesos 19,261.7 21,322.8
1/ Consistent with the macroeconomic assumptions and fiscal program approved by the DBCC.
As shown in Table 3 above, the DBCC-approved total disbursement program

for FY 2021 is set at P4,357.5 billion, higher by 4.4 percent or P182.3 billion
than this year's P4,175.2 billion. Of this amount, some P340.8 7 billion would
have to be set aside for the estimated requirements of prior years' obligations,
comprising largely of FYs 2019 and 2020 obligations that will only be paid in FY
2021. As earlier mentioned, the transitional implementation of the CBS extends
the implementation and payment of some expenditures obligated in FYs 2019
and 2020 until FY 2021.
The total cash-based budget for 2021 is, thus, pegged at P4,335.2 billion 8 ,
higher by 5.7 percent when Compared to this year's P4,100.0 billion budget.
Extended validity of FY 2019 GAA until December31, 2020 pursuant to RA No. 11464. The implementation and
4
payment of infrastructure projects are extended until December 31, 2021, while MODE and other capital outlays
can be implemented and paid until June 30, 2021.
6
Section 60 of the General Provisions of the FY 2020 Budget extends the implementation and payment of
infrastructure projects until December 31, 2021, while MODE and other capital outlays can be implemented and
paid until June 30, 2021.
Estimated using historical proportion of total accounts payables to total disbursements based on Monthly
Disbursement Program submissions of agencies. Includes prior years' accounts payables, and not yet due and
demandable obligations.
8
Includes the estimated P318.5 billion obligations that will be paid in the succeeding year. This is treated as part
of the P4,335.2 billion cash-based budget since implementing agencies (lAs) need to obligate them during the
5
Of the P4335.2 billion budget level, around 40.7 percent or P1,767.3 billion is
earmarked for the cost of ongoing programs and projects in Tier 1 (Forward
Estimates) as show in Annex A. Automatic appropriations and special purpose
funds will account for another P1,726.2 billion or 39.8 percent of the budget.
This leaves a fiscal space of P841.7 billion for expanded and new programs and
projects for Tier 2. Because of this very tight fiscal space, the prioritization of
health care and food production, and the discontinuance of programs no longer
in line with the new normal," Tier 1 budget allocations will need to be reviewed
and reprioritized.
3.0 EXPENDITURE DIRECTIONS FOR FY 2021
As laid out in the NEDA Report "We Recover As One," the banner programs for 2021 shall
be: 1) health systems improvement to strengthen the country's capacity to address the
COVID-19 pandemic, including the purchase of vaccines; 2) food security to ensure that
every Filipino has food on the table; 3) enabling a digital government and economy; and
4) promoting the Balik Probinsya Program. These shall ensure a healthy population, a
more agile workforce, and business resiliency.
As a transition towards the implementation of the Supreme Court decision on the

Mandanas-Garcia petition starting FY 2022, agency programs shall be reviewed, reduced
by at least half in the aggregate, and devolved to the local government units (LGUs) that
are evaluated to have sufficient resources and capacities. In addition, agencies
implementing functions and services for devolution shall include in their budget proposals
the funding requirements for capacitating their agencies and said LGUs to deliver the
devolved services under agency supervision and/or monitoring.
Specifically, the National Government Agencies (NGAs) shall focus on standards

development of service delivery and the provision of technical assistance for LGUs. This
will involve strengthening of their oversight functions, shifting from "rowing" to "steering".
NGAs shall also treat LGUs as partners in development and consider cost-sharing
arrangements in the implementation of local projects. In light of the COVID-19 pandemic,
NGAs may consider response measures that are local in nature but may benefit multiple
LGUs, such as but not limited to biosafety laboratories, foodbanks, trading centers, etc.
This will help foster synergy in the implementation of national and local measures in
response to the pandemic. Consistent with this, NGAs are also enjoined to design
programs that will complement LGU programs instead of duplicating them.
Also, as discussed in the Cabinet, programs under the National Task Force to End Local
Communist Armed Conflict (NTF-ELCAC) shall be supported to deliver needed
interventions in the conflict affected areas.
The Government remains steadfast in achieving the country's Sustainable Development

Goals targets. A Sub-Committee on SDGs under the DBCC was approved during the
DBCC meeting on December 11, 2019. Roles and functions of the said Sub-Committee
include coordination, monitoring and recommendation to the DBCC and NEDA Board,
policies, programs, activities, and projects related to meeting the SDGs consistent with
national development objectives and priorities.
For details of programs under the "new normal", please refer to the attached Part IV of the
NEDA Report.
fiscal year but pay during the first quarter under the Extended Payment Period (EPP), The actual cash requirements
are included in the disbursement program for the next fiscal year.
IJA
4.0 FORMULATING THE TIER 2 PROPOSALS
4.1 Composition of Tier 2 Proposals
The agency proposals under Tier 2 for FY 2021 shall consider the following
expenditure components, with their multi-year requirements shown up to FY 2023:
4.1.1 Proposals for high priority new and expanded P/A/Ps under the new normal
which are implementation-ready, included in the Updated FY 2017-2022 PIP
and FY 2021-2023 TRIP, and with Investment Coordination Committee (ICC)
approval by March 31, 2020. Importance will be given to infrastructure projects
that will promote better health services, ease of transportation and mobility of
essential goods, as well as IT infrastructure that will lead to the establishment
of an ICT-enabled government;
4.1.2 Discontinued P/A/Ps or may no longer be completed in FY 2020 as identified

per NBC No. 580 1 but which may need to be deferred to FY 2021 under the new
normal; and
4.1.3 Essential operations, maintenance, asset replacement and minor capital cost
requirements of projects that are completed by FY 2020.
A list of Tier 2 inclusions by allotment class are detailed in Annex A of

National Budget Memorandum No. 133 - National Budget Call for FY 2021. Agencies
are reminded to tightly prioritize their proposals given that the Budget for FY 2021 can
only increase by 5.7 percent over the 2020 updated Budget Program.
4.2 Formulating Tier 2 Proposals
4.2.1 The foreign exchange rate of P52.00:$1 .00 shall be used for the computation of
the peso equivalent of dollar-denominated requirements for FYs 202 1-2023.
4.2.2 The inflation rate of 3.0 percent shall be used in formulating the MOOE levels
for indexed items or those mandatory expenditure items that are affected by
changes in the prices of commodities. Non-indexed items 1 ° are not subject to
inflation since these are based on contract/rate and those with fixed amount.
4.2.3 With the continuing shift to cash budgeting, the Tier 2 proposals shall be limited
to the P/A/Ps or goods and services that are to be delivered and paid within the
year. Accordingly, the intended appropriations for these proposals shall only
pertain to the cash requirements to be fully disbursed within the fiscal year,
including their impact to the two out-years.
4.2.4 To properly allocate the limited fiscal space, Tier 2 proposals shall be evaluated
based on the following considerations:
4.2.4.1 Available fiscal space set by the DBCC

frtv
National Budget Circular No. 580: Adoption of Economy Measures in the Government Due to the Emergency
Health Situation
10
Non-indexed MOOE items include, but are not limited to: Rents, Professional Services, Subscription Expenses,
Membership Dues and Contributions, Confidential and Intelligence, Extraordinary and Miscellaneous Expense,
Awards and Indemnities, Subsidies and Donations, Taxes and Premiums, Labor and Wages, Rewards and Other
Claims, and Other Expenses based on contract/rate or those with fixed amount.
4.2.4.2 Implementation Readiness
The P/A/Ps to be included in the budget must be implementation-ready,

and to be delivered and executed within the year. Proposals must
include clear, comprehensive, and complete submission of relevant
supporting documents such as:
Feasibility Studies;
Detailed Engineering Designs;
Annual Procurement Plans;
Relocation Action Plans;
Right-of-Way Acquisitions;
Agency Operational Plans;
Agency Sector Roadmaps;
Network Plans;
Inter-agency Clearances and Permits; and,
Proofs of coordination with LGU implementers.
Other necessary information like M&E plans and risk management

plans indicating efforts done to ensure P/A/Ps implementation or
execution are encouraged.
If preparatory works are still required prior to actual execution,

particularly for the new programs and projects, the necessary funding
requirement shall only cover the first phase of implementation.
4.2.4.3 Agency Absorptive Capacity

The agency absorptive capacity as indicated by the recent budget
utilization rates, represent the likelihood that the new allocation can be
utilized by the agency. A low absorptive capacity reflects that the
agency is unlikely to utilize additional funds.
4.2.4.4 Consistency with the Priorities in the BPF

Proposals that address the identified gaps through the strategies
indicated in this BPF and in the accompanying Part IV of NEDA Report
will be prioritized for funding.
4.2.4.5 Indicative Annual Procurement Plan (APP)

An indicative APP shall be prepared alongside the budget proposal to
enable the agency's conduct of the early Procurement process once the
National Expenditure Program (NEP) is submitted to Congress in July
2020.
The Budget Preparation (BP) Forms 202 and 203 issued in NBM No.
133, as well as BP Forms 709 and 710 for GOCCs issued in Corporate
Budget Memorandum No. 42, and other relevant supporting documents
shall be the basis for the evaluation. Hence, clear, comprehensive and
complete submissions are required.
4.2.5 Agencies shall include prioritization of their budget proposals by straight ranking
(i.e., only one P/A/P per rank and without sub ranking).
4.2.6 Submission of Tier 2 proposals shall be done on or before May 25, 2020.
611
4.3 Planning, Investment Planning, and Budgeting Linkage
4.3.1 The government's strategies and policies can be better realized through a
strengthened planning, investment programming and budgeting linkage
between the NGAs and the LGUs. This is to ensure the alignment of the national
and local priorities as embodied in the PDP and the Regional Development
Plans (RDPs).
4.3.2 At the same time, the NGAs are encouraged to strengthen the alignment of their
plans with the plans of other lAs especially those that concern interventions that
affect the same region or locality.
4.3.3 The NGAs through their Agency Regional Offices (AROs) shall undertake
consultations and coordination with the LGUs within the Regional Development
Councils (RDCs) to ensure that the national priorities and the corresponding
budgets are responsive to the regional and local needs. These engagements
within the RDCs also aim to improve the LGU's capacity in the planning,
investment programming, and budgeting process.
4.3.4 The NGAs shall also be encouraged to accomplish and submit their BP Form C
- Summary of RDC Inputs and Recommendations on Agency New and
Expanded Programs and Projects to the DBM for evaluation and prioritization of
proposals under Tier 2.
4.4 Reviewing Entities
Agency proposals shall undergo the review process/es of the following entities before
they are recommended for funding:
4.4.1 The NEDA Board Investment Coordination Committee (ICC) for review of the
project proposals with total project costs of at least P2.5 billion, except as
otherwise provided by law, such as, but not limited to:
4.4.1.1 Projects covered by the Build-Operate-Transfer (BOT) law and its

1RR11 , regardless of amount;
4.4.1.2 Projects which will require National Government borrowing or
guarantee covered by RA No. 4860, as amended, otherwise known as
the Foreign Borrowings Act, and RA No. 8182, as amended, otherwise
known as the Official Development Assistance Act;
4.4.1.3 Projects which will require Presidential or NEDA Board approvals based
on existing laws, rules, and regulations; and,
4.4.1.4 All proposed projects for funding with the Chinese Government,
regardless of amount.
4.4.2 The NEDA Board Committee on Infrastructure (INFRACOM) for review of all
infrastructure projects which shall undergo the Three (3)-Year Rolling
Infrastructure Program (TRIP) process. This is to ensure merit and
implementation readiness when being proposed for budget inclusion.
4.4.3 The Medium-Term Information and Communication Technology Harmonization

Initiative (MITHI) Steering Committee for review of IT and related projects.
4.4.4 The Office of the Presidential Adviser on the Peace Process (OPAPP) for review
of budgetary requirements of the PAMANA Program.
16
11 Section 2.6 of the BOT Law IRR
4.4.5 The NTF-ELCAC for review of P/A/Ps related to implementation of the Whole-
of-Nation Approach-Driven National Peace Framework as embodied in
Executive Order No. 70 s.2018.
4.4.6 Other endorsing entities for review of budget proposals involving specific
concerns as detailed in Section 4.10 of the National Budget Call for FY 2021.
Only proposals that pass the respective review process/es shall be considered for
funding under the FY 2021 Budget.
5.0 For immediate compliance.
Attachment:
Annex A: FY 2021 Tier 1 Budget Ceilings
Annex B: Part IV of We Recover As One" Report
10
FY 2021 CEILINGS ANNEX A
In Thousand Pesos
DEPARTMENT/AGENCY I TOTAL
Congress of the Philippines (CONGRESS) 20997.668

Senate 7.766,381
Senate Electoral Tribunal 300,453
Commission on Appointments 793,296
House of Representatives 11.915.439
House of Representatives Electoral Tribunal 222,099
Office of the President (OP) 5,259,021

The President's Offices 5,259.021
Office of the Vice-President (OVP) 460,952

Office of the Vice-President (OVP) 460.952
Department of Agrarian Reform (DAR) 7,854,142

Office of the Secretary 7.854.142
Department of Agriculture (DA) 42846,974

Office of the Secretary 34,211.886
Agricultural Credit Policy Council 2,572,384
Bureau of Fisheries and Aquatic Resources 4,112,680
Fertilizer and Pesticide Authority 146,803
Philippine Fiber Industry Development Authority 359.333
Philippine Council for Agriculture and Fisheries 195,833
National Meat inspection Service 432,912
Philippine Carabao Center 434.829
Philippine Center (or Post-Harvest Oevetopment and Mechanization 248,522
National Fisheries Research and Development Institute 131,792
Department of Budget and Management (DBM) 1.366,875

Office of the Secretary 1,320,916
Government Procurement Policy Board'Technical Support Office 45.959
Department of Education (DepEd) 475,424,055

National Book Development Board 45,395
National Council for Children's Television - 13,261
National Museum 300,994
Earty Childhood Care and Development Council 56,155
Philippine High School for the Arts 94,401
State Universities and Colleges (SUCs) 54,805,799

Eulogio 'Amang' Rodriguez Institute of Science and Technology 199,560
Marikina Potytechnic College 120,948
Philippine Normal University 677,632
Philippine State College of Aeronautics 145,667
Polylechnic University of the Philippines 1,198,832
Riznl Technological University 322,641
Technological University of the Philippines 587,192
University of the Philippines System 15,545,653
Don Mariano Marcos Memorial State University 766,748
Ilocos Sur Polylechntc State College 185.411
Mariano Marcos State University 565.506
North Luzon Philippines State College 71,775
Pangasinsn Stale University 534,641
University of Northern Philippines 461,090
Abra State Institute of Science and Technology 159,291
Apayao State College 103.052
Benguet State University 579,569
lfugao State University 283,057
Kallnga State UnIversity, 226776
Mountain Province State Universily 207,316
Batanes State College 36.990
Cagayan State University 647579
Isabeta State University 873229
Nueva Vizcaya State University 412403
Ouirino State University 173.495
Aurora Stale College of Technology 102.735
Bataan Peninsula State University 350,974
Ouiacan Agricultural State College 149,756
Butecan State University 630,963
Central Luzon State University 720,537
Don Honorio Ventura Technological Stale University 293,842
Nueva Ecija Unlverstty of Science and Technology 364,837
Pempnnga State Agricuttural UnIversity 247,275
PhilippIne Merchant Marine Academy 199,008
Ramon Magsaysay Technotogical UniversIty 280,671
Tarlac College of Agriculture 236,114
Tartac State University 414,102
Batsngss State University 491.404
Cavite State University 500.583
Laguna State Polytechnic University 385,177
Southern Luzon State University 299,206
Page 1 of 6
In Thousand Pesos
DEPARTMENTIAGENCY I TOTAL
Universky of Rizal System 466.144
Marinduque State College 157,745
Mindoro State College of Agriculture and Technology 178,913
Occidental Mindoro Stale College 230,055
Palawan State University 360,828
Rornblon State Universily 217,216
Western Philippines Universily 230.162
Bicot Universily 860,387
Bicol State College of Applied Sciences and Technology 105.759
Carnarines Node State College 239,982
Carnarines Sur Polytechnic Colleges 190.279
Catanduanes State Unlversily 297,046
Central Bicol Slate University of Agriculture 403,239
Dr. Emilio B. Espinosa, Sr. Memorial Stale College of Agricullure and Technology 118,545
Parlido Slate University 288,414
Sorsogon Stale College 265.026
Alvian State University 312,226
Capiz State Universily 551,592
Carlos C. Hilado Memorial Stale College 295,160
Guimaras State College oi 649
Iloilo State College of Fisheries 239.672
Central Philippines Slate University 158.855
Northern Iloilo Polytechnic State College 311,140
Northern Negros State College of Science and Technology 112,148
University ofAntique 254,122
lloilo Science and Technology UnIversity 521,056
West Visayas State University 1.210.616
Bobol Island State University 297,499
Cebu Normal Universily 218,674
Cebu Technological University 770.022
Negros Oriental State University 391.886
Siquijor State College 77.463
Eastern Sarnar State University 385.519
Eastern Visayss State University 371.559
Leyte Normal University 206,852
Naval State University 167,202
Northwest Samar State University 150.080
Palompon Polytechnic State University 154,475
Samar State University 240.362
Southern Leyte State University 287.646
University of Eastern Philippines 429.639
Visayas State University 695.746
J. N. Cerilles State College 169.505
Jose Rizal Memorial State University 344,321
Western Mindanao Slate University 531,954
Zamboanga City State Polytechnic College 176.133
Zamboanga State College of Marine Sciences and Technology 142,476
Basilan State College 99,806
MSU-Tawi-Tawi College of Technology and Oceanography 568,114
Sulu State College 104,197
Tawi-Tawi Regional Agricultural College 98,024
Bukidnon State University 326,427
Camiguin Polytechnic State College 76.816
Central Mindaneo University 503,479
Mindanao University of Science and Technology 268.082
MSU-lligan Institute of Technology 1,022,220
Misamis Oriental State College of Agriculture and Technology 96,283
Northwestern Mindanao State College of Science and Technology 48.220
Compostela Valley State College 41.286
Davao del Node State College 82,586
Davao Oriental 'Stale College of Science and Technology 146.176
Southern Philippines Agri-Business and Marine and Aquatic School of Technology 100.208
University of Soulheastern Philippines 419.765
Cotnbato State University 133.247
Cotabsto Foundalion College of Science and Technology 170.116
Sultan Kudarat State University 287.360
University of Southern Mlndanao 478,962
Adiong Memorial Polytechnic State College 55.555
Mindaneo State University 3,089,931
Agusan del Sur State College of Agriculture and Technology 122.463
Csraga State University 214,836
Surigao del Sur State University 278,158
Surigao State College of Technology 262,996
Department of energy (DOE) 1,308.447

