Economic Managers Support KALINGA Bill

Pinagtibay ng economic managers ang suporta sa panukalang tutugon sa epekto ng mataas na presyo ng langis.

Economic Managers Support KALINGA Bill

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The country’s economic managers on Tuesday threw their support behind the KALINGA bill, describing it as a comprehensive and timely response to rising fuel prices and global market disruptions.

The expressions of support were made during the hearing of the House Ad Hoc Committee on Legislative Energy Action and Development (LEAD), led by Committee on Ways and Means Chair Marikina 2nd District Rep. Miro Quimbo.

Agencies underscored the urgency of a coordinated national response to the energy-driven economic strain.

Filed by Speaker Faustino Dy III and Majority Leader Sandro Marcos, House Bill No. 8834 seeks to establish the KALINGA Program, or the Komprehensibong Alalay sa Livelihood, Inflation, Negosyo at Goods Assistance.

It is designed as a whole-of-government emergency response framework that ensures energy and essential goods supply security, delivers targeted and time-bound assistance to vulnerable sectors, and activates automatically once key crisis indicators are met.

Acting Secretary Rolando Toledo said the Department of Budget and Management (DBM) supports the measure, as it will sustain economic activity amid global oil shocks.

“The DBM supports the KALINGA bill, which aims to address the national emergency caused by global market disruption from conflict in the Middle East, with energy security at risk and rising fuel prices affecting vulnerable communities,” Toledo said.

He noted that the bill would grant the President limited emergency powers to ensure the continued delivery of essential services, protect livelihoods and sustain economic activity, while establishing a coordinated framework for rapid resource mobilization and timely relief.

For its part, the Department of Finance said the KALINGA bill would allow the government to cushion the economy from fuel-driven inflation and supply shocks.

“The Department of Finance supports the KALINGA Act, which seeks to institutionalize a comprehensive national emergency response framework to mitigate economic instability, much like the Bayanihan laws served as a state shield during the Covid-19 pandemic,” Finance Undersecretary Karlo Fermin Adriano said.

“The KALINGA Act functions as a safeguard against the cascading effects of fuel-driven inflation and energy supply disruptions,” he added, noting that the measure would enable targeted assistance to low-income families, farmers and small businesses.

The Department of Economy, Planning, and Development (DEPDev) said the bill would strengthen the government’s ability to respond decisively to the crisis.

“DEPDev generally supports the objectives and provisions of the draft bill, as we believe that it will fortify the executive’s authority and capacity to address the emergency situation,” DEPDev Undersecretary Joseph Capuno said.

The Bangko Sentral ng Pilipinas (BSP) likewise expressed support, while emphasizing the need to anchor interventions on fiscal discipline and accountability.

“The BSP generally supports the objectives of the KALINGA bill … [and] recognizes the bill’s intent to establish a coordinated whole-of-government framework that enables the timely and flexible deployment of policy measures in response to external shocks,” BSP Department of Economic Research Director Dennis Bautista said.

“The BSP further acknowledges the policy objective of strengthening the government’s capacity to manage inflationary pressures and supply disruptions … in a manner that supports macroeconomic stability and protects consumer welfare,” he added.

Economic managers agreed that the proposed KALINGA framework would allow the government to act swiftly, deploy targeted support, and stabilize the economy amid volatile global fuel markets.

The LEAD Joint Committee is currently consolidating inputs from agencies and stakeholders as deliberations continue on the KALINGA bill, which is being positioned as the government’s central legislative response to the ongoing energy crisis. (PNA)