"state of economic emergency", to be studied

By Nidz Godino

 "It will be studied thoroughly through the Office of the Executive Secretary," acting presidential spokesman Martin Andanar  said Malacañang would look into possible declaration of  state of economic emergency in light of the impact of the series of fuel price hikes and the ongoing conflict in Ukraine.

At the Palace briefing, Andanar said declaration of state of economic emergency would be studied through the Office of the Executive Secretary.

According to him, the economic team of President Rodrigo Duterte  proposed government interventions to ease effect of fuel price hikes and the conflict in Ukraine on the country.

He said the team would assess if these would be enough to address  economic issue.

According to Andanar, a "full-blown war" or "world war" may trigger the declaration of an economic emergency.

Asked about specific situations that would result in the declaration of an economic emergency such as reaching a certain threshold for fuel price,  Andanar said it would require a meeting among Cabinet members.

"It will require the full Cabinet and it will require the security cluster, the economic cluster to convene on this…and of course, the President will be the one who would chair this meeting…well, it's not yet happening," he said.

Asked if the government could tap into energy resources in the Recto Bank to help cushion  impact of the supposed crisis, Andanar said  country would need the help from private companies.

"When it comes to  oil exploration, no one government can do this alone, we need  expertise of other big businesses, expertise of other countries, nations that are used to the exploring of energy from the earth" Andanar said.

Asked about which companies President Duterte wants to take over the gas exploration project in Recto Bank as well as  details of the supposed existing joint exploration agreement with China, Andanar would defer the matter to the Department of Energy (DOE).

The government already allotted P2.5 billion for the fuel subsidy for PUV drivers and operators and P500 million for farmers and fishers to ease impact of the price hikes on their livelihood.

National Economic and Development Authority (NEDA) Undersecretary Rosemarie Edillon said they are considering  excess tax collection in March to increase  fuel subsidy budget to P5 billion for PUVs and P1.1 billion for agricultural workers.

"We can use these in funding unprogrammed appropriations…so, we think there will be an excess collection…we will source additional budget from here," she said.

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