Page 2 of 6
In Thousand Pesos
Office of the Secretary

Environmental Management Bureau 2,123,318
Mines and Geo-Sciences Bureau 1.253,135
National Mapping and Resource Information Authority 1.167, 374
National Water Resources Board 113,365
Palawan Council for Sustainable Development Staff 90,780
Department of Finance (DOF) 16,267,009

Office of the Secretary 765,119
Bureau of Customs 2,592,248
Bureau of Internal Revenue 7,716. 281
Bureau of Local Government Finance 250,920
Bureau of the Treasury 3,896.205
Central Board of Assessment Appeals 11,944
Insurance Commission 313,456
National Tax Research Center 10,665
Privatization and Management Office 79,880
Securities and Exchange Commission 584,291
Department of Foreign Affairs (DFA) 18,939,232

Foreign Service Institute 65,253
Technical Cooperation Council of the Philippines 3.186
UNESCO National Commission of the Philippines 23,857
Department of Health (DON) 70,026,545

Commission on Population 448,336
National Nutrition Council 364,041
Department of Information and Communications Technology 4,226,114

Office of the Secretary 3.630.679
National Telecommunications Commission 424,845
National Privacy Commission 138,182
Cybercrime Investigation and Coordination Center 31,808
Department of the Interior and Local Government (DILG) 1 94.2 73.162

Bureau of Fire Protection 19,611,051
Bureau of Jail Management and Penology 14,173.270
Local Government Academy 251.402
National Commission on Muslim Filipinos (Office on Muslim Affairs) 539.515
National Police Commission 1,806,369
National Youth Commission 121,541
Philippine Commission on Women (National Commission on the Role of Filipino Women) 101,948
Philippine National Police 151,299,634
Philippine Public Safely College 1,709,096
Department of Justice (DOJ) 20,323,231

Bureau of Corrections 2,806,5 16
Bureau of Immigration 1,227,9 17
Land Registration Authority 1,498,532
National Bureau of Investigation 1,486,078
Office of the Government Corporate Counsel 172,479
Office of the Solicitor General 1,097.119
Parole and Probation Administration 920.883
Presidential Commission on Good Government 142.488
Public Attorneys Office 4,289,393
Department of Labor and Employment (DOLE) 10,719, 94 8

Institute for Labor Studies 43.654
National Conciliation and Mediation Board 239,449
National Labor Relations Commission 1,242,409
National Maritime Polytechnic 105,806
National Wages and Productivity Commission 237,104
Philippine Overseas Employment Administration 435,606
Professional Regulation Commission 1,122, 205
Overseas Wothars Welfare Administration 945.874
Page 3 of 6
FY2021 CEILINGS ANNEX A
In Thousand Pesos
DND-Level Central Adm. & Support 2,472,577

Office of the Secretary - Proper 486.417
Government Arsenal 1,234.983
National Defense College of the Philippines 19.835
Office of Civil oefense 669,341
Philippine Veterans Affairs Office (PVAO) 2.180,819
Philippine Veterans Affairs Office (PVAO) - Proper 563.310
Veterans Memorial Medical Center 1,617.569
Armed Forces of the Philippines 136.586.072
Philippine Army ( Land Forces ) 85.598,656
Philippine Air Force (Air Forces ) 23,708.604
Philippine Navy ( Naval Forces 1 27,278,812
Joint Level Central Adm. & Support 34.502,092
General Headquarters, AFP and AFP-Wide Service Support Units (AFPWSSUS) 34502,092
Department of Public Worlcs and Highways (DPWH) 150,712,559

Office of the Secrelary 150.712559
Department of Science and Technology (DOST) 20,140,201

Advanced Science and Technology Institute 126,837
Food and Nutrition Research Institute 499,799
Forest Products Research and Development Inslitute 192817
industrial Technology Development Institute 385,717
Metals Industry Research and Development Center 217,283
National Academy of Science and Technology 102232
National Research Council of the Philippines 90,232
Philippine Atmospheric. Geophysical and Astronomical Services Administration 1.000.368
Philippine Council for Agriculture. Aquatic and Natural Resources Research and Development 936798
Philippine Council for Health Research and Development 492.918
Philippine Council for Industry. Energy and Emerging Technology Research and Development (PCIEERD) 511,063
Philippine Institute of Volcanology and Seismology 358.243
Philippine Nuclear Research Institute 334.620
Philippine Science High School 2.631,072
Philippine Textile Research Institute 72,377
Science Education Institute 6,894,051
Science and Technology Information Instilule - 91.347
Technology Application and Promotion Institute 132,894
Department of Social Welfare and Development (DSWD) 129.903,940

Council for the Welfare of Children 59,378
Inter-Country Adoption Board 53.722
Juvenile Justice and Welfare Council 94,351
National Anti-Poverty Commission 217,544
National Council on Disability Atfairs 47,901
National Commission on Indigenous Peoples 1,025,260
Presidential Commission for the Urhan Poor 170.599
Department of Tourism DOT) 3,687,907

Intramuros Administration 86.210
National Parks Development Committee 200,549
Department of Trade and Industry (DTI) 11.626.725

Office of the Secretary 4.086,497
Board of investments 360.580
Construction Industry Authority of the Philippines 122,441
Cooperative Development Authority 532,380
Design Center of the Philippines 93,325
Philippine Trade Training Center 53.972
Technical Education and Skills Development Authority 6,377,530
Page 4 of 6
In Thousand Pesos
Department of Transportation 53659538
Office of the Secretary 41804.525
Civil Aeronautics Board 118.939
Maritime Industry Authority (MARINA) 769403
Office of Transportation Cooperatives 33522
Office for Transportation Security 765147
Philippine Coast Guard 10.132.246
Toll Regulatory Board 35,756
National Economic and Development Authority (NEDA) 5,199438

Office of the Director'General 1,297071
Philippine National Volunteer Service Coordinating Agency 32! 148
Public.Privale Partnership Center of the Philippines 181,136
Philippine Statistical Research and Training Inatilute (formerly Statistical Research and Training Center) 54,050
Tariff Commission 80,075
Philippine Statistics Authority 3,554.958
Presidential Communications Operations Office (PCOO) 1,374,956

Presidential Communications Operations Office (Proper( 338,474
Bureau of Broadcast Services 361.526
Bureau of Communications Services 35.468
National Printing Office 11.490
News and Information Bureau 121.083
Philippine Information Agency 305.900
Presidential Broadcast Staff (RTVM) 201.015
Other Executive Offices 57264,477

Anti'Money Laundering Council 20,759
Climate Change Commission 60,854
Commission on Filipinos Overseas 104,885
Commission on Higher Education 48962,237
Commission on the Filipino Language 71.842
Dangerous Drugs Board 231,022
Energy Regulatory Commission 375,681
Film Development Council of the Philippines 183735
Games and Amusement Board 132,362
Covernance Commission for Government.Owned or Controlled Corporations 164,876
Housing and Land Use Regulatory Board 379,272
Housing and Urban Development Coordinating Council 149064
Mindanao Development Authority 157673
Movie and Television Review and Claasifcation Board 98,530
National Commission for Cullure and the Ada'Proper 516,118
National Historical Commission of the Philippines 193,656
National Library of the Philippines 153.384
National Archives of the Philippines 118,555
National Intelligence Coordinating Agency 621,558
National Security Council 190664
Office of the Presidential Adviser on the Peace Process 670601
Optical Media Board 65,656
Pasig River Rehabilitation Commission 119,084
Philippine Drug Enforcement Agency 1,894,141
Philippine Racing Commission 188,709
Philippine Sports Commission 203,147
Presidential Legislative Liaison Office 96,503
Presidential Management Staff 468,288
Philippine Competition Commission 411,177
Joint Legislative-Executive Councils 3,923

Legislative-Executive Development Advisory Council 3.23
The JudicIary 34,096,389

Supreme Court of the Philippines and the Lower Courts 30,483,747
Presidential Electoral Tribunal 134,645
Sandiganbayan 764,181
Courl of Appeals 2,262,668
Court of Tax Appeals 432,948
Civil Service Commission (CSC) 1.729.405

Civil Service Commission 1,640,958
Career Executive Service Board 88,447
Commission on Audit (COA) 12,477,342

Commission on Audit (COA) 12,477,342
Commission on Elections (COMELEC) 13,906,013

Commission on Elections (COMELEC) 13,906,013
Page 5 of 6
FY2021 CEILINGS ANNEX A
In Thousand Pesos
Office of the Ombudsman 2.811,365

011ice of the Ombudsman 2.811,365
Commission on Human Rights (CuR) 814,810

Commission on Human Rights (CHR) 782.593
Human Rights Violations Victim's Memorial Commission 32.217
Budgetary Support to Government Corporations (65CC) 121,744,035

National Dairy Authority 268.908
National Food Authority 7,000,000
National Irrigation Administration 31,458,839
National Tobacco Administration 396,384
Philippine Coconut Authority 1,243,106
Philippine Crop Insurance Corporation 3500000
Philippine Fisheries Development Authority 5,163,975
Phitippine Rice Research Inslitute 621,796
Sugar Regulatory Administration 712,260
National Electrification Administralion 1,162,500
National Power Corporation 1.186,206
Lung Center of the Philippines 323,543
National Kidney and Transplant Institute 899,936
Philippine Children's Medical Center 934,446
Philippine Health Insurance Corporation 57,111,145
Philippine Heal Center 1,416,023
Philippine Inslitute ofTradilional and Alternative Health Care 125.128
Tourism Promotions Board 1,076,939
Aurora Pacific Economic Zone and Freeport Authority 46372
Center for International Trade Expositions and Missions 234319
Small Business Corporation 1,000,000
Light Rail Transit Authority 59,132
Philippine National Railways 715,000
Philippine Institute for Development Studies 85,449
People's Television Network. Inc. 76.227
Authority of the Freeporl Area of Balaan 95,000
Bases Conversion and Development Authority (formerly Bases Conversion Development Authority 2,381,584
Cultural Center of the Philippines 332,298
Development Academy of the Philippines 354513
National Home Mortgage Finance Corporation 500,000
Philippine Center for Economic Development 30,896
Social Housing Finance Corporation 369.203
Southern Philippines Development Authority 18,984
Subic Bay Meiropolilan Authority 502,300
Zamboanga City Special Economic Zone Authority 217,876
Philippine Tax Academy 95,140
BSGC.Olhers 28,606
Allocations to Local Government Units (ALGU) - 3,260,976

Metropolitan Manila Development Authority 3.260,976
Grand Total 1,767,275,302
Page 6 of 6
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INTER-AGENCY TASK FORCE TECHNICAL WORKING GROUP

