EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Senate
(©ffite of tl)c jg>ffretarp
First Regular Session
20 MAY-4 P 2 *46
SENATE
s. NO. 1474
RECEIVED BV:
Introduced by Senator Ralph G. Recto
AN ACT
PROVIDING AN ECONOMIC STIMULUS STRATEGY FOR THE EFFECTS OF THE 
CORONA VIRUS DISEASE (COVID-19) AND APPROPRIATING FUNDS 
THEREFOR
EXPLANATORY NOTE
The impact of the coronavirus disease (COVID-19) pandemic, both in terms of 
human life and economic growth, is quite staggering. Thus, this moment in our history 
is touted to be man's darkest hour perhaps, the bleakest period in this generation's 
lifetime.
Covid-lS Cases
On the health front, as of May 3, 2020, about 3,356,205 cases have been 
recorded by the World Health Organization (WHO) across the globe, of which 238,730 
people have died. In the Philippines, as of May 1, 2020, the bulletin issued by the 
Department of Health (DOH) revealed that the COVID-19 pandemic has affected 9,223 
individuals and caused the death of 607. The death toll suffered by the globe from the 
Ebola Virus Disease for two years has been eclipsed tenfold by the COVID-19 casualties 
in a span of less than four months.


The Economic Impact
On the economic front. Individual and collective efforts to mitigate the
transmission of the virus and to reduce the number of casualties have likewise caused
the stagnation of global economic activity, in a magnitude unknown since the
depression of 1936. Just recently, an updated World Economic Outlook of the
Intemadonal Monetary Fund (IMF) has projected the contraction of the global economy
by 3% m 2020, much worse than the economic recession suffered during the 2008-
2009 Global Financial Crisis. The International Labor Organization predicted that global
unemployment figures will reach 25 million for Fiscal Year (FY) 2020, with loss of labor
income amounting to as much as $3.4 Trillion. Estimates from the Philippine Institute of
Development Studies (PIDS) show that the Philippines could suffer a 12.9% contraction 
of its economy.
The Problem of Uncertainty and Lack of Confidence
While short-term survival and mitigation of COVID-19 fatalities are paramount, 
the Philippines would eventually need to address another challenge posed by the 
pandemic: the problem of uncertainty and lack of business confidence.
Global uncertainty in times of the COVID-19 pandemic, according to the World 
Uncertainty Index, is the highest in six decades, exceeding the global uncertainty 
caused by the US-China trade conflict, the European debt crisis, and the US-Iraq War 
Uncertainty in times of pandemic affects the minds of policymaker, business owners 
and ordinary citizens alike. The dramatic and unexpected impact on the economy has 
dampened the confidence of business in its ability to survive and eventually turnaround. 
This is aggravated by consumers whose fears of the sustainability of future incomes 
lead them to cut expenditures to the barest minimum and therefore creating problems