FOR ANTICIPATORY AND FORWARD PLANNING
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Part IV
Defining the new normal and ways forward
In the days and months after the enhanced community quarantine (ECQ) is lifted, the COVID- 19 threat
will likely remain. We will need to find ways to resume social and economic activities while sustaining
efforts to limit the spread of the virus. In this regard, it is essential to characterize the new nonnal and
identify the appropriate government interventions and policies that will facilitate transition into the new
normal.
In defining the new nonnal, the Inter-Agency Technical Working Group (TWG) for Anticipatory and
Forward Planning (AFP) consulted various government agencies and private organizations and
undertook an online public consultation, which ran from April 4-7 and participated in by 5,583
respondents. The online survey, composed of open-ended questions, was designed to find out how
stakeholders characterize the new nonnal and how they perceive challenges that it will entail. Results
of the consultation indicate that the desired new normal is one that is more resilient and better prepared
for emergencies such as the COVID-19 pandemic. Participants also provided inputs for the possible
realignment of existing policies, programs, and projects, including possible legislative actions needed
to help society adjust to the new normal.
World l-lcalth Organization Director-General Dr. Tedros Adhanom Ghebreyesus, in his opening
remarks at a media briefing on April 13, outlined six criteria that need to be met before restrictions
could be lifted:
I. Transmission is controlled;
Health system capacities are in place to detect, test, isolate, and treat every case and trace every
contact;
Outbreak risks are minimized in special settings like health facilities and nursing homes;
Preventive measures are in place in workplaces, schools, and other places where it's essential
for people to go;
Importation risks can be managed; and
Communities are fully educated, engaged, and empowered to adjust to the "new norm."
In fact, even when restrictions have been lifted, "every country should be implementing a
comprehensive set of measures to slow down transmission and save lives, with the aim of reaching a
steady state of low-level or no transmission." Such is the goal of the transition to the new normal.
Characterizing the new normal
General context
In general, the new normal will be characterized by the need to observe social distance and strict
personal hygiene and other sanitation protocols. There may still be sporadic lockdowns, though over a
smaller geographic unit. At the same time, the COVID- 19 threat looms large in the minds of individuals
- consumers and business alike.
Page 35
This general context has far-reaching implications across the different dimensions: political, economic,
social, technological, legal, and environmental.
The new nonnal is characterized by volatility and uncertainty. Thus, increased attention towards
managing multi-dimensional risks arising from public health emergencies like COVID- 19 is required.
These risks are expected to increase in the coining months when the country becomes most vulnerable
to natural hazards such as typhoons, flooding, and drought, among others.
As frontliners in their respective jurisdictions, the local government units (LGUs) are expected to take
on a greater role in the COVID- 19 pandemic. LGVs bear the responsibility of delivering public services,
including nationally funded programs for health and social safety nets, enforcing the community
quarantine directives, and maintaining the uninterrupted flow of essential personnel, goods, and services
in their localities. Also, recent experience shows that LGUs have different types and amount of
resources, institutional capacity, readiness, and leadership capabilities,' 5 among others. It is likely that
because of these, some have taken control measures to the extreme, even being more restrictive than
the national government. This posturing may continue unless LGUs are assured that help from the
national government will come promptly.
While it has been said that no one is spared from COVID-19, ease fatality rate differs across sectors. At
the sanie time, the imposition of the ECQ has affected families and businesses in different ways. For
certain measures, there is a need for targeted delivery. National and local governments have come to
realize the importance of having a registry containing information on residence, demographic
characteristics, occupation, if in need of special attention, etc. There will then be increased demand for
the acceleration of the Philippine Identification System (PhilSys) implementation.
For purposes of planning, statistics on the socioeconomic characteristics of the population have to be
made available for a barangay or municipality where a targeted lockdown is imposed. There will then
be increased demand for a finer breakdown of official data.
FAWITIRSTUM
Macroeconorny
The global economy is expected to be in recession in 2020 as the COVID-19 pandemic continues to
spread, significantly slowing down and even halting economic activities in certain areas in various
countries. The International Monetary Fund (IMP) estimates that the current crisis will result in
contraction in global economy with a -3.0 percent growth in 2020, assuming that the pandemic
diminishes in the second half of the year and strict containment measures will be subsequently and
gradually lifted.' 6
' Dr La Salle 1/alp 'e,,/ii —Jesse Ru/act/a las/i/pile of Goverspappee. (I A pr/I 2020). Seii/ag lip a Ca,ppa,iap//i' Response Suv/c'fin LG tic:
I'rac/icaI Athice /hr Re-ar/cpu/ag /tc -i.cliig :iwlciPPs pa J)p'pl pr/i/i CO VID. /9 Pal/cu' lit/cf Ialpopw / Lvs,,c I. Sop,rccdfra,i,
Ipups://spapicl.sgp,apr.cpacc.com/spaplc/531111c//h5790aa37c3fip35a///jcMdOd/,/OodI/l/342/ 71426e/15863022397/6.IJRJG+/'alicp+Br/cf+Va/
w,pc+ / +/ssucI-2 gilt 7 April 2020
lAW (14.4pril 2020). JI'rnid Ecap,aa,ic Outlook. April2020: (7/tapier I. ' Accrtcecl v/a aug/i
Ii ppgs:J.1u'ut'w. Oat orelca/J'ublicatiop;s/iYEO/Jysp,cs/2020/04/l 4/pp'ea-ag,-i/-2020.
Pac,e 36
The unprecedented containment efforts taken by governments around the world to stcm the spread of
the virus are expected to have the most significant immediate economic impact' 7 as these hamper both
supply and demand.' 8 In particular, shutdowns have disrupted supply chains, layoffs have lowered
income, and uncertainty has reduced demand.' 9
These global disruptions, together with the travel restrictions imposed at the end of January,
deterioration in business and consumer confidence, and the imposition of the ECQ in Luzon, are
estimated to reduce domestic economic growth to -3.4 to -2.0 percent in 2020. Reduced revenues and
higher spending due to the crisis are expected to raise the budget deficit to at least 5 percent of the gross
domestic product (GDP) in 2020 with a gradual consolidation in the medium tenii.
The deterioration of balance sheets of firms and households may lead to tighter lending standards of
banks. At the same time, rising risk aversion ol' investors may significantly drive out capital, which
leads to tighter liquidity, limiting the amount of available cash and funds for investment. Foreign
portfolio investments have already registered net outflows from the Philippines in the first two months
of 2020, a reversal from net inflows in the same period last year.
Trade is seen to slow down, with traders relying more on online processing of trade documents to
facilitate seamless movement of cargo. The World Trade Organization estimates that world
merchandise trade would fall between 13 percent and 32 percent in 2020 alone. 20 Exports from North
America and Asia are expected to be hardest hit, with trade froin sectors with complex value chains,
such as electronics and automotive products, expected to decline.
Production sectors
Agriculture and Fix/wry
The implementation of ECQ has brought to fore the primordial need for food security that is, food
is available, accessible, and affordable to all, and meets the nutritional requirements of all.
Agri-food supply chain disruptions are expected to persist, particularly in the transport and logistics
system of inputs, machineries and equipment, and fann produce. Movement of people involved in the
transport of such inputs and products, technicians, and extension workers will also be limited. Further,
with the regulated operations of wet markets, supermarkets, and retail food establishments, the
increased reliance on online/digital transactions for food commodities is expected to continue, even in
the post-ECQ scenario.
On the production side, there will be an increased demand for modern agricultural machineries and
equipment in lieu of manual labor, given the need to limit movement of people. Innovative technologies
on processing and packaging need to keep up with the increased demand for processed food with longer
shelf life. This also means that there will be higher demand for raw materials to be used for preserving
food, e.g., salt, sugar, vinegar.
/ !i'orld Bank. frI ,n-il 2020,?. Last Asia and Pacific Economic 1/pc/ate April 2020. Accessed tli'vugh
lntps://wn'w. wo,Idbank. or g/co/regiou/caa./nublko tion /cast_asia _pacijc_ ecano ,njc_ updaie.
° A sian Derelopa,ent lJa,,k. (April 2020) 'Asia,, Dc rclopment Outlook 2020: V/tat l),ire.s Innovafion in A s/a? ' A cces.cc'd I/ira ag/i
bnps:/Iwww. adh. org/sitcthlclaidc/lilcs/pi,blicatio,,/5 756261aclo2 02 0, pt/li
I/dPi (14 April 2020), "iVo,'/d Econoa,ic Out/oak. itpil 2020: Chapter I. " Acce.cwed throng/i
Ii t/tfl JAi',i'w, i,,,r otv/en/P,b/icy,liansfl VEO/l.csacs/2020/0411 4A,'eo -anril-2020.
FY70. (8 April 2020). Trade sei to plunge as COVID- 19 j'ande,nic ciends global eco,,oa,m' Accessed I/flYing/i
l,llos:/In'u'n', ito orr'/cnelis/,/oc'c,'s c1a,'es20 c/ott55 e. /'loi
Paqe 37
The pandemic will also cause a shift in consumer preferences for healthier diets, which will increase
demand for safe and nutritious food. Consumers are now more health-conscious and selective of the
food they eat, preferring to eat fruits and vegetables to boost their immune system against diseases.
The expected reduction in tourism and dine-in services will result in reduced demand for agricultural
food items from these establishments. The most affected commodities are expected to be the income-
elastic food, like meat and high-value cash crops. On the other hand, there may be higher demand for
agro-industrial products like rubber (for making gloves and personal protective equipment), fiber (for
making masks, etc.), and raw materials for soap and disinlectants.
Industry and Services
The major economic impact of the COVID-19 pandemic is the temporary suspension of production
activities for both goods and services. NEDA's initial estimates show that the economy may register a
decline as many businesses have stopped operations and find it difficult to cope with the losses.
As the country navigates through the lingering effects of the pandemic, there is a heightened risk of
financial insolvency for firms particularly those that have incurred mounting debt, those with large
overhead costs, and those with limited or no insurance coverage against losses. In the near tenn, there
will be increased demand among companies, especially from the micro, small, and medium enterprises
(MSMEs), for economic assistance such as tax breaks, access to credit subsidies, debt relief, and
employment subsidy support, among others.
In the manufacturing sector, production of merchandise goods will fimvor essential goods particularly
food, medicine, medical and pharmaceutical products, and other essential goods mostly related to efforts
to contain the outbreak. Equally important is for the manufacture of intermediate inputs and raw
materials for essential goods to remain unhampered (e.g., plastic and plastic products, rubber products,
chemical products, etc.). Construction will have to focus on building quarantine and other health
facilities, and rehabilitating existing ones to increase the capacity of the health care system. There may
even be increased cons(ruction demand in the rural areas, as urban dwellers realize the advantages of
less dense areas.
In many service-oriented organizations in the private and public sector, flexible-work arrangements
(e.g., work from home) will have to be implemented in accordance with strict social distancing
protocols. In many instances, part of the new nornml means working and interacting virtually instead
of face-to-face. Workspaces (e.g., factories and office spaces) will need to be re-configured to address
the need for physical distancing.
Work protocols in the manufacturing sector will also need to be reconfigured to comply with social
distancing. This will mean a mix of staggered work hours and greater dispersion of workspaces.
Sit-down eateries may need to shift to take-out menus. And those that anchor their business model on
the ambience of their place will need to re-package their service. The same goes for tourism
establishments.
Hygiene protocols will be expected in all establishments, such as the presence of disinfection areas and
disinfectants within easy access of everyone. l-Iealth checks and temperature scanning will remain the
norm. These will mean higher cost of doing business in the near term.
E-commerce will play a big role in the new normal scenario as businesses and consumers increase the
use of online transactions, including the expanded use of cashless payment system and other financial
Pacme 38
technology platforms. This bodes well for the retail and other business activities sectors, including
information technology and business process management (lT-I31 3 M).
In the transport sector, reduced load factor accompanied by stringent sanitary protocols in all modes of
public transportation will be part of the new normal. Travel restrictions will likely continue for the time
being, as demand for tourism and travels, in general, will be relatively low.
The reconfiguration of many establishments in the industry and services sectors will result in a number
of displaced workers, including overseas Filipino workers (OFWs) who have been repatriated or are
expected to be repatriated in view of the lower global demand. As of April 12, the number of repatriated
OFWs due to the pandemic stood at 11,892.
Social activities will remain limited by the need to practice physical distancing. Wearing of masks and
bringing of hand sanitizers and alcohol will be the norm. Frequent washing of hands will continue to be
promoted.
Mass gatherings will continue to be restricted or discouraged and areas that become easily crowded will
be strictly monitored. Church services will have to be conducted online or broadcast through television,
as before. The Meetings, Innovations, Convention, and Exhibition sector will bear the brunt of this
nonu. This will also be the case for most entertainment activities - cinemas, concerts, sports, etc. Note
that some of these venues have already been converted into quarantine or treatment facilities.
Schools will likely remain closed, with the reopening date very uncertain. In any ease, most students in
elementary and high school are still on vacation. When school does reopen, class sizes will have to be
dramatically reduced. The education sector will then need to reconfigure its mode of delivery or the
curriculum itself so that less time will be spent in the physical classroom, l'here will also be clamor for
more virtual classes.
Some families have been affected worse than others. There have been hundreds who lost their loved
ones to COVID-19. Some of the deceased may have been the breadwinners in their families. Some
families were not even able to observe usual funeral practices because patients who died are
immediately cremated. The anxiety and feeling of uncer ainty caused by the pandemic may also increase
the demand for mental health care not just among those who lost their loved ones, but also among those
who lost their jobs.
Most definitely, there will be increased demand for health services. Even after the COVID-1 9 is placed
under control, health-seeking behavior of Filipinos is expected to improve. This increased demand also
implies increased demand for health workers. l-lowcver, global demand for health workers is also
expected to increase, especially over the short term.
For COVID- 19 response, the health system's definition covers facilities and/or capabilities to "detect,
test, isolate, and treat every case and trace every contact." This pertains to health surveillance protocols,
testing kits and facilities, quarantine and isolation facilities, hospital beds, and contact tracing protocols.
All these require equipment, supplies and materials, and especially, trained personnel.
Pane 39
Technology
There will be increased interest in using advances in medical science in the new normal. Just like the
development of COVID-l9 testing kits by local scientists, there will be greater efforts to find ways to
manage pandemic situations (i.e., ways by which mass testing can be facilitated, design and
manufacture of medical equipment that can aid in the treatment of patients such as ventilators, among
others). Moreover, demand for health-related technologies (i.e., sanitation booths, contact-tracing
applications, and other researches related to the treatment or response to the pandemic) will increase.
With companies, schools, and government agencies implementing work from home arrangements, the
use of digital technology will increase significantly. In addition, business transactions such as online
retail, online banking, online medical consultations, and digital payments, will increasingly become a
necessity rather than for convenience. All these need to be supported by a reliable digital infrastructure
system with strong cyhersecurity protection.
For the production sector, there will be increased demand for automation to complement manual labor
in the immediate term. Over the medium term, automated processes may substitute for labor.
Environment
In the new normal, the interrelationship between public health and the environment will he given greater
emphasis and importance. Some researches have found a correlation between exposure to air pollution
and COVID-19 mortality. 2 ' While these findings will probably need to be validated across various
settings, it does seem plausible that low air quality would be associated with a high rate of respiratory
mortality; other studies show the channel to he via the higher incidence of chronic diseases (the so-
called co-morbidities like hypertension, diabetes, cardiovascular disease, among others).
Meanwhile, the ECQ has decongested roads, which resulted in relatively better air quality particularly
in cities, compared to before ECQ. However, air quality may deteriorate post-ECQ, as social distancing
becomes the new normal, since people may opt to use their own vehicles to avoid the inevitable physical
contact in public transport such as jeepneys, buses, and trains. Moreover, more jeepneys and buses may
need to be deployed to ferry the passengers at reduced factor loading.
As more people will practice handwashing and sanitation in households, workplace, and public places,
higher demand for water is inevitable. Another adverse environmental effect is the increase in volume
of infectious waste materials (e.g., disposable masks) from households and in the number of health care
facilities due to the rising number of COVID- 19 patients. Solid wastes from packaging materials will
also increase due to the surge in delivery of food and other essential supplies.
On the positive side, there will be greater interest in urban agriculture, given the importance of ensuring
steady food supply. The use of idle urban spaces for urban agriculture, backyard/household gardening
of edibles, and community fanuing will increase. Further, localizing the source of produce in urban
areas will also help cut down fossil fuel consumption necessary to transport, package, and sell food.
Considenng the foregoing, the pandemic is expected to spark positive behavioral effects on people,
especially on the need to conserve finite natural resources and safeguard the quality of environment and
public health.
21 Sec, for cx wnpic: "/?xpnsl//r to air pollution and CO l'ID- /9 ,,,o,ta/i!r in the United Suites Xiuo Wi,, Rae/ic! C Nellie,,% lienjainin U.
Sal,at/i Da,,ielle B,ynin. Francesca Dorninict ,nedl&i, 2020.04.05.20054502: c/ui litq s://doi. org//U. 1/01/2020. 04.05.2(1054502 and
Assessing nioogea dio.vide (NO2) Ic, c/s as a can irilniti,,g Inc/a, to corona juts (COY/I)- /9) fatality. Yawn 0gw ... cience of i/ic Thial
F,, ,U,nmenl 726(2020) 38605: /,itps://cloi, org/i 0. 1016ff. scab/en it 2020. 138601
Paco 40
Legal
The /Javanihwi to Heal as One Act is a temporary measure and effective only for three months.
Meanwhile, the following laws already exist: the Mandatory Reporting of Notifiable Diseases and
Health Events of Public Concern Act to address concerns on health, health care workers, and supplies
(Republic Act No. 11332); the Price Act (RA 7581 as amended by RA 10623) and the Universally
Accessible Cheaper and Quality Medicines Act (RA 9502) on availability of goods and services; the
Government Procurement Reform Act (RA 9184) and Government Procurement Policy l3oard
Resolution No. 03-2020 on government procurement during a state of public health emergency; and the
Local Government Code (RA 7160) on coordination between national government and LGUs. 22 These
will need to be reviewed as to whether they provide sufficient latitude for the President to implement
the needed interventions.
The scale and severity of the pandemic has also justified the government's restriction of some of our
fundamental freedoms, particularly of movement and of expression. Thus, in crafting and implementing
government responses to this public health threat, careful attention must be given in ensuring that our
fundamental human rights are continuously upheld.
As the new normal contemplates increased reliance on technology in people's everyday lives, it begs
the question: "How much of our privacy are we willing to give up in the interest of public health?" The
situation necessitates strikihg a balance between data privacy and public health. Furthermore, with the
more widespread use of big data analytics, we will likewise see the rise of data security and data
discrimination concerns. 13 The Data Privacy Act of 2012 (LA 10173) needs to be assessed ifit is enough
to address these valid concerns. Equally important is an assessment on the government's ability to
protect the people, businesses, and the government itself against cyber-at(ack and eybercrime.
The legal implications arising from the pandemic also include the treatment of supply contracts affected
by supply chain disruption; insurance coverage of epidemic-related damage to business and property;
and employment arrangements.
In addition, laws on stockpiling of critical materials, which include medicines and devices for life-
saving care, will have to be revisited.
Transition to the new normal and ways forward

The new normal, as described above, will also affect the public sector, including macroeconomic and
fiscal indicators. It is then important to identify the crucial policies and strategies to address the new set
of challenges and facilitate the transition to the new normal.
22
!Jni,c,cv ia of the /'/u/ippities. (2020). Ref keit ons 0:11/ic llaimi,Iirni Ac? or Rep,,hlic Ad No. 11469 ('the Act ) ivit/i inn/it, of
pi'cseii/oriona/ pa ,re,'s under es/sling (nit's /0 'lice! eincrge?icies. ,ncIiuluig (lie CO V/I) - /9 cr/s/s. Re/dc, 'ed/dim: /,ttps:J//a,i', opt1 edit, 01,A,7-
con(enl/nplo/u1s12020/(/3/Reffec/io,,s-on-(/, e-Rarandin,i-A ci- 3OMa,r1i2020, pill
1ai'ic 13e,'na,y/. (15 June 2017). "3 mass/ic big data jun/i/ems e i'errone c/maid kno., a/,out. " Reo'ie vedj'i'oni
/iups://,c',i',i'. lb i/irs. co,n/s//cs/bcrna,'d,nnn/20/ 7/06/1 5/3-mass/i 'e-biy-data-prn blc,ns-crer,'onc-s/ioit/d-k,,o c'-about/l/4c 709cb86 / 86
Pact!) 41
Economic development
Macroeconorny
Fiscal Sector
High deficit in 2020 and 2021. The projected decline in government revenues amid muted economic
activities, together with increased government spending on COV ID- 19 response and mitigating
measures, is expected to put pressure on the country's fiscal position in 2020 and 2021.
Priority Policies and Stralegies
Realign expenditure priorities in 2020 and 2021. National government agencies (NGAs) will have to
realign expenditure priorities to facilitate the transition and adjustment to the "new normal.' For 2021,
the list of Build Build Build projects can be revisited to give priority to crucial and shovel-ready
projects, to provide more space for relevant health-related expenditures and to improve the digital
infrastructure.
Anticipate potential realization of contingent liabilities. Given the persistence of uncertainty in

global and domestic conditions, it is prudent to provide ample allowance for potential realization of
contingent liabilities, or the potential loss that may be incurred in the future depending on the outcome
of a specific event, in this ease, the COV1D-19 pandemic.
Explore all multilateral and market financing options. The national government will explore various
options, including those from multilateral institutions (e.g., World Bank, Asian Development Bank).
The Bureau of the Treasury also plans to tap the local market through local bonds issuance and the
offshore commercial markets through issuance of dollar-denominated debt papers. "panda" bonds, and
"samurai" bonds. Increased risk aversion of investors, however, can lead to an increase in borrowing
costs.
Communicate the recovery plan. To manage market expectations and ensure stability, the national
government needs to carefully and clearly communicate its recovery plan, as well as the temporary
nature of the deviation from the medium-term fiscal program.
Promote co-financing between the national government (NC) and local government units (LCUs)
for development programs. The government needs to explore cost-sharing schemes between the NG
and LGUs for response measures that are local in nature but may benefit multiple LGUs (e.g., setting
up of local biosafety laboratories, foodbanks, and trading centers). These can facilitate synergy in the
implementation of national and local measures.
Establish digital taxation framework. With the expected shift of the private sector to online
transactions, the government needs to establish a digital taxation framework. There is also a need to
invest in digital taxation infrastructure.
Monetary and Fin an cia! Sector
Tightening in domestic liquidity. The deterioration of balance sheets of firms and households may
lead to tighter lending standards of banks. At the same time, rising risk aversion of investors may cause
an elevated outflow of capital, leading to tighter liquidity.
Paqe 42
Possibly higher non-performing loans in the banking sector. Given the losses during the ECQ, as
well as subdued demand even post-LCQ, some businesscs may not be able to fulfill their loan
obligations. Rising unemployment may likewise lead to defaults in consumer loans.
Possibility of defaults on coupon payment and deterioration of capital for regulated entities.
Deterioration in the financial positions of bond-issuing firms may lead to defaults on coupon payments
and principal. Decline in value of financial assets and real property, on top of operational losses may
lead to the deterioration of capital of firms, including banks and insurance companies.
Increased demand for doing online banking and other financial transactions. As economic
transactions shift to online platforms, the demand for online payment, savings, investment, and other
financial services will rise as well.
Increased demand for insurance products. A surge in demand for insurance products and claims
could be expected with the increase in infections and fatalities caused by the pandemic.
Priority Policies and Strategies
Adopt an accommodative monetary stance. With the balance of inflation risks tilted to the downside,
monetary authorities have room to further reduce policy rates and/or reserve requirements.
Encourage banks to use capital and liquidity buffers. The government needs to continue to grant
regulatory relief measures to banks even after the pandemic. These include using capital and liquidity
buffers to provide financial relief to distressed borrowers and providing reasonable time to restore
buffers. It should also consider extending the validity of the liangka Sen/ia! ng Pilipinas Memorandum
No. 2020.008, which allows banks to book allowance for credit losses on a staggered basis for a
maximum of five years.
Conduct stress-testing and improve the liquidity risk management practices of regulated entities.
Stress-testing of financial institutions will help identify those that are vulnerable to possible losses amid
the COVID- 19 outbreak. It is also important to continually improve liquidity risk management practices
of regulated entities, particularly insurance companies, to keep abreast of the liquidity implications of
the changing environment.
Disclose possibility of delay in payments and contracts with cross-default provisions by issuers of
corporate bonds. Measures to increase transparency in the capital markets will help boost investor
confidence. This includes the timely disclosure of delayed payments to bond holders and contracts with
cross-default provisions.
Strengthen infrastructure for and regulation of online financial services. Given the increased
demand for online financial services, the relevant infrastructure and regulatory oversight need to be
strengthened, including closer monitoring of cybersecurity plans. Transaction costs and limits for
electronic fund transfers need to be eased for a longer period. The EGov Pay Facility may be expanded
to enable ordinary citizens to securely transact with government online. Government transfers can be
facilitated through the use of c-money. The adoption of national quick response (QR) code this year is
also expected to enhance interoperability of payment systems. 24
Strengthen financial inclusion by leveraging on financial technology. Mobile banking and payment
services of banks and emerging financial technology companies can be utilized to widen the reach of
financial services in the country. The implementation of the National ID System can also help lessen
:41)
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h ((p.//'. bspgo, ,/i/p,, /sI,co(io,,s/,,ictho. osp?h/.5 / 82
Paoo 43
the burden of tedious account opening requirements, allowing for the people's easier access to the
financial system.
Strengthen information and education campaign on insurance policies. Improved insurance literacy
will help protect consumers from loss and uncertainty. The Insurance Commission must closely monitor
insuranec premiums to guard against unreasonable increases. Passage of the Financial Consumer
Protection Bill will provide the regulatory framework to protect the interest of financial consumers and
reinforce confidence in financial markets.
Proposed Legislative Actions
• Enact a law similar to the Special Purpose Vehicle ISPV] Act of 2002 (RA 9182), which grants
tax exemptions and fee privileges to SPVs that acquire or invest in non-perfbrming assets of
banks.
• Enact a law addressing existing gaps vis-à-vis the "Key Attributes for Efibetive Resolution
Regime" of the Financial Stability Board. 25
• Revisit the Data Privacy Act of 2012 (RA 10173) to strengthen safeguards to avoid data privacy
breaches.
• Revisit the Electronic Commerce Act of 2000 (RA 8792) to make the law more comprehensive
in detailing transactions within its purview, specifying the rights of consumers, strengthening
the penalties imposed on service providers, and imposing obligations on service provider to
ensure that their data processing and money handling are transparent and safeguarded from
possible breaches.
• Enact a Financial Consumer Protection Law.
External Sector
Overall contraction in global trade. The pandemic, while largely a health issue, has also significantly
disrupted world trade. The World Trade Organization estimated that world merchandise trade would
fall between 13 percent and 32 percent in 2020 alone. 26 Exports from North America and Asia are
expected to be hardest hit, with the trade from sectors with complex value chains, such as electronics
and automotive products, expected to fall steeper.
Increased volatility of capital flows. Higher risk aversion against developing countries has led to
capital flight in these economies as investors flock to safe havens. Foreign portfolio investments have
registered net outflows from the Philippines in the first two months 2020, a reversal from net inflows
in the same period last year. Moving forward, massive monetary stimuli, particularly in major advanced
economies, could result in sudden capital inflows.
Fast-track the implementation of TracleNct. TradeNet needs to be swiftly implemented to help

reduce the cost of engaging in trade and thcilitate movement of cargo through online processing and
inter-agency certification that ensures the authenticity of digital documents. The system can also be
linked to online payment systems to ease payment procedures for trade documents.
Establish crisis communication management system among exporters, importers, and the
government to ensure seamless movement of cargoes. The initial confusion related to exemptions on
movement of cargo during the ECQ highlighted the need for the establishment of a crisis
25
lmw,c,ol Sfr,bi/i(, Bawd (15 Qc(o/,cr 20 / 4) Report on Xe, A I/nba/es o/E/Jècli,'e Resolu/iw, Regimes fbr lma,,cwl /ns/iI,,Fions.
Re/rim rd from li//yr//un' n/sb orelnv-co,,/e,,/hwloacls/r 141015. pill
vat/cl Trade Organi:auoo. (8 April 2020). ...ode srI Ia plunge as co v/n-i 9 ponde",tc ,tpenils global eeot,o,ti, ' Aecessed th/TfltglI
I, Itps:/Ain'w. nb. o,-g/engl,sI,/uews c/pres20 e/prXSi e. li/n,
Facto 44
communication management system that will specify the protocols and procedures in critical or
emergency situations. A registry or database of importers and traders needs to be developed for the easy
issuance of permits and passes. It will be useful for the national government, LGUs, and the private
sector to have an integrated website that tracks real-time infonnation on cargo release, availability of
supply, production, and inventory.
Revive discussions in regional forums on the possibility of developing regional stockpiling of

essential goods. Rather than working in harmful silos, countries will be more effective in crisis response
through regional cooperation. This can start with developing regional stockpiling of essential goods.
Likewise, formulating and operationalizing a logistics trade now for the movement of essential items
within the ASEAN region to reduce the country's vulnerability to supply constraint may be considered.
Scale up and diversify products to minimize vulnerability and take advantage of opportunities
for shift in business processes and consumer preferences. While demand is likely to go down for
major export products (due to changes in consumer preference in partner countries, reduction in
production activities, or constraints in customs operations), the possible shift to or focus on electronic
products and equipment provides an opportunity for the country to be part of the value chain for
production of robots or installation of Artificial Intelligence in various systems. There is also a window
of opportunity for exports ofmedical equipment, supplies, testing kits, and other medical related articles
as the demand for these products is unlikely to go down until a vaccine is found and mass produced.
Strictly enforce phytosanitary protocols to ensure that regulated and prohibited cargoes will not
be able to enter the country. To ensurc that our territory reniains safe against trade of wildlife species
that may be host to various diseases, there maybe a need to issue appropriate administrative orders that
would reiterate strict compliance with established rules, and impose higher penalties for any violation.
Relevant agencies need to invest in detection equipment and hiring of properly trained quarantine
personnel to strengthen their capability to monitor prohibited and regulated articles, These measures
will help expedite the processing of sanitary and phytosanitary certificates for faster release of goods at
ports.
Maintain adequate foreign exchange reserves and a market-determined exchange rate. To cushion
the impact of sharp peso movements, monetary authorities will maintain a healthy level of foreign
exchange reserves as a buffer; review and adjust macro-prudential measures; and use liquidity
enhancing and management tools such as the US dollar rep facility, exporter's dollar and yen
rediscounting facilities, and the enhanced Currency Rate Risk Protection Program.
• Amendment of the Philippine Economic Zone Authority Act (RA 8748) and other related laws
on the establishment of export zones.
• Possible amendment of the Customs Modernization and Tariff Act (RA 10863) to allow for
expeditious process of tariff modification in times of crisis to augment local supply.
Production sectors
Agriculture and Fishery Sector
The new normal for the agriculture and fishery (A&F) sector calls for a heightened policy focus on food
security. More efforts are required to ensure availability, accessibility, and affordability of safe and
nutritious food. As it is, the capability of local producers to supply the needs of the market is already
Page 45
limited by the low productivity of the A&F sector, the inclTicientlogistics systems, inadequate support
services, and low levels of farm mechanization. Restrictions on sub-national, cross-border access, and
trade are expected to cause frequent disruptions on agri-food supply chains. These restrictions hamper
the movement of inputs, machineries and equipment, farm produce, and the people involved in the
transport of such inputs and products, technicians and extension workers, farmworkers, and laborers.
On the demand side, the challenges will dwell more on meeting the rising demand for safe and nutritious
food caused by the shift in consumer preference for healthier diets.
Policy actions and strategies for 2020 to 2021 must focus on nddrcssing supply chain disruptions and
improving the productivity of the sector to meet the demand of the populace.
Ensure unhampered movement of A&F goods and services through efficient transport and
logistics systems. This would involve the construction of better road and transport infrastructure, as
well as sufficient and strategically located facilities such as wholesale food terminals and trading
centers, warehouses, cold storage and refrigeration facilities, mobile storage, mobile marketplaces,
rolling stores, and foodbanks. To establish such facilities, various modalities will be adopted (e.g.,
government-led, public-private partnership [PPP joint ventures, etc.) involving national government
agencies, LGUs, and the private sector, consistent with the whole-of-society approach.
Intensify provision of support services and farm machineries and equipment. The government will
have to increase its subsidy, assistance, and support services for farmers, fisherfolk, and enterprises in
the fonn of inputs, credit and insurance, and capacity building. More farm machineries and equipment
will need to be provided in lieu of manual labor, given the need to limit movement of people and
sustained practice of social distancing even after the lifting of the enhanced community quarantine.
Machine pooling and custom hiring will be encouraged to meet the increased demand for mechanized
farm operations.
Strengthen online marketing of agricultural produce. Supermarkets and retail food establishments
will have to be encouraged to establish online or digital channels for transactions and delivery services.
In areas where food and groceries delivery are not available, an online service delivery system, where
buyers send a list of items to buy to a paN/i service provider, may he explored as an option. In parallel
to this, a registry system of online sellers or deliveries may be established to monitor and regulate the
movement of people engaged in such transactions. Investments in ICT infrastructure will also have to
be boosted to meet the surge of online transactions and the consumers' expectations for reliable digital
connectivity.
Ensure safety of food and agricultural products supplied in the market. Changes in consumer
preferences such as the increased demand for sale and nutritious food would require strict enforcement
of food safety laws, regulations, standards, and sanitation protocols. The DA, in coordination with
LGUs, will take the lead in ensuring the regular sanitation of wet markets, slaughterhouses, dressing
plants, warehouses, trading centers, fish ports or fish landing centers, and other related establishments.
In support of such interventions, the processes of the Food and Drug Administration (FDA) on
certification and roll out of developed technologies and products will be streamlined. Also, information,
education, and communication (IEC) campaigns on food safety measures and healthy dietary habits
must be intensified.
Intensify research and development (R&l)) for agriculture. The government needs to intensify
support for public research institutions and state universities and colleges on R&D programs that will
make safe, nutritious, medicinal or therapeutic, and well-packaged agri-food products commercially
Pane 46
viable. DA, DOS1', and DTI can explore partnerships and joint projects for the development of agri-
food processed products with improved nutritional content and longer shelf life.
Promote adoption of urban agriculture, backyard/household gardening of edibles, and

community farming. Vacant urban spaces can be utilized for gardening/fanning. Households may be
encouraged to establish backyard 'edibleS gardens. Community farming may be promoted especially in
schools. tnter-agency collaboration and streamlined processes will be needed for more efficient
assistance to investors pursuing urban agriculture, particularly those utilizing hydroponics and
aeroponics.
• Address regulatory issues to enable the national and local governments to purchase produce from
local farmers or producers for relief and school feeding programs.
• Establish a legal framework to govern a consolidated management of land for agricultural purposes.
• Impose a progressive idle land tax to ensure that lands are put to use, even if temporary, but without
prcjudice to rights of owners to security of tenure.
Industry
Under the new normal scenario, the challenge for the manufacturing sector is redirecting production to
increase supplyof essential goods and intermediate inputs. This would include, forexample, (a) wearing
apparel for medical gowns and masks; (b) chemical products for drugs and medicines, disinfectants like
alcohol, soaps, cleaning agents, as well as fertilizers; (c) metal fabrication and wood products for
hospital beds, construction materials for quarantine fhcilities, and canning for food production; and (d)
paper, rubber, and plastic products for gloves, medical paraphernalia, packaging for food, and materials
for temporary quarantine or isolation facilities. Thcre will also be an increasing need for non-essential
but complementary goods such as electrical machinery (wires and wirings, batteries, and lighting
fixtures) for health-related facilities and other equipment. Non-electrical machinery will also be needed
to support fann mechanization.
In the power and energy sector, part of the challenge under the new normal will be the delays in the on-
going infrastructure projects due to restricted niovement of people and availability of imported parts
and equipment. While current power infrastructure projects are additions to future energy capacity and
hence, will have limited impact on current energy supply, possible power interruption may happen if
maintenance work and rehabilitation are also affected. The Department of Energy (DOE) needs to
ensure the steady and continuous supply of power. Uninteriupted power supply is necessary to ensure
continuous production of essential goods and efficient operation of hospitals, laboratories, and other
medical ihcilities. Meanwhile, the current trend of declining petroleum prices is a positive development
at this time as cost of energy production is low.
Construction and rehabilitation of health-related facilities such as hospitals, testing laboratories, and
quarantine facilities in LGUs will also pose a challenge. Moving forward, the new normal will prompt
the redesign of public construction projects like school buildings, public markets, office buildings, and
socialized housing projects.
Establish a registry of firms that are or will be engaged in the manufacture of essential goods
Page 47
Adopt and implement, in coordination with industry groups, guidelines for businesses that will
be allowed to operate, taking into consideration the DOl-l's minimum public health standards for
COVID-19 mitigation.
Include activities in the Investment Priorities Plan that are critical for the supply of essential
goods and construction and rehabilitation of health facilities, and explore the possible granting of
incentives such as tax breaks, as necessary.
Consider the temporary suspension of the export percentage requirements of export processing
zones locators to allow export-oriented firms to sell "strategic" products to the domestic market to
augment local demand.
Conduct an inventory, For possible scale-up, of the existing DOST-approved manufacturing