in industries considered non-essential but nevertheless account for a substantial 
production in the economy.
The effect can be as trivial as small businesses imposing a moratorium on hiring 
new personnel; but it could also be as critical and complicated as losing billions of 
dollars' worth of foreign direct investments from capital flight, or depleting foreign 
currency reserves due to displacement of migrant workers abroad. For consumers, it 
could mean postponing travel, cutting on the purchase of personal effects like clothes, 
shoes, bags and the like or avoiding restaurants and curtailing entertainment. If and 
when the disease is brought under control, the government has to take the lead in the 
Aegean task of reducing socioeconomic uncertainty towards creating confidence in the 
economy.
Objectives of the Recovery Program
Such return to normalcy would require the realization of two objectives. First, it 
will mean the reactivation of disrupted economic activities, reopening of shuttered 
industries and enterprises, and reemployment of displaced workforces. Second, and 
most importantly, return to normalcy must come with the development of stronger 
mechanisms to prevent and control disease outbreaks and epidemics like COVID-19 in 
the future.
The bill has essentially adopted the proposed consolidated bills filed in the House 
of Representatives, while incorporating our amendments to enhance the capacity of the 
stimulus package to respond to the impact of COVID-19.
Strengthening the National Health System
This proposed measure attempts to contribute in the efforts to control the 
COVID-19 pandemic today and to stimulate the economy. It seeks first to strengthen
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the capacity of the Philippine healthcare system to respond to disease outbreaks and
epidemics. Under this bill, massive investments will be on health programs including the
provision of sufficient personal protecflve equipment (PPEs) and other medical supplies,
establishment of testing centers in every province, expansion of hospital bed capacity,’
and construction of isolation and quarantine centers. Adequate medical and allied
medical workers will be hired and granted commensurate incentives. Funding for
research will be given priority and incentives provided for the discovery of a cure for 
COVID-19.
Financial Assistance to Filipino Families
To sustain the gains from government's response to the COVID-19 pandemic to 
provide Filipino families with addiHonal resources to accelerate recovery and' to 
sbmulate the economy through household spending, this proposed measure grants 
addibonal flnancial assistance to Filipino families, which ranges from Hve Thousand 
Pesos (P5,000) to Eight Thousand Pesos (P8,000). This financial assistance shall be 
subject to terms and conditions similar to those governing the Emergency Subsidy
Program as provided in Section 4(c) of Republic Act No. 11469, otherwise known as the 
Bayanihan to Heal as One Act.
Continuance of Income
The bill will protect the incomes of workers as it grants wage subsidies to 
critically-impacted enterprises. Those displaced workers will have access to a full-cycle 
e^loyment facilitation service from government agencies. Overseas Filipino Workers 
(OFWs) Who Will be repatriated or those who will not be able to leave the country under 
renewed contracts abroad will be given unemployment benefits. Those in the informal 
sector like the freelancer and the self-employed will receive ameliorabon benefits for
*"0 (2) m0nthS- 1116 535 WNI also P^vide an unemployment beneht to employees who 
have been involuntarily separated from service due to the COVID-19 pandemic We


have also added a provision where government will continue to pay salaries/wages of 
Contract of Service (COS), Job Order (JO), Institutional COS Workers even if not 
allowed to work for the entire duration of the quarantine.
Employees who contract COVID-19 may avail of sick leave benefits and SSS will 
compensate business entities for such salaries paid, up to P120,000 per individual, in 
excess of their respective accumulated sick leaves. However, for government employees 
who contract COVlD-19, they shall continue to receive their salaries even after the 
exhaustion of their accumulated sick leaves. There is no need for GSIS intervention as 
the extended sick leaves may be funded from the existing regular salaries of the 
employee concerned included in the Personnel Services budget of the agency.
Regulatory Relief for Industries
Regulatory Relief for Industries includes the suspension of fees and charges by 
the President for a period of six (6) months through an executive order. The Anti-Red 
Tape Authority (ARTA) shall prepare a list of these non-tax and non-duty fees and 
charges imposed on enterprises. Deadlines for all filings and payments due shall be 
extended with no additional interests, fines or penalties. Regulatory agencies shall 
simplify and shorten renewal and new business registration processes.
Tax Relief Incentive Package
Taxes are the lifeblood of the nation, but unfortunately, also a burden to its 
people. To ease such burden during this time of COVID-19 pandemic, several countries 
are now considering tax breaks as a form of economic stimulus and as a means of 
extending relief to the working class, entrepreneurs and business enterprises. In our 
junsdiction, it is only fair, just and reasonable to also grant a tax relief to the working 
middle class, self-employed individuals, professionals, micro, small and medium-scale