technologies for prolonging food shelf-life. These include ongoing applied science researches on
possible alternative materials for personal protective equipment (PPEs). Shared service facilities and
Regional Inclusive Innovation Centers may also be utilized by MSME manufacturers.
Adopt digital technologies in the construction sector, particularly modular designs and structural
specifications that can be replicated across the country.
Provide incentives to construction companies that will prioritize building isolation or temporary
hospitals for suspected and probable cases of COVID-19. Tax breaks may be provided to compliant
companies.
Allow movement of essential "energy personnel" to facilitate the maintenance, repair, rehabilitation,
and the resumption of any interrupted construction, installation, or commissioning of infrastructure
relative to the generation, transmission, and distribution of electricity; as necessary, following strict
social distancing protocols.
Strictly enforce existing policies on the processing of permits relative to the development of energy
projects (e.g., Executive Oder [EOj No. 30, Energy Virtual One-Stop Shop Act] to minimize and
mitigate further delays in the completion of said activities.
Encourage the importation of petroleum products to ensure ample supply, against the backdrop of
declining world oil prices.
• Amend the General Policies of the Investment Priorities Plan to support registered projects
(Article 1174 of the Civil Code of the Philippines) to include activities critical for the supply
of essential goods, construction, and/or rehabilitation of health-related facilities.
• Amend the Foreign Investments Act (RA 7042) to attract investments in manufacturing of
essential goods.
Micro, s,nal!, and inediuni enterprises (MSMEs)
MSMEs, which comprise the majority of businesses operating in the country are also among the most
affected by the COVID-19 crisis. Cash flow constraints resulting in increased debt, difficulty in
covering overhead cost, as well as supply chain interruptions are the major problems experienced by
MSMEs.
Paqo 48
Under the new normal environment, there will be an increasing need for MSMEs to undertake business
continuity planning and capacity building (e.g., digital skills, digitalizing operations, knowledge
transfer and information sharing, and mentoring) to strengthen resiliency to disruptions.
Encourage banks to provide financial relief to companies affected by national emergencies by

relaxing certain requirements and suspending (lie imposition of non-interest fees and charges on loans
they incurred to help reestablish cash flow.
Encourage debt relief programs for MSME bolTowers and partner financial institutions.
Develop mechanisms for real estate lessors and financial institutions to extend grace periods on
payment commitments oIMSMEs.
Build MSMEs' resilience through capacity building on formulating and implementing business
continuity plans.
Services
As the main growth driver of the Philippine economy and backbone of domestic and global industries
in the country, the services sector will continue to take a big hit from the COVID- 19 pandemic. From
the travel bans imposed by countries to alTest the spread of the virus and the subsequent slowdown of
the global economy, to (lie imposition of the ECQ across Luzon to restrict movement of people, goods,
and services, these occurrences brought the country's economic activity almost to a halt. Coming out
of this pandemic requires establishment of new protocols and belier programs for the country to adapt
to the "new normal" way of life.
Retail and e-commerce: Delivering alternative modes for retail transactions, stable supply of basic
necessities, and prime commodities
With continuing policies and measures for physical distancing and the call to "slay at home," the
increased preference for online transactions for both consuniers and merchants will be a challenge.
More supermarkets and restaurants will now engage in online shopping platforms or integrate delivery
services into their operations. Further, an increase in demand for alternative modes to facilitate shopping
through personal assistance such as pa hi/i, pasa-BUY, or MyKuya services will he seen. On the supply
of goods, there should be assurance of stable access to basic necessities and prime commodities to avoid
panic-buying among the general public.
Hasten growth of c-commerce (internet transactions) by focusing on speed, security, and

structure to increase sales. Establish necessary policies, advocacy, awareness campaigns, payment
system, and infrastructure to support its growth.
Develop protocols in the transport and sale of agricultural products to satellite markets in
communities (e.g., pamth/zang pangha;angav a /a/ipapa) to avoid congestion in public markets.
Promote collaboration of retail and restaurant owners with delivery service providers to help
establishment owners who cannot afford to integrate delivery services in their operations, and support
entry of new players in the delivery services sector.
Pa{ic.? 49
Promote and regulate alternative modes to facilitate shopping through personal assistance
services. This will be done by DTI and the Land l'ransportation Franchising and Regulatory Board.
Protection of both buyers and those delivering the service must be ensured.
Ensure collaboration between relevant implementing agencies and ICUs to organize and
promptly dispatch or mobilize "rolling stores" that sell basic necessities and prime commodities.
Though this, LGUs can setup public markets within strategic cluster areas to disperse consumer
traffic. Post-pandemic, this new type of store can be turned over and operated by the private sector
and regulated by LGUs to make it permanent and sustainable. Sources of food supply disruption must
be quickly resolved, including blockages along transport routes and quarantine measures that could
impede access to markets. An online public market system may be explored, while warehouses and
cold chain facilities for stockpiling of basic necessities must be put up in strategic areas in regions.
Financial services: Cashless society
With the rising number of online transactions in purchasing basic commodities carried out during the
quarantine, a major challenge seen is the readiness of the country's Financial system to adopt digital
currency, manage influx of cashless payment sys(ems, and possible deregulation of financial
transactions.
Encourage financial institutions to invest in digital infrastructure and implement better

cybersecurity measures and regulations for consumers and merchants/establishments.
Revisit the proposed implementation of the Philippine II) System to consider tie-ups with digital
payment systems such as PayMaya and GCash, among others.
Transport and Logistics Sector: Ensuring seamless and safe transport of people and goods
The resumption of public transportation - whether by land, air, or sea, will remain a challenge.
Implementing stringent sanitary protocols and physical distancing through reduced load factor, while
ensuring the efficient transport of goods and people, will lead to increased demand for vehicles on the
road. For international travel, immigration controls will be stricter and health checks will be carried out
frequently. Regarding logistics, consumers and businesses will expect increased use of paperless
transactions, as well as a seamless, uninterrupted supply chain that is efficient and reliable.
Priority Policies and Slrategies
Require arriving passengers to electronically fill out a Uealth Declaration Form in airports and
seaports. Establish stricter protocols in airports and seaports to include handling of persons suspected
of having infectious diseases.
Strictly enforce temperature checks in terminals, queue markings for physical distancing,
mandatory wearing of masks, and allowed passenger capacities of public transportation,
especially of buses and jeeps, must he carried out.
Reduce passenger load factor by shifting to a service contract-based provision of public transport
services. Subsidies may be needed to support financial viability of the program. Firms should be
encouraged to provide shuttle service to their workers. The Department of Transportation (DOTr) may
have to require public vehicle manufacturers to design modern vehicles that conform to the new physical
distancing norm.
Pacpo 50
Accelerate streamlining of customs procedures in tenis of speed, simplicity, and predictability to
avoid congestion in ports. An efficient system of tracking and tracing shipments must be in place, using
the latest available technology. Investments in warehouses, cold storage facilities, as well as paperless
transaction systems need to be increased.
Tourism sector: Promoting great destinations with the highest sanitary standards
While the country is expected to heavily rely on tourism to revive the economy, it is more important
that the Philippines remains virus-free when travel bans are lifted across the globe. Thus, there is a
heightened need for regular sanitation or disinfection of accommodation, tourism-related
establishments, tourist transport services, as well as a stable provision of sanitation or disinfecting
devices in these establishments.
Amend the National Accreditation Standards for all tourism enterprises (primary and secondary
tourism enterprises) to include additional measures related to sanitation, disinfection, promotion of
proper hygiene, and responsible information sharing. The current lourism Industry Training Plan needs
to be reviewed in view of health risks. Implementation of health and safety plans for employees of all
tourism enterprises must be made mandatory.
lT-BPM sector: Continuing excellent clientele service worldwide
The lT-BPM sector faces challenges in providing continuous services to its global clients with the
current ECQ situation, such as increasing the service capacity of its employees to at least 50 percent
with the work-from-home (WA-I) scheme. Additionally, there is a need to allow up to 40 percent of its
workforce to deliver work onsitc, on a shifting basis, for IT-BPM services that cannot be delivered from
home.
Adopt a last mite connectivity for WEll, and/or possible alternative working arrangements in
expanded areas of operations.
Issue a resolution or joint memorandum circular between DTI, Philippine Economic Zone
Authority (PEZA) and Board of Investments, which will allow PEZA locators and registered
companies to pull out equipment without imposing tax or duty during times of national emergencies,
where WFH schemes are being enforced or for purposes of donation and providing assistance. (Note:
This may also app/v to locatoiw or companies that are not in the IT-BPM sec/u,).
Continue the promotion of the Philippines as a destination for IT-BPM services through inbound
and outbound missions once travel is allowed, in coordination with the DTI and the DOT.
Funeral services: Meeting the increased demand for cremation services
With the deaths caused by the pandemic, the increased demand for crematoriums will be prevalent, as
cremation is the safest way to manage the remains of deceased persons who have died from infectious
diseases such as COVID-119.
Pa(:ie 51
Ensure proper interment of pandemic victims while carrying out the required health and sanitary
protocols, and provide training programs for owners and workers of funeral parlors/homes on these
protocols.
• Support the passage of the Internet Transactions Bill (House Bill 6122), which seeks to strengthen
the protection of personal data and consumers in online payments and transactions.
• Push for a law on stockpiling of critical materials e.g., Senate Bill 1347, which seeks to amend the
Philippine International Trading Corporation charter to establish stockpile program.
• Expedite components of the PUV Modernization Program on Regulatory Reform and Industry
Consolidation, particularly on changing the business model for public transport regulation, along
with industry consolidation.
• Push for House Bill 135 filed during the 17th Congress, which provides for the establishment of
crematoriums and subsidized cremation costs for indigents.
Governance and crosscutting concerns

As increased attention and demand for health care and sanitation becomes the "new normal," there is
growing expectation that LGUs are better able to deliver these devolved public services. Increased
reliance on technology in all aspects of life in turn heightens the demand for accessible, efficient, and
affordable internet services. Having access to Wi-Fl is no longer considered a luxury and has now
become a necessity. Teleconimuting and digital transactions have likewise become viable options for
the public and private sectors.
With physical distancing measures adopted everywhere, the work place will have to be reconfigured.
As citizen engagement continues online and the use of big data and analytics becomes even more
critical, challenges in strengthening social cohesion will persist given the rise of fake news and
misinformation, incidences of cybercrimes, and violations of human rights. All these changes impact
on societal behavior, level of social trust, and standards of professionalism and intcgrity expected of
public leaders and civil servants.
Empower LGUs, starting at the barangay level, and strengthen their capacities as first responders
and Irontline service delivery units. The government needs to craft the transition plan for
implementing the Supreme Court ruling in the Mandanas case, which, upon its rollout, will provide
LGUs greater access to funds for devolved services. Guidelines on the use of the Internal Revenue
Allotment (IRA) for development projects will also have to be revisited to facilitate investments in
community health programs and facilities. In light of disruptions to local economies, LGUs must also
update their Local Investments and Incentives Codes and be enipowered to shift towards new income
opportunities and revive local industries as early as 2021. For better pandemic preparedness and
response, local disaster risk reduction and management (DRRM) plans must also be amended to include
public health emergencies. Implementation of the Ease of Doing Business and Efficient Government
Service Delivery Act of 2018 (EODB-EGSD or RA 11032) must be expedited to cover the extension
of the validity of permits and other authorizations expiring within the period of State of National
Emergency, the reduction in the number of signatories and requirements, and the facilitation of online
processing and payments, among others.
Page 52
Enhance coordination and cooperation between and among the national government, regional
interagency bodies, LGUs, private sector, and civil society to enable whole-of-society response.
For better interoperability, various levels of government must address coordination gaps. Measures to
allow continuous flow, of food, health services, and other essential goods and services should be
established, mindful of cross-border logistics as well as rules and regulations issued at the national level
and the varying capacity levels across LGUs. As registries of beneficiaries of programs and projects
become crucial in this new normal, the Philippine Identification System (PhilSys) must be fast-tracked
by increasing registration kits. The conduct of the community-based monitoring system (CBMS), as
provided for by the CBMS Act (RA 11315), may need to be advanced. This will help ensure that LGUs
have regularly updated community lists.
Initiate the formulation ofa national preparedness and response framework for disease outbreaks
and pandemics. l'here is a need to harmonize existing DRRM and Crisis Management Frameworks.
This entails revisions to the implementing rules and regulations (IRR) of the Philippine DRRM Act of
2010 (RA 10 12 1) to explicitly identify public health emergencies such as pandemics in the definition
of disaster events. To enhance forward and anticipatory planning, the government must also conduct
ex-post evaluation of the various interventions under ECQ and GCQ to mine lessons learned, share best
practices across different agencies and LGUs, and influence future policies.
Fast-track the implementation of programs for ICT-enabled government to ensure greater public
reach and safer, protected, and reliable ICT. NGAs, GOCCs, and LGIJs need to shift to electronic
and paperless systems, zero-contact policies, online transactions, and new channels for service delivery.
To facilitate this shift, the Department of Information and Communications Technology (DICT) needs
to fast-track the entry of new players and quickly pursue programs such as Digital Government, Digital
Work Force, Digital Classrooms, Digital Medicine, among others. The national government will invest
in ICY to enable remote government operations, strengthen existing online platforms, and allow access
to justice while practicing physical distancing (e.g., tele-hearings, c-filing systems). To support physical
distancing measures, rules, regulations, and requirements of DBM, GPPB, COA and the Civil Service
Commission (CSC) must he reviewed, and where applicable, revised to allow electronic transactions,
alternative work arrangements, and procurement of oft-the-shelf software 27 in the government.
Safeguards against cyhercrimes and data privacy breach must also be enhanced.
Build the public's trust and confidence to enable a whole-of-society response and recovery to the
pandemic. With increased uncertainties as part of the new nonnal, the government needs to properly
conununicate risks and guarantee transparency to citizens, including the possible resurgences of the
disease (we Par/Il of this report). A whole-of-goveriment and whole-of-society National Values
Formation Program initiated by the government must be implemented to address the anticipated
changes in behavior and level of social trust. Trust in institutions must be cultivated by ensuring that
our public officials exemplify the highest standards of integrity, ethics, and professionalism; strictly
enforcing existing laws that exact their accountability to the people they serve; and protecting citizens
from discrimination and cybercrimes. Discipline and sense of responsibility must also be inculcated in
our citizenry to ensure that they abide by the country's laws and regulations.
. Institutionalize a national preparedness and response framework for pandeniics and all-hazards,
including the creation of Medical Reserve Corps, Stockpiling of Strategic and Critical
Materials, and Emergency Medical Services System.
17
Also' the elfretAin' of the /!oi Toil/all Ac!. ogei,cies in/I be subject to ,'eg,sfar pi'ocio'emeiit ru/es. u/lIe/i isia, (hail the pin-c/so se of oil-I/ic-
c/self sottome hi NGAs. (7OCCs, and LGUs.
Page 53
Amend the Labor Code and the Telecommuting Act of 2013 (RA 11165) to formally establish
alternative work schemes such as compressed workweek or ulexi-scliedule, and to extend
telecommuting options to employees in the public sector.
Review the Voter's Registration Act of 1996 (RA 8189) and other election-related laws to allow
for online registration and facilitate risk mitigation procedures for the 2022 National and Local
Elections.
Social development
Health and nuti lion: Continuing 11weal of CO V/B- 19
COVID-19 will remain a threat as we enter the new normal. Other highly infectious disease might
also emerge in the future; thus, adjusting to the new normal requires an integrated health data
management system that tracks and links patient referrals and laboratory testing as well as monitors the
supply of available equipment, medicines, and blood, among others. Aside from upgrading the curative
aspect of health and its related support mechanisms, ramping up the promotion of preventive healthcare
will also be necessary in the new normal to reduce the chances of people getting sick and incurring
costs, as well as straining of the health system.
Improve health care facilities. l-lealth care facilities need to be upgraded, with emphasis on increasing
the number of fully equipped isolation rooms and critical care beds in hospitals. Quarantine facilities in
major ports and airports also need to be improved to enable the Bureau of Quarantine to better perform
its mandate to ensure health security.
Improve epidemiological and surveillance capacities for COVID-l9 and other infectious diseases
at the national, regional, provincial, and municipal levels, focusing on areas on or near major points of
entry and strategic LGUs in a region. Specifically, an operational Level 2 Biosafety laboratory must
be present in every region, stocked with adequate number of testing kits. Local Centers for Disease
Control (CDC) may also be established under the supervision of a national CDC or the Research
Institute for Tropical Medicine.
Improve the status and supply of Uuman Resources for Health (IIRI-I). Immediate measures need
to be undertaken to efficiently mobilize health personnel. These include mechanisms that will enable
the efficient deployment of personnel from different health facilities during emergencies. Pools of
medical and allied health professionals can be established and mobilized per level of care nationwide.
Provisions in the Universal l-lealIh Care (UFIC) Law that cover incentives, benefits, and scholarships
for FIRE! must be implemented.
Ensure full Philippine health Insurance Corporation (Philllealth) benefit coverage for emerging
and reemerging diseases. PhilI-Icalth should guarantee case rate packages for emerging and
reemerging diseases. It also has to monitor and fist-track the processing of hospital claims, and to
properly and strictly implement the No Co-payment Policy under the IJHC Law.
Intensify public health education campaign, including effective risk communication to encourage
aggressive social distancing, better hygiene, self-isolation, and health-seeking behavior at the first sign
of symptoms.
Institute a fully integrated health information system and database down to the provincial level
with seamless navigation and referral mechanisms between public and private providers. There is a
need to come up with an inventory of available equipment and services and to make these accessible.
Pane 54
Artificial intelligence and data analytics may be utilized to understand the spread of COVID-19 and
other diseases, improve treatment methods and streamline medical care, as well as determine the
effectiveness of government response.
Strengthen and expand telehealth system for primary care consultations to reduce the number of
persons going to hospitals during times of emergencies.
Ensure the supply of medical commodities. An emergency supply management and logistics system
must be instituted, with a maintained national stockpile of medicines, supplies, PPEs, ventilators, and
related resources for use during a public health emergency. In the short term, procurement of these
necessary equipment needs to be expedited.
Ensure that proper nutrition is provided during emergencies, especially among children, pregnant
and breastfeeding women, and senior citizens, who are more vulnerable during emergency situations,
consistent with the National Policy on Nutrition Management in Emergencies and Disasters. Nutrition
guidelines for relief food packs may be provided to LGUs and other agencies. The National Nutrition
Council (NNC) and Department of Science and Technology- Food and Nutrition Research Institute
(DOST.FNRI) will also continue advocating for recipes that would help transform relief goods (i.e.,
canned goods, instant noodles) into more nutritious meals.
Strengthen the national response and preparedness for health emergencies and pandemics
(similar to Senate Bill No. 1573 filed by the late Senator Miriam Defensor-Santiago).
Revisit salient provisions of the NDRRM Act (RA 10 12 1) on increasing contingency budget
for the management of health-related emergencies.
Review the Magna Carta of l-lealth Workers toward increasing benefits and ensuring that these
benefits are received.
Social protection: Increasing vulnerable groups' access to social services
Increasing the access to and expediting the delivery of social services to the most vulnerable groups -
poor, women, persons with disabilities, older persons, children, indigenous peoples, among others are
the biggest challenges in implementing social protection programs under the new nonnal. Specifically,
there is a need for more emergency-responsive policies and social insurance systems. Enhanced and
immediate assistance must be provided to older persons. Food, cash, and other forms of assistance may
be expanded to include middle-class earners in periods of prolonged lockdowns, which affect their
earning ability. Increased cases of violence against women and children, both reported and unreported,
also need to be addressed.
Fast-track implementation of and registration to the Philippine Identification System (PhilSys)

and explore linking the ID cards to a digital payment system that will allow for more efficient transfer
of government assistance in times of crisis, pandemics, or disasters.
Develop a registry of vulnerable persons and groups using data from the PhilSys, Lislahanan or
National Household Targeting System for Poverty Reduction, Commnunity.Based Monitoring System,
Registry System for Basic Sectors in Agriculture, registry of creative and cultural workers, gig economy
workers platforms (Grab, Angkas, Food Panda, etc), and the government's registry for the Social
Amelioration Program that will expedite the delivery of social services and aid. Likewise, programs
during crises and pandemics must be institutionalized through inclusion in the Social Protection Floor.
Pacie 55
Explore the possibility of automatic and universal release of aid to the members (active and updated)
and contributors of the national government's social insurance programs such as the Social Security
System (SSS) and Government Service insurance System (GSIS) in times of national emergencies
without the need for applications. This will enable the contributors to access resources to augment their
savings, which is essential in preventing them from Ihlling into poverty.
Promote savings mobilization as a critical component of all social protection programs, like the
Pais/au'id Pasnilyang P/lip/iso Program.
Proposed Legislative Action
• Pass the Universal Basic Income during Pandemics or Social Amelioration Act.
Education: Adopting flexible and blended learning
To lessen physical contact, schools need to adopt blended and/or online learning. The changing learning
and employment landscape will not only neccssitate the adoption olnew technology-based learning for
current cohorts of students; but also, for workers who will require retooling and upskilling, especially
those whose livelihoods have been affected by COVID-19. As online learning will be adopted, issues
of expensive, slow, and unreliable internet access; as well as the added expense for devices needed to
access online learning resources and tools are major risks that will have to be addressed.
Expand and institutionalize flexible learning options such as open high school, alternative delivery
modes, and satellites for off-grid areas. In response to the lack of universal internet access necessary
for online classes, modules designed for printing must be prepared and be delivered via electronic mail,
or distributed in hard copy in the meantime. The conduct of classes via radio and television (TV) might
also be a temporary solution in conjunction with physical hand-outs. Partnerships between the public
and private sector can be leveraged to expand access to flexible learning modalities (i.e., free data access
for e-learning portals, discounted internet rates for teachers and students). The Government Assistance
to Students and Teachers in Private Education (GATSPE) may also be expanded to cover elementary
students and teachers.
Expedite the formulation of a multi-modal, multi-strategy Learning Continuity Plan by the

Department of Education (DepEd), togetherwith different stakeholders. Forging par nership with DICT
in creating and maintaining a learning nianageinent platform is also important in attaining flexible
learning for teachers and students.
Pursue adult learning through online and/or blended learning such as the promotion of massive
open online courses (MOOCs) and flexible training alTangeinents through blended programs that will
reduce face-to-face contact. Education agencies also need to collaborate with the private sector and
professional organizations to increase the number of online courses accredited for Continuing
Professional Development.
Prioritize investments in online platforms to improve existing ones such as the DepEd Commons or
to develop a new national c-learning platform. The development of learning materials and modules
specific for students, teachers, and parents implementing c-learning, flexible learning options, and radio
or TV classes will require budget allocations. Increased funding will be needed to provide for the
communications costs for teachers and Student Financial Assistance Programs (StuFAPs) beneficiaries.
Teacher training funds will also need to be realigned to capacitate them to teach blended or flexible
learning classes.
Page 56
• Enact the Alternative Learning Systcm Bill (Senate l3ill ISB1 No. 740).
• Enact the ICT in Education Bill (SB No. 594) 10 strengthen the use of ICT in elementary and
high school.
• Enact a legislation that would allow funding to support blended learning systems in public and
private schools, as well as in higher education institutions (H Els).
• Amend the proposed Reserve Officer Training Corps and/or tap the Civic Welfare Training
Service Program in 1-lEls to provide disaster-response and medic training option.
Labor and employment
Higher rates of unemployment and underemployment. As the global and domestic economic
activities continue to weaken, unemployment and underemployment are likely to increase. As of April
25, the Department of Labor and Employment (DOLE) has already recorded 2.2 million displaced
workers.
Increased telecommuting or other alternative work arrangements. With the practice of social
distancing likely persisting in the near term, the preference for telecommuting and other alternative
work arrangements is seen to increase in both the government and private sectors.
Increased demand for workers willing to take on precarious tasks. With the onset of the COVID-
19 pandemic, novel occupational hazards emerged and the deniand for workers willing to take on
precarious tasks increased.
Priority Policies and Stralegies
Improve social protection programs and income support systems. Apart from wage subsidy
programs, the unemployment benefits of the SSS riced to be expanded to make aid available to
temporarily laid off workers. Those in sectors that will continue to be affected post-ECQ, including
freelancers in the gig economy and cultural and creative industries, will need continuing income
support. DOLE's PhiliobsNet need to be expanded to highlight online and home-based job openings.
Retool the labor force. Skills retooling, through i'ESDA's Massive Open Online Courses. Mobile
Training Laboratories, and other flexible or blended training arrangements, needs to be promoted to
improve the employability of displaced workers. This will enable workers who have been displaced,
whether temporarily or permanently, to take courses for employability elsewhere. Subsidies may be
shouldered by the government, or in partnership with the private sector through institution-based,
enterprise-based, or online modalities similar to the model of Skills Future Singapore. Procedures for
availing TESDA scholarship programs must also be made easier. The Mobile Training Laboratory
(MTL) Program may be expanded to better serve far-flung areas. l'apping the Tulong Trubu/zo Fund
will help in funding programs for these interventions. Meanwhile, the PRC will need to strengthen
Continuing Professional Development (CPD) programs through online-based platforms.
Issue standard guidelines on alternative work arrangements. The IRR of the Telecommuting Act
(RA 11165) needs to be modified to take into consideration the current situation and occurrence of
similar crisis in the future. Moreover, telecommuting and other alternative work arrangements will also
have to be extended to the public sector, Ibllowing guidelines from CSC that will also support ICT-
enabled government. On May 7,2020, CSC issued Memorandum Circular No. 10, s. 2020 which makes
Pa a 57
available multiple alternative work arrangements that government agencies can adopl while the entire
country is placed under a Stale of Public Health Emergency due to (he COVID-19 pandemic. 28
Formulate and revisit guidelines on the provision of hazard pay for workers in the private and
public sectors. Guidelines on the provision on hazard pay for workers in (lie private sector can also be
issued by DOLE. In this regard, expanding the coverage and awareness of companies and employees
of the Employees Compensation Program may ease the burden of additional costs on private sector
employers providing hazard pay. Likewise, provision of hazard pay among workers in the public sector
needs to be institutionalized by virtue ofan issuance from CSC. The current hazard pay scale for public
health workers indicated in DBM-DOl-1 Joint Circular No. 2016-01 needs to he revisited and refined
towards more equitable rates across salary grades. 29
Proposed Legislative Aclions
• The five-day work week prescribed by the Labor Codc would need to be amended, accompanied
by more specific guidelines on the implementation of alternative work arrangements for both
private and public sector. 3° Alongside this, the creation of a legal framework on part-time work
to increase flexibility for employers while integrating workers' protection needs to be established
under the law.
• The official definition and classification of "hazardous work' and "occupational hazards" in the
Labor Code need to be revised relative to the current and emerging occupational hazards and in
accordance with international labor standards.
Equitable hazard allowance of public health workers across salary grades needs to be pursued.
• The guidelines and benefits of the Employees Compensation Program need to be amended to
compensate incidents occurring in alternative work arrangements.
Housing and urban development: Integrating public health goals
Moving forward, public health must be a foremost consideration in land use and local shelter planning.
Housing designs may need to be changed to integrate washing areas before entry into the main structure.
Low-cost and socialized housing developments should ensure ample public and green spaces.
Incorporate hazard and health standards in the updated Comprehensive Land Use Plans and zoning
ordinances. More open and green spaces and better walkability that allow for social distancing will need
to be prioritized in these plans.
Explore the inclusion of an open or public space, which may be used for isolation and/or quarantine
or other similar purposes, in the design of socialized housing and resettlement packages.
Review procedures to streamline the issuance of housing-related licenses, clearances, and permits
in light of COVID-19.
28
i'm), to (li/v. CSC a/Ia cccl ott!,' tio apes of flexible n*otg armattgettiet,Is at gotet'nnietil: (a) c:onipta sect fa,cr-dav no,'k week
(Mctna,attd,un Candor /MGJ Na. 22. i 2014); and (/,) flcxil,lc work-tog I,on,-s tIns tglt MC N0. 25.s. 2019.
29
pu/i/ic health 'cork-ct's ti/I, a so/ar) grade (S(i) 19 and helm,', rec'eil 'e a Iia:a,'d pa' of25 /)c')eetIi of their 'nan//i/i' basic so/air,
n/I i/c those it'll/i SOs 20 and 21 trccit'e 15 pctretil atic/ 13 pci -cent of I/iris' toast/h!,' has/c solar, 'cspecli,'elr. This Inca/Is that a SC /9
lien/tb, n'orke,' with a joan/h/i' ca/ar,' of I'IIi'45. 269 receives a /,a:at'tI pIn' at l'llI' / 1.317. it/i i/c a SC 20 heal/I, ,ca,'ker with a
so/wi' u/'l'/HSI. 155 receives a loner 'ate of I'll!' 7.673 despite fhcing the same level ofrtc/<.
Lasting policies oaf/crib/c ii'arkurg arrcatgctnents 6,' DCI. E inc/ac/c Depaii,nent Order (DO) 21v. 1990 and Dcpn,'Io,cnt Ad''iso0' (DA)
Na. 02. s. 2004 far gaide/ines tin anp/cn,eotct,g campi 'essed n'oi'k ,,'cck sd,e,,,e: 1)4 No. 02. s. 2009 flit' g,tidel/t,es on adnlititlg I 'arinns
flexible 'tot-king at'is:,igcme,sts; and DO Na. 202- / 9/hr the 11/b? nfl/ic' i'c/ecaooniaing A ci.
Pane 58
Prioritize the implementation of the Housing Rental Subsidy Program for low-income informal
settler families (ISFs) and shoulder additional costs for moving ISFs into better housing conditions.
Appropriation ibr alternative modes of provision olhousing with adequate space (e.g., housing
voucher, rental subsidy) for low-income ISFs.
Migra tic) n
Repatriation of overseas Filipino workers (OFWs). As of April 13, the number of displaced OFWs
due to the pandemic reached 32,335, while the number of repatriated OFWs stood at 11,624. These
figures are expected to increase as CO V.ID- 19 spreads to more countries, with more governments using
economic tools to suppress the spread of the virus and as the global economy enters into recession.
Increased vulnerability of OFWs in countries of destination. There are 736 confirmed COVID- 19
cases and 88 deaths among OFWs, as of April 13. Given the possible recurrence and emergence of new
outbreaks in the near term, OFWs are exposed to greater risks and heightened vulnerability due to
inadequate social protection.
Facilitate the employment of repatriated OFWs. This can be done through the proactive job
matching and competency assessment and certification, along with online skills upgrading and re-
tooling programs, especially for tclecomniuting and c-commerce-friendly jobs. Programs of DOST such
as theBalllc-Scientist Program and (lie Research and Development Lead, should fhcilitate the utilization
of returnees' expertise in their home region or province. While there may be limited local employment
opportunities in the private sector given slower economic activity, the government through the PSA,
will need additional personnel to fast-track the implemcnL lion of PhilSys and to conduct the CBMS.
Enhance government financial support and legal assistance for repatriated OFWs. The
government needs to extend financial and livelihood assistance, especially for online enterprises, e-
commerce, and agriculture-related livelihood programs. Soft loans can be offered to assist OFWs in
starting their own businesses. The budget of the OFW-Enterprise Development and Loan Program
needs to be increased. Financial literacy programs will enable OFWs to better manage their finances.
The absorptive capacity of OFW-serving agencies needs to be expanded given the substantial volume
of returnees.
Enhance health insurance and social security for OFWs. The government needs to ensure the
effective implementation of mandatory 1 1hiIl-lealth 3 ' and SSS coverage among OFWs. As such,
PhilHealth and SSS need to enhance electronic payment services to fhcilitate the payment of premium
contributions. In addition, there is a need to allow for an installment payment schemes, pursue bilateral
labor agreements (BLAs) with stringent welfare and protection provisions, social security agreements,
and emergency responses with more host countries, especially in countries where labor laws do not
cover domestic workers. The possible inclusion of health insurance in BLAs and in the Standard
Employment Contract may be explored. Increased operating fluids will also have to be provided to
o P/i ill/call!, Itenefits/br OP U's ü,clm/r inpatient lie, hospital ca'ifmc,nent) oI,qaflcat (sri, ices (fiat include c/cc/lie slogical praccdii its
taligilig Itvol 'ti/nor to ti/a/OF - opeiat ions ,ilic,r paticiits air sent home onho, the satiie c/a, /br past -ape) a/nc cat: !,c,w/it packages fbi TB.
Il/VIA lBS. angolal hi/c. tHU/aria. inscetonn and i,tbctl ligatini, radio/herapt and he,,ineliafi six: and Z benefits (/hr .Vc,c,r and ca/as! lop/i/C
eases sitcit as cancers and heat-! Setcc/sf
Pacje 59
implement programs or activities for the welfare, health-related (including mental health), and
emergency programs/activities response at posts.
• Revisit bills on health hazards and preparedness and on situating safeguards for Filipino
migrants.
Environment and natural resources