enterprises (MSMEs), and even large companies which are severeiy affected by the 
pandemic.
The bill introduces severai tax relief in the form of income tax exemption to self- 
employed individuals, other professionals, MSMEs and their empioyees for one (1) year, 
and three (3) years for critically-impacted industries, and provides a three (3)-year 
period of progressive corporate income taxation for other corporations.
Likewise, this bill recognizes the heroic, fearless and selfless efforts made by our 
frontliners by granting income tax exemption to medical professionals and other 
healthcare workers and value-added tax (VAT) exemption for services rendered by 
medical professionals in COVID-19 reiated cases for a period of two (2) years.
To hasten the importation and lower the cost of drugs and medicines, medical 
supplies, medical devices and equipment which are necessary for COVID-19 response, 
this bill seeks to exempt the sale and importation of these goods from the appiicable 
duties, fees and taxes for taxable years 2020 and 2021.
This bill seeks to reward also the Good Samaritan by incentivizing the donors in 
the form of additional deduction from gross income and donor's tax exemption of their 
donations and contributions such as relief goods, medicines, medical supplies and 
equipment, quarantine faciiities, and other essentiai goods and services for COVID-19 
response.
To incentivize hospitals which are now operating beyond their full capacity due to 
the exponential increase in the number of COVID-19 patients, this biil seeks to grant 
them income tax exemption for a period of two (2) years. Many countries were caught 
unprepared for this pandemic, thereby causing shortage in medicai supplies, medical 
devices and equipment, and quarantine faciiities necessary for COVID-19 response, and 
therefore to encourage enterprises to engage in the manufacture of these supplies,
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equipment and facilities, this bill seeks to grant additional allowable deductions for 
certain directly related costs and expenses for taxable years 2020 and 2021.
Economic experts are now predicting an economic recession in many jurisdictions 
around the globe brought about by the enforcement of lockdown as a control measure 
to contain the virus, and thus to help MSMEs and critically-impacted businesses, this bill 
seeks to allow a net operating loss carry-over (NOLCO) of six (6) years for losses 
incurred in 2020 and 2021; suspend for three (3) years the imposition of minimum 
corporate income tax (MGT); mandate the LGUs to waive interest, surcharge and 
penalties for delayed payment of taxes, fees and charges for taxable year 2020; extend 
the deadlines for the filing of various tax returns and the payment of taxes for taxable 
years 2019 and 2020 for a period of ninety (90) days; and suspend tax audit for one (1) 
year.
The summary matrix of the Tax Relief Incentive Package shall be as follows:
Tax Relief and Incentives
Type of Tax
Who
What
When
Personal income 
tax
Compensation income 
earners in MSME
Tax-exempt
2020
Medical professionals and 
healthcare workers
Tax-exempt
2020-2021
Self-employed and 
professionals with less than 
P3M gross sales/receipts
Tax-exempt
2020
Corporate income 
tax
Domestic and resident 
foreign corporations
Taxable Income Tax Rates
2020-2022
Not over P800,000 
15%
Over P800,000 
P120,000 +
but not over P2M 
20% of the
excess over 
P800,000
Over P2M but not P360,000 + 
over P8M 
25% of the
excess over P2M
Over P8M 
PI,860,000 +
30% of the 
excess over P8M


Type of Tax
Who
What
When
MSMEs
Tax-exempt
2020
Critically-impacted business 
(travel, tourism, trade)
Tax-exempt
2020-2022
Proprietary hospitals and 
non-stock non-profit 
hospitals
Exempt
2020-2021
VAT
Services rendered by medical 
professionals for COVID-19
Exempt
2020-2021
Duties, fees, taxes
the sale or importation of 
drugs, equipment, supplies 
for COVID-19
Exempt
2020-2021
Gross income 
deduction/
Donor's tax
Donations or contributions 
actually paid or made for 
essential goods and services 
for COVID-19 response
200% deduction 
from gross income;
Donors tax exempt
Depreciation
allowance/
additional
deduction
Businesses or enterprises 
engaged in the manufacture 
of medical supplies, medical 
devices and equipment, and 
construction of quarantine 
facilities needed for COVID- 
19 response
a) Additional twenty percent (20%) 
depreciation allowance for building 
and forty percent (40%) for 
machinery and equipment;
b) Fifty percent (50%) additional 
deduction on direct labor expense 
incurred in the taxable year;
c) Fifty percent (50%) additional 
deduction on domestic input 
expense incurred in the taxable 
year
2020-2021
Net operating loss 
as deduction from 
gross
Net operating loss of the 
business or enterprise
Carried over as a deduction from 
gross income for the next six (6) 
consecutive taxable years 
immediately following the year of 
such loss
2020-2021
Minimum Corp 
Income Tax 
(MCn)
Suspended
3 years
Interest,
surcharge,
penalties
Delayed payment of business 
taxes, real property taxes, 
other taxes, fees and charges
Waived
2020


Sectoral Interventions
The government shall extend assistance to the following sectors badly hit by the 
economic slowdown as a result of the quarantines:
a) The MSMEs and Agri-Fishery. The Small Business Corporation (SB Corp) in the 
case of MSMEs and the Agricultural Credit Policy Council (ACPC) in the case of 
agri-fishery enterprises shall provide assistance through a loan program with 
increased loanable amount, reduced interest rates and extended loan terms;
b) Assistance to farmers and fiisherfolks shall also be given in the form of cash 
assistance, interest-free loans, subsidized crop insurance, agri and fisheries 
inputs and equipment; and
c) The tourism industry and export and import industries, through the Landbank of 
the Philippines (LBP) and the Developmeent Bank of the Philippines (DBP), shall 
receive assistance through the grant of interest-free loans and loan guarantees.
Trade policies such as zero-tariff rates on essential goods, price and fee 
regulation shall also be taken.
Guarantiees and Interest-free Loans
This bill provides for an expanded guarantee program through the Philippine 
Guarantee Corporation (PGC) such as increased maximum loan guarantee; reduced 
eligibility requirements, and guarantee fees.
Interest-free loans shall be offered by the LBP and DBP for MSMEs, agri-fishery 
enterprises, primary tourism enterprises, export and import industries, and Enhanced 
Community Quarantine (ECQ) non-essential businesses and other affected sectors.