The COVID- 19 pandemic is a manifestation of the chronic effects of human activity on wildlife
resourccs and habitats at an unprecedented rate, resurfacing in more damaging impacts on
environmental and public health. In the new normal state, managing pollution and sustainable use of
natural resources vis-a-vis addressing the threat of future pandemics under a changing climate become
even more challenging. There will be a potential high demand for (a) indigenous plants and animals for
pharmaceutical use; (b) water supply for disinfection/sanitation purposes; and (c) wood and non-wood
products for the construction of quarantine and shelter facilities. Existing waste management facilities
may also be overwhelmed by huge volume of wastes from health care facilities and households, while
urban air quality may deteriorate post-ECQ, due to increased number of trips of public utility vehicles
and volume of private vehicles attributed to social distancing.
The new nonnal state requires a combination of strengthened, scaled up, and innovative actions and
solutions to curb the elevated environmental, climate, and health risks posed by COVID-19.
Streamline the management of health care and infections wastes, especially at the community and
household levels. This will be done through:
• Ensuring compliance of/walt!, care facilities3 2 and treatm ent technologies33 ji'it/a the standards
for hazardous waste management. This includes strict enforcement and monitoring of existing
treatment technologies employed in the treatment, storage, and disposal (1'SD) facilities to handle
new pathogens or viruses, in compliance with the applicable environmental standards.
• Modernizing and increasing the iiiiniher of TSJ) facilities tar hazardous healthcare wastes.
Registration process will be streamlined and incentives will he provided to encourage private
sector investments in the establishment of more TSI) facilities.
• Improving disposal of healthcare wastes at the household or harangay level. Protocols for
handling, treatment, and disposal of health care wastes, especially those generated by households,
will need to be defined such as to guarantee: (a) proper segregation at source; (b) partnerships
between and among LGUs and 1'SD accredited facilities to ensure that untreated healthcare
wastes do not reach materials recovery facilities (MRFs) and sanitary landfills (SLFs); and (e)
expanded coverage of hazardous waste tracking system to cover household wastes.
• Supporting ancillary remedial actions to improve environmental health and mitigate climate
change. This puts emphasis on pursuing policies on: (a) permanent adoption of telecommuting
work arrangement both for private and public sectors, as applicable; (b) more open and green
urban spaces to reduce air pollution and carbon emissions and to improve human health and well-
being; (c) more jobs in the waste management sector; and (d) mass media campaign to promote
environmental and public health awareness and positive behavioral change.
32
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Pane 60
Prioritize the protection and conservation of natural resources, especially in degradation
hotspots and critical ecosystems, through:
Jntensijj'ing surveillance and enforcement activities to protect ;s'ildlife and their habitats. This
is to combat habitat encroachment and illegal trade of wild animals to prevent the emergence and
spread of zoonotic infectious diseases. Capacity building, environmental education campaign,
and coordination across law enforcement chain will be reinforced to improve governance and
abate proliferation of poachers and the wildlife black market.
Undertaking R&D on the utilization of natural resources for disease prevention and cure.
Priority will be given to studies on zoonosis in selected wildlife reservoir and natural resources
with potential antibacterial/antiviral properties and treatments and vaccines for pharmaceutical
applications.
hrtens,fying agrofOrestry development. Promotion of agroforestry and establishment of
commercial forest plantations need to be prioritized to support demand for food and wood and
non-wood forest products (e.g., bamboo and other grasses, rattan, and fiber) for the construction
of temporary isolation facilities and production of ceo-friendly PPEs (e.g., face masks), and the
provision of food supply in case of lockdown. Investment support package for communities (e.g.,
bank financing and technical assistance) will be identified to support the establishment of
commercial forest plantations in tenured forest lands.
Strengthen big iniplein en tation of forest protection, reforestation, and n'atersl,ed 'nanageinen
activities, especially in critical watersheds. Monitoring and enforcement activities through
sustainable forest management and integrated watershed management will be strengthened in
cooperation with LGUs and communities to sustain water provisioning and regulating services
of forests and prevent unlawful activities (e.g., illegal logging and poaching resulting in loss of
biodiversity).
Ensure water security, especially in COVID-19 pandemic affected areas by:
Accelerating the provLsion of water supply and sanitation services to improve access to safe
and adequate water. The development and expansion of water supply system including
sewerage development and wastewaler treatment facilities will be sustained. This will
prioritize areas of operation of water service providers (WSP) to meet the daily water needs of
the people for the precautionary or mitigating measures for COVID 19, while ensuring water
quality is within environmental standards.
Enhancing water conservation and efficiencj' measures to avert water shortages. i'his
includes establishment of rainwater harvesting facilities and water recycling technologies,
and conduct of information campaigns on water conservation in traditional and social media
platforms. This will be complemented with the ongoing comprehensive water
resource assessment in groundwater critical areas and major river basins to analyze current
available and potential groundwater sources to ensure sustainability of the country's water
supply.
Development and implementation of the National Roadmap for Water Security. The ongoing
preparation of the roadmap should be able to incorporate the possible impacts of future
epidemic/pandemic and climate change/variability to address the impending water crisis.
Amend the Ecological Solid Waste Management Act of 2000 (RA 9003) to bridge the policy
gap between municipal waste management and health care waste management by streamlining
protocols on the management of hazardous wastes, particularly infectious wastes, at the
community and household levels.
Pane 61
• Amend environment-related laws such as RA Nos. 9003, 9275, 8749, and 6969 to provide
higher penalties and stringent administrative measures to facilitate adjustment to inflation and
maintain vigilance against future environmental offenses or non-compliance committed by
small to large industries.
• Amend the Wildlife Act (RA 9147) to strengthen mandatory quarantine protocols for
confiscated animals and institute greater penalties for poaching, trade, and consumption of wild
animals to prevent spread of zoonotic pathogens (e.g., bacteria and viruses).
• Enact a law to define and implement sanitary and phytosanitary measures to address possible
entry of zoonotic infectious disease into the country (e.g., standards and protocols for crops,
livestock, fisheries, and wildlife).
• Enact the creation of an apex body (i.e., Department of Water Resources) that will act as the
single lead agency to oversee/coordinate overall policy and project/program implementation on
water resources.
• Enact the creation of an Independent Economic or Financial Regulator for Water Supply and
Sanitation to harmonize the regulatory practices, processes, fees, and standards on water supply
and sanitation while addressing the overlapping functions orjurisdictions of existing regulatory
entities.
Pane 62
Annex
Transition to the new normal and ways forward:
Suggested programs and projects
Economic development
Macroeconorny
Fiscal Sector
PROGRAM DESCRIPTION RESPONSIBLE AGENCIES AND UNITS

For the rest of 2020
Secure supplementary budget for 2020 to fund crucial Implementing agencies of identified crucial programs and
projects outside the Bayanman to Heal as One Act projects, Department of Budget and Management (DBM)
For 2021
Set budget prioiity on health sector and disaster risks Department of Health (DOH), Department of the Interior and
resiliency/preparedness Local Government (DILG), Office of Civil Defense (OCD)
Information and communications technology (tCT) Bureau of Internal Revenue (BIR), Bureau of Customs
infrastructure for collecting agencies toward digital taxation (BOC)
External Sector

Budget support for engaging in regional and multilateral Department of Foreign Affairs (DFA), Department of
bra to pursue the concern on regional stockpiling of Agriculture (DA), Department of Trade and Industry (DTI)
essential goods or establishment of regional foodbanks
For 2021
Fast-track the completion of the TradeNet Project DTI, DA, and other trade regulatory agencies
• Establish a communication management system DTI, DA, Bureau of Customs (BOC), Department of the
between NG, LGUs, and private sector Interior and Local Government (DILG)
• Put up an integrated website that tracks real time
information on cargo release, availability of supply,
production and inventory
• Formulate manual of operations for traders, NG
regulators, and LGUs during time of crisis
Budget support for engaging in regional and multilateral DFA, DA, DTI
fora to pursue the concern on regional stockpiling of
essential goods or establishment of regional foodbanks
Investments in technical equipment for detection and DA, Bureau of Quarantine
increase in quarantine personnel
Page 64
Production sectors
Agriculture and Fishery Sector

Ensure funding for the implementation of the following programs and DA in partnership with DTI, DOST, LGUs
projects under the DA's Mon Lahat, Pagka!ng Sapat (ALPAS) so
COVID-19 Program:
• Expanded Agriculture Insurance Project
• Rice Resiliency Project
• Integrated Livestock and Corn Resiliency Project
• Expanded Small Ruminants and Poultry Project
• Coconut-based Enhanced Diversification Project
• Upscaling and expansion of geographic coverage of (<ac/iwo ni
An! at I<ita and implementation of other modes or channels (e.g.,
Kadiwa express/on wheels/online/retail selling)
• Urban Agriculture Project
Other than ALPAS sa COVID-19 Program, DA (subject to DBM rules
and regulations) may realign its budget for non-food banner programs
(e.g., tobacco, etc.) into:
• Subsidy or distribution of farm machinery
• Piloting or expanding other e-commerce and marketing platforms
(e.g., online palengke)
• Research, development, and extension; and commercialization of
safe, nutritious, medicinal or therapeutic, and well-packaged agri-
food products
For programs of other agencies not covered by Bayanihan Act, Department of Agrarian Reform (DAR)
realignment of the following may be considered to contribute to the
funds to be pooled by DBM for funding social amelioration programs:
• Reprogram the unobligated 2019 continuing and 2020 current
budget under the Agrarian Reform Beneficiaries Development
Sustainability Program
• Defer the procurement of vehicles under the Support to
Parcelization of Lands for Individual Titling (SPLIT) Project (Note:
This should be made available in 2021 given that mobility support
is critical in field operation). SPLIT's field validation surveys may
proceed in 2020, with an additional task of identifying agrarian
reform beneficiaries who could be eligible for the social
amelioration package.
• Focus on funding the operation and maintenance, rehabilitation, National Irrigation Administration (NIA)
and/or restoration of existing irrigation systems, instead of new
construction of small and/or multi-year big irrigation systems.
• Intensify the Cash-for-Work program (e.g., desilting of canals,
etc.) as part of the social amelioration program for members of
Irrigators Associations.
• Establish and promote mobile marketplaces, rolling stores, and DA, DTI, LGUs
foodbanks
Pans 65
For 2021
• Ensure funding for the construction and enhancement of logistics and DA, LGUs, Department of Public Works
road infrastructures such as: and Highways (DPWH)
• Road and transport projects under Build, Build, Build Program
• Wholesale food terminals and trading centers
• Warehouses, cold storage, mobile storage, cold chain, and
refrigeration facilities.
• Establish more class AAA slaughterhouses DA, DTI, LGUs
Provide support services or assistance to farmers and agricullure- DA, DTI, DSWD, LGUs, Cooperative
based enterprises in the form of: Development Authority
• Credit and insurance with concessional terms
• Livelihood opportunities
• Support programs for cooperatives
• Fast-tracked implementation of the Rice Competitiveness
Enhancement Fund Mechanization component
• Social amelioration programs for displaced fisherfolk,
farmworkers. and laborers.
• Secure funding for the improvement or enhancement of online DA, DTI, DICT
transactions and deliveries, as well as the improvement of digital
connectivity and internet services
• Create digital pa!engke or supermarkets in partnership with
transportation network vehicle service and delivery companies
• Undertake capacity building and IEC projects on food safety DA, DOST, FDA
awareness
• Review and develop regulatory measures and standards
• Streamline FDA processes for certification and roll out of developed
technologies and products
• Conduct online lectures and provision of start-up kits for urban DA, LGUs
gardening
• Undertake community gardening projects in collaboration with LGLJs
and cooperatives
Pane 66
Ii: dusisy

Manufacturing
• Direct stimulus package as well as existing incentives towards the DTI, DOF, DBM
production of essential goods and services
• Scale up programs for the roll out of existing DOST-approved ongoing DOST
applied science researches on alternative materials for PPEs
Cons truction
Conduct comprehensive vulnerability and risk assessment of critical
infrastructure, particularly in areas considered as COVID-19 hot spots
(including public buildings that may be used as isolation or treatment DOH, DPWH
facilities)
Electricity/Power
Implement a financial assistance program for Electric Cooperatives National Electrification Administration
whose operations and maintenance requirements are compromised
by the delayed payment of electricity bills
For 2021
Manufacturing
• Map out entire value chains across primary, secondary, and tertiary
industries in these sectors to determine where critical and alternative DTI
resources are sourced and identification of possible production
bottlenecks.
• Scale up programs for the roll out of DOST-approved technologies for DTI, DOST
food processing to prolong the shelf-life of food products
• Expansion of Shared Service Facilities and Regional Inclusive DTI
Innovation Centers
Cons truction
• Construct andlor rehabilitate hospitals or designated quarantine
holding facilities in LGUs, airports, and major sea ports DOH, DBM, DILG
• Under the Universal Health Care Law, strengthen the health system
through the establishment of facilities and laboratories and acquisition
of necessary hospital equipment to address COVID-19 and possible DOH
recurrence of virus contagion, among others
Pgu 67
MSMEs

Forthe rest of 2020
• Develop targeted financial support program packages for MSMEs DOF, DTI, DBM, Government finance
affected by national emergencies (e.g., operating loss carry-over, institutions
access to credit, employment subsidy support, loan repayment
extension, waiver of penalties and fees, among others)
• Develop digital skills for those in MSMEs; Support digitization of DTI
MSME operations; Enable knowledge transfer and information-
sharing between MSMEs, through:
• Up-skilling/Re-tooling
• Digital solutions for MSME operations (e.g., e-payment, chatbot,
customer management, etc.)
• Webinars or trainings on business continuity, supply chain
management, and intellectual property
For 2021
Expand the scope of the National Wages and Productivity DOLE-N WPC
Commission's Productivity Toolbox and promote productivity-based DTI, DBM
incentive schemes to sharpen the productivity perspective of BCPs
(i.e., one of the goals of the BCPs, beyond mitigation of business
disruption, should be to enable/unlock workplace productivity and to
encourage sharing of productivity gains to generate profits for
businesses and augment workers' incomes.)
Deploy Productivity Toolbox and technical assistance in developing
productivity-based incentives schemes using various modes (i.e.,
face-to-face, virtual/electronic modes) appropriate to various work
arrangements including telecommutingfwork from home.
Continue the MSME Resiliency Program, including capacity-building
activities and mentoring (online and offhine modules)
• Project officers to be assigned to assist selected MSMEs on new
leadership paradigms and business models
• Business experts on digitization, business resiliency, and
sustainability to network with MSMEs through Shared Service
Facilities, Fabrication Labs, One Town, One Product Hubs, and
Go Lokal!
• Programs in Transition Design, Design to Improve Life, and Fab
City
Paqe 68
Services

Retail and E-commerce

• Establish warehouses, including cold chain facilities, for DTI, DA, LGUs
stockpiling of basic necessities in strategic areas per region
Transport
• Review DOTr's remaining budget for the Public Utility Vehicle
Modernization Program (PUVMP) in 2020 and allocate funds to DOTr
allow for regulatory shift towards industry consolidation and
service contract—based provision of public transport services
Tourism
• Provide training funds for Department of Tourism-Office of
Tourism Standards and Regulation (DOT-OSTR) personnel, DOT, DOH, LGUs
Regional Accreditation Officers, and tourism frontliners on
sanitation standards and incident command protocol, including
protocols and coordination with appropriate government
agencies DOT
• Procure PPEs for DOT-OSTR and Regional Accreditation
Officers
For 2021
Retail and E-commerce

• Secure funding for e-commerce programs initiatives DII, DId
• Increase LGU allocation for warehouse and/or cold chain facility OR DA, LGUs
• Increase advocacy on better sanitation/hygiene measures in DTI, LOU
retail establishments
Financial Services
Secure funding for increased training among related institutions DTI, DId, BSP
on digital transactions and services as well as cybersecurity
measures
Transport
• Purchase high-end temperature scanners and disinfectants to be
placed in major international airports and domestic ports across D OTr, DOH
the country for mandatory inbound and outbound temperature
screening of passengers; Allocate or propose budget for medical
clinics and personnel equipped to handle sick passengers;
disinfection materials must be also purchased for all public
transportation
• Implement the Metro Manila Route Rationalization Study under
DOTr
the PUVMP in priority areas
• Allot funds for procurement of relevant lEd materials and
supplies for distribution to accredited establishments, such as
DOT DOIr, DOH
medical/hygienic kits, disinfectant kits for tourism transport
vehicles, among others.
Tourism
• Allocate bouncing-back fund for the Re-Start Up Program for DOT
MSMEs and community-based organizations from the Tourism
Development Fund or Trust Liability Account/Special Projects
Review Committee
Pane 69
1T-BPM DTI, DOLE

Allocate budget for re-skilling and up-skilling of workforce in the
IT-BPM industry
Skills Deve'opment
DOLE, TESDA, and other relevant agencies
Partnership with TESDA on possible employment measures that
will provide skills and livelihood opportunities for workers to
minimize impact of COVID-19, ensure fast recovery from income
and job losses, and build long-term resilience against future
crises.
Governance and crosscutting concerns

Strategic stockpiling of personal protective equipment (PPEs), DTI, DILG, LGUs, Department of Health
medical equipment, medicines, and other medical supplies (DOH), Office of Civil Defense OCD)
Strategic and adequate logistic facilities (e.g., post-harvest facilities, DTI, DA, DILG, LGUs, Department of
market satellites, market on wheels, cargo movement) Transportation (DOTr)
Conduct of the following activities through the National/Local DRRM
Fund:
• Capacity assessment of health facilities and personnel for DOH, OCD, DILG, LGUs
emergency preparedness and response
• Geo-mapping of critical facilities with corresponding OCD, DILG, LGUs
attributes and correct geotagged location (e.g., DRRM
operation centers nationwide, evacuation centers, hospitals,
schools, ICT towers, churches, etc.) DILG, LGUs, OCD, DOH
• Provide incentives to encourage private sector to augment
facilities and equipment for COVID-19 response, as well as
for disaster preparedness (e.g., accommodation for health
workers, quarantine facility for suspected COVID-19 cases,
or evacuation site or temporary shelter in case of disaster)
Support to and capacity building of LGUs to conduct epidemiology DOH
and health surveillance, including information dissemination
Measures to ensure continuous supply and flow of food and other DA, DTI, DOH, DOTr, DILG, LGUs,
essential goods and services; and provision of health services Department of Social Welfare and
Development (DSWD)
Pane 70
Fast-track the implementation of the following programs: DICT
• Digital classrooms (distance learning systems and tablets or
laptops)
• Digital work force (reskilling and upskilling of vulnerable
sectors)
• Digital medicine (telemedicine kits for distance meetings
and telemedicine platforms)
• Digital government
• Digital social assistance
• National Broadband Program
• Free internet Wi-Fi in public places and state universities
and colleges
• Emergency communication
• Defense of critical infonnation infrastructure
• Strengthening the National Computer Emergency
Response Team
Measures to improve risk and crisis communication DOH, OCD with all agencies
For 2021
Increase budget for the fast-tracked implementation of PhilSys Philippine Stalislics Authority (PSA)- PhilSys
Registry Office
Conduct of a CAPI-based CBMS PSA
Strategic stockpiling and pandemic or hazards preparedness DTI, DOH, OCD, DILG, LGUs
Strategic and adequate logistic facilities (e.g., post-harvest facilities, DTI, DA, DOTr, DILG, LGUs
market satellites, market on wheels, cargo movement)
Upgrading of existing data infrastructure in the NDRRM Operations OCD, Department of Science and Technology
Center such as geographic information system, monitoring (DOST) Philippine Institute of Volcanology
-
instruments, forecasting and early warning, geolocation technologies, and Seismology and Philippine Atmospheric,
reporting systems, etc. Geophysical, and Astronomical Services
Administration, Department of Environment and
Natural Resources (DENR) Mines and
-
Geoscience Bureau and National Mapping and

Resource Information Authority
Development of a capacity-building program for NGAs to formulate CSC, Development Academy of the Philippines
and implement public service continuity plans (DAP)
Procurement and maintenance of mobile and field hospitals with at DOH, LGUs
least level 2 capability to be prepositioned in different strategic
regions
Replenishment of allocation for the People's Survival Fund pursuant Climate Change Commission or Department of
to the Climate Change Act of 2009 (RA 10174) Finance to ensure optimal utilization; DBM to
ensure prioritizalion
Increase LGU funding for health programs from increased IRA DBM, in coordination with its Technical
allocation pursuant to the Mandanas Case ruling Working Group34
Conduct of capacity building and continuous learning programs, CSC, DAP, Local Government Academy
including the use of e-learning platforms and digital upskilling
Investment of ICT resources and capability for online and remote DBM to provide guidance; All agencies to
govemment operations (e.g., laptops, internet connectivity, etc.) execute
Continued support to DICT programs DBM to provide budget; All agencies to
coordinate with DICT
'' 'I/inc Is iso official ironic tel/hr this l'IVG. The ,,ien,beis are: 1)1/Al (Lc lend), DILG, NEI),f, 041', I'COO. and CXC.
Page 71
Conduct of capacity building and awareness projects on cyber risks in DICT, National Privacy Commission,
everyday life of Filipinos Department of Justice
Expansion of the National Effort for Harmonization of Efficiency Anti-Red Tape Authority (ARTA), in
Measures of Inter-related Agencies Project to cover other sectors coordination with the Project's lead builders 35
and the ARTA-EODB Advisory Council 36
Conduct of the National Values Formation Program National Commission for Culture and the Arts,
CSC, with inputs from other government
agencies and the private sector
Enhanced risk mitigation in preparation for the 2022 National and COMELEC
Local Elections
Social development
Heal!I, and nutr lion
PROGRAM DESCRIPTION RESPONSIBLE AGENCIES

Operational budgets of government hospitals, especially those involved in DOH
COVID-19 treatment, prevention, and control of other infectious diseases;
emergency preparedness and response; and Quick Response Fund
• Increase the operational budget of the Philippine General Hospital (PGH) University of the Philippines-PGH
• For2021
Expand spending on medical infrastructure: new hospitals, health, and critical DOH, LGUs
care facilities, laboratories, as well as acquisition of medical equipment,
medevac and ambulance vehicles, and stockpiling of PPEs, test kits,
medicines, vaccines, etc.
Sustain budget for regular health programs (e.g., Immunization Program, DOH, LGUs
Maternal, Newborn and Child health, Tuberculosis, HIV-AIDS, Family Planning,
etc.)
Incentivize, subsidize, and support researchers and research institutions who DOST-Philippine Council for Health
will engage in research and development related to development of test kits, Research and Development, DOH,
• medical equipment, vaccines (e.g., COVID-19 vaccine), medicine, and others. Commission on Higher Education
(CHED), higher education institutions
Increase budget to improve health data systems (Unified Health Data DOH, LGU
• Dashboard for disease surveillance and monitoring; and Health Information
Exchange)
Sustain budget for indigents under PhilHealth to cover emerging or re-emerging Philhealth
diseases
Draft the National HRH Masterplan, the long-term strategic plan for the DOH
• management and development of HRH to include contingency plans for
national public health emergencies (i.e., recruitment for medical reservists), and
the National Health Workforce Registry
Ensure budget for the implementation of the UHC Law and First 1000 Days DOH, Philhealth, National Nutrition
Council
Of/in' u/i/jr Kteci,('i'r Sane/wi. ART,!. 0//lee a//he Cahi,iei Seen/arias, fill/il. NEI)A. 1)/CT fl/IC, and flAP.
C;oavosed o/'lhe DT/ Secretary (Chair). ARIA l)isrcsur (k,icsvl (Vice-Chair). DOE. fl/CT and DILG Secretaries. ,a,d Iii's) i'epi'esesi(atr'es
fs'oai the pro/c sec/ar as ,iiciil/,cec.
Pugo 72
Social protection

Various programs: Assistance to Individuals in Crisis Situations, distribution of DSWD, LGUs
food and non-food items, livelihood assistance grants, and supplemental
feeding for daycare children
Quick Response Funds OSWD
Integration of savings mobilization as a component of all social protection DSWD
programs
For 2021
Provision of automated teller machine cards to senior citizens DSWD, LGUs
Education
School-based feeding program DepEd
Improve existing online platforms DepEd, CHED, TESDA
Tap the ICT for the Alternative Learning System (ICT4ALS) Project of DepEd DepEd
and UNICEF
Realign funds for teacher training to enable them to teach flexible learning DepEd, CHED, TESDA
options and blended learning
For 2021
Develop learning and teaching modules for flexible learning options, and radio DepEd, CHED, TESDA
or TV classes, including e-learning materials (modularized for students,
teachers, and parents)
Provide communicationfinternet allowance for teachers and StuFAP DepEd, CHED, TESDA
beneficiaries
Expand the Government Assistance to Students and Teachers in Private DepEd

Education (GATSPE) coverage to elementary
Expand DepEd's Computerization Program DepEd
Develop a national e-learning platform (web-based and app-based) DepEd, CHED, TESDA, PRC, DICT
Increase budget for the Universal Access to Quality Tertiary Education and CHED, TESDA
Technical-Vocational and Education and Training
Realign funds for the improvement of information technology (IT) infrastructure TESDA
(both hardware and software) for the TESDA Online Program courses
Develop a Learning Management System to easily track learner progress and TESDA
performance
Procure courses from other online institutions and develop future-ready courses TESDA, CHED
in TESDA Online Program and MOOCs of higher education institutions (HEI5)
Labor and employment
Paqe 73
Conduct skills retooling programs through flexible and blended training TESDA, DOLE
arrangements to improve employability of displaced workers
Tap and fast-track the implementation of the Tulong Trabaho Fund TESDA
Expand unemployment benefits to include temporadly laid off workers SSS, DOLE
Expand awareness and coverage of the Employees Compensation Employees' Compensation Commission,
Program DOLE
Institutionalize the provision of PPEs by employers to prevent spread of DOLE
COVID-19 and other viruses.
For 2021
Improve social protection programs and income support systems through 555, DOLE
unemployment insurance, emergency employment, and wage subsidies
Intensify financial literacy programs for the vulnerable sector DOLE, PESOs
Issue training vouchers to individuals, which can be availed through TESDA
institution-based, enterpñse-based, or online modalities for the upskilling
or retooling of learners and workers (similar to the Skills Future Singapore
model)
Establish additional MTLs and equip all these laboratodes with computers TESDA
and internet connectivity
Housing and urban development

For 2021
Housing Rental Subsidy Program for low-income lSFs Department of Human Settlements and
Urban Development, National Housing
Authodty
Pane 74
Migration

Retooling of skills or upskilling for repatriates TESDA, National Reintegration Center for
OFWs
Increased fund allocation for reintegration programs
For 2021
Increased budget of OFW-Enterprise Development and Loan Program OWWA, DOH
Budget for the deployment of more overseas officers to improve the ratio
of the Overseas Workers Welfare Administration (OWA) officers vis-à-vis
OFWs
Additional funding for repatriation assistance
Funding for migrant health programs, including mental health
Increased operating funds for welfare-related and emergency assistance
programs/activities at posts
Environment and natura' resources

• Provide training on health and safety measures (e.g., proper use of DENR and DOH
PPEs) for wildlife caretakers and waste collectors/handlers
• Improve management of infectious wastes during COVID-
19 outbreak (i.e., handling and treatment protocols or strategies to
manage wastes during virus outbreaks)
• Establish temporary containment, quarantine, or isolation facilities for
infected hospitals wastes
• Conduct mass media campaign on proper disposal and management
of health care wastes, especially masks and gloves
• Implement proper wildlife handling protocols during wildlife turnover to
minimize the risk of transmission of diseases or viruses from wildlife
to humans
For 2021
• Construct and accredit additional TSD facilities for handling DENR, LGUs, and private sector.
pathogenic or infectious wastes, especially in areas where such
facilities are very limited
• Conduct regular sanitation of public places such as wet markets.
parks, and informal settlements
• Provide technical assistance to LGUs in establishing clustered MRFs
and SLFs with proper health and safety protocols to ensure that no
untreated healthcare wastes are processed in these facilities
• Establish additional wildlife sanctuaries for rescued wildlife with l'1Et
trained wildlife caretakers on proper handling protocols
• Carry out communication, education, and public awareness campaign
against encroachment and illegal wildlife trafficking
• Create an integrated knowledge management system for more
transparent and better access to information on healthcare wastes
(e.g., use of geo-informatics)
Pacie 75
• Implement a comprehensive bioprospecting and biotechnology OENR, DOH, DOST, DA, and the
program to facilitate discovery and development of novel compounds academe
and derivatives for pharmaceutical purposes
• Conduct R&D programs on: (a) capacity and needs assessment of
health care facilities, especially govemment hospitals to manage
health care wastes; (b) assessment of existing technologies or
processes on waste storage and treatment to manage new viruses;
and (c) early detection and rapid response to manage new viruses
and other organisms, and its relationship to the environment
• Agroforestry development programs in COVID-19 affected rural DENR, DA, and DTI
communities to support food production and watershed protection
• Biodiversity-friendly and sustainable alternative livelihood programs
for local communities to avoid over-extraction of natural resources
• Forest protection, reforestation, watershed rehabilitation
and management activities especially in critical
watersheds (e.g., Enhanced-National Greening program, enforcement
activities through sustainable forest management and integrated
watershed management; and pollution control programs of water
bodies such as rivers, and lakes, including wastewater treatment to
sustain availability of freshwater resources)
• Provide additional budget support for digital technologies or computer
applications for forest management (surveying, mapping, and
planning), including its knowledge management systems
• Implement water conservation and efficiency measures (e.g. National Water Resources Board
establishment of rainwater harvesting, water reuse and recycling,
upgrading/retrofitting of water supply system, excess floodwater
storage, among others)
• Implement Water Demand Management Program through: (a)
conduct of intensive public education campaign on water demand
management; (b) formulation of policies and strategies for efficient
water supply system; and (c) conduct researches on water storage
and collection system, including efficient irrigation
• Conduct information campaigns on water conservation in traditional
and social media platforms
Pane 76

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'0 V.FF 10 1 A &.

REPUBLIC OF THE PHILIPPINES

NATIONAL BUDGET MEMORANDUM No. 136

For : All Heads of Departments, Agencies, Bureaus, Offices, Commissions,

Subject : BUDGET PRIORITIES FRAMEWORK FOR THE PREPARATION

2.0 MACROECONOMIC AND FISCAL ENVIRONMENT OF THE FY 2021 BUDGET

2.1 Macroeconomic Assumptions

FOREX (P/US$) 51.8 50 54

Growth of Goods Export (%) 2.7 (4.0) 5.0 5.0

The country's strong balance-of-payments position backed by foreign exchange

2.2 National Government Fiscal Environment, FYs 201 9-2022

2.2.1 Fiscal Position, FYs 2019-2022

The National Government's fiscal performance for 2019 ended up strong

Meanwhile, disbursements increased by 11.4 percent YoY to reach P3,797.7

Over the medium-term, the country's fiscal position is projected to be

to 2022, revenues are projected to be down to 13.6-13.8 percent of GDP,

Table 2. Fiscal Aggregates, FYs 201 9-2022

2.2.2 Cash-Based Budget Ceiling and Fiscal Space for FY 2021

Table 3. Derivation of FY 2021 Cash-Based Budget, in billion pesos

Less: Prior Years' Obligations 286.3 340.8 54.6 19.1%

Current Year Disbursements 3,889.0 4,016.7 127.7 3.3%

Add: Obligations to be paid in the 211.0 318.5 107.4 50.9%

As shown in Table 3 above, the DBCC-approved total disbursement program

3.0 EXPENDITURE DIRECTIONS FOR FY 2021

As a transition towards the implementation of the Supreme Court decision on the

Specifically, the National Government Agencies (NGAs) shall focus on standards

The Government remains steadfast in achieving the country's Sustainable Development

4.1 Composition of Tier 2 Proposals

4.1.2 Discontinued P/A/Ps or may no longer be completed in FY 2020 as identified

A list of Tier 2 inclusions by allotment class are detailed in Annex A of

4.2 Formulating Tier 2 Proposals

4.2.4.1 Available fiscal space set by the DBCC

The P/A/Ps to be included in the budget must be implementation-ready,

Other necessary information like M&E plans and risk management

If preparatory works are still required prior to actual execution,

4.2.4.3 Agency Absorptive Capacity

4.2.4.4 Consistency with the Priorities in the BPF

4.2.4.5 Indicative Annual Procurement Plan (APP)

4.4 Reviewing Entities

4.4.1.1 Projects covered by the Build-Operate-Transfer (BOT) law and its

4.4.3 The Medium-Term Information and Communication Technology Harmonization

5.0 For immediate compliance.

Congress of the Philippines (CONGRESS) 20997.668

Office of the President (OP) 5,259,021

Office of the Vice-President (OVP) 460,952

Department of Agrarian Reform (DAR) 7,854,142

Department of Agriculture (DA) 42846,974

Department of Budget and Management (DBM) 1.366,875

Department of Education (DepEd) 475,424,055

State Universities and Colleges (SUCs) 54,805,799

Department of energy (DOE) 1,308.447

Office of the Secretary

Department of Finance (DOF) 16,267,009

Department of Foreign Affairs (DFA) 18,939,232

Department of Health (DON) 70,026,545

Department of Information and Communications Technology 4,226,114

Department of the Interior and Local Government (DILG) 1 94.2 73.162

Department of Justice (DOJ) 20,323,231

Department of Labor and Employment (DOLE) 10,719, 94 8

DND-Level Central Adm. & Support 2,472,577