Enhanced Build/ Build/ Program
The Enhanced Build, Build, Build Infrastructure Program amounts to P650 Billion 
and will include projects in Universal Health Care (UHC), education and food security. 
It will also include the construction of multi-purpose service facilities that will serve as 
quarantine center. The construction of new laboratories shall also be implemented. 
These projects are in addition to the flagship infrastructure projects of the national 
government.
Stimulus through Monetary Policy
The Bangko Sentral ng Pilipinas (BSP) and Securities and Exchange Commission 
(SEC) will pursue relaxation of regulatory and statutory restrictions and requirements 
for not more than ten (10) years to encourage banks to extend more loans. Specifically, 
the BSP is directed to adopt flexible monetary policy to include lower policy interest 
rates, cut reserve requirement ratio, purchase treasury and corporate bonds, offer 
concessionary loans to companies in priority industries, and extend rediscounting facility 
that will allow BSP advances to banks using eligible papers of bank borrowers as 
collateral.
Reactivation of the Special Purpose Vehicle Act
The provisions of RA 9182 otherwise known as the Special Purpose Vehicle (SPV) 
Act is revived under the bill. Hence, non-performing assets (NPAs) of banks may be 
acquired with tax exemptions as incentives. The critically-impacted businesses which 
are indispensable to the national interest or security as may be determined by the 
Department of Trade and Industry (DTI) and the National Economic and Development 
Authority (NEDA) shall be given priority in the bailout or capital infusion through the 
SPV.
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Empowerment of the Local Government Units (LGUs)
A new chapter has been added to provide LGUs with the wherewithal to implement 
measures to address the COVID-19 pandemic and its aftermath. To grant additional 
sources of funds, the bill authorizes qualified LGUs to transfer unexpended balances of 
local trust funds held by the LGUs for purposes that have already been completed or 
abandoned to their respective General Funds to be appropriated for programs and 
projects in response to the COVID-19 pandemic. Moreover, the bill grants an additional 
financial subsidy equivalent to one (1) month Internal Revenue Allotment (IRA) Share 
to be provided to all provinces, cities and municipalities to be used for the same 
purpose.
Financing, appropriations and validity
The National Government is authorized to breach the FY 2020 target for budget 
deficit of up to 10% of Gross Domestic Product (GDP), which level may be extended 
until 2022. However, it shall report to Congress when the ceiling is breached with the 
presentation of justification and remedial measures undertaken.
A total of PI.205 Trillion is necessary for the programs and projects to be 
implemented under this bill. Of this amount, P555 Billion is appropriated to supplement 
the FY 2020 budget, intended for the economic stimulus package, while the amount of 
P650 Billion for the Build Build Build infrastructure program shall be included in the 
annual General Appropriations Act starting FY 2021 until FY 2023.
The DOF is authorized to direct the Bureau of Treasury (BTr), government 
financial institutions (GFIs) and government-owned or -controlled corporations (GOCCs) 
to issue bonds to finance programs for COVID-19 impact mitigation as provided in this 
bill.
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The appropriations shall be available for release and obligation for the purposes 
specified in the bill until June 30, 2021, unless otherwise stated. However, in order to 
allow the Department of Budget and Management (DBM) to implement its Cash-based 
Budgeting System reforms, for some programs and projects that may have short 
implementation period, the DBM may issue an obligational authority that will lapse at an 
earlier date than the validity of its appropriations subject to reasonable extensions.
Ultimately, the bill seeks to save lives and protect incomes as well as strengthen 
the resilience of our socioeconomic institutions in dealing with the pandemic. These 
interventions are being sought to soften the impact of a projected economic downturn, 
and to accelerate the socioeconomic recovery of the country.
In light of the foregoing, immediate passage of the bill is earnestly sought.
RALPH G.
mcp/ezl/aim/mksbc/ejcv/mjma/mdg/jiao
12


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Senate
pi ---- -
(©ffitp of ti;? ,<?'Vcrf f,:!ry
First Regular Session
SENATE
S. No. 1474
Introduced by Senator Ralph G. Recto
AN ACT
PROVIDING AN ECONOMIC STIMULUS STRATEGY FOR THE EFFECTS OF THE 
CORONA VIRUS DISEASE (COVID-19) AND APPROPRIATING FUNDS 
THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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Section 1. Short Title. - This Act shall be known as the "Philippine Stimulus
2 
Package, Aid and Response to Coronavirus Act" or Philippine SPARC Act.
3 
Sec. 2. Declaration of Policy and Objectives. - It is hereby declared a policy of
4 
the State to extend assistance to individuals, families, businesses and communities in
5 
difficult circumstances brought about by disease outbreaks and pandemics. Towards
6 
this end, and in cognizance of the adverse impact of the 2019 Coronavirus Disease
7 
(COVID-19) pandemic, the State shall establish mechanisms to achieve the following
8 
objectives:
9 
a) Improve capacities to test, trace, isolate and treat COVID-19 cases to prevent
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further loss of lives;
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b) Bolster the capacity of the Philippine health care system to combat disease
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outbreaks and pandemics;
13 
c) Reduce the adverse impact of COVID-19 on the socioeconomic well-being of
14 
Filipinos through the provision of assistance and subsidies;


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d) Mitigate the economic cost and iosses stemming from the coronavirus disease 
pandemic;
e) Promote ease of doing business, reduce the cost of business operations and 
provide reiief and assistance to businesses and enterprises, including micro, 
small, and medium enterprises (MSMEs), agri-fishery enterprises, tourism 
enterprises, and export- and import-oriented enterprises; and
f) Build economic resilience grounded on economic inclusivity and collective 
growth.
Sec. 3. Definition of Terms. - As used in this Act,
a. 
Agri-fishery enterprise refers to any single proprietorship, partnership, 
cooperative, corporation, farmer's organization/association, or juridical 
entity engaged in the cultivation of the soil, developing and conserving 
aquatic resources and fishery areas, planting of crops, growing of fruit 
trees, raising of livestock or poultry, producing fish or other aquatic 
products, harvesting, processing and marketing agricultural and fisheries 
products, and other farm and fishery activities and practices;
b. 
Business Entity refers to sole proprietorship duly registered with the 
Department of Trade and Industry (DTI), partnership duly registered with 
the Securities and Exchange Commission (SEC), corporation duly 
organized and existing under Philippine laws, branch of a foreign 
corporation duly licensed to do business in the Philippines, and 
cooperative governed by the Cooperative Code of the Philippines, as 
amended;
c. 
Community Quarantine (CQ) refers to the enhanced community 
quarantine imposed in the entire Luzon area under Presidential 
Proclamation No. 929 dated 16 March 2020, as may be extended or 
modified pursuant to such other laws, presidential proclamations or 
executive orders that may be subsequently issued or promulgated for the 
purpose of containing the spread of COVID-19;


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d. 
Critically-Impacted Business refers to CQ Non-essential Business Entities 
which belong to, or operate in industries including tourism, air 
transportation and trade, that have been either directly impacted by the 
disruption in travel and the transport of goods and services, or 
significantly displaced such that their liabilities have become more than 
their assets or are generally unable to pay or perform their obligations as 
they fall due in the ordinary course of business as a result of the COVID- 
19 pandemic, as jointly determined by the National Economic and 
Development Authority (NEDA) and the DTI;
e. 
Daily Wage Earner refers to workers or employees paid on the days they 
worked and on unworked regular holidays;
f. 
Displaced Worker refers to workers whose employment is terminated, 
without assurance of re-employment to the same employer, by reason of 
the suspension of operations of the employer's business establishment 
due to the CQ;
g. 
Essential Business Entity (EBE) refers to business entities considered 
essential and allowed to operate during CQ such as those related to: (i) 
the production and sale of goods or provision of services, related to food, 
medicine, and health supplies, such as public markets, supermarkets, 
groceries, convenience stores, sari-sari stores, hospitals, medical clinics 
and laboratories, pharmacies, and drug stores; (ii) food preparation and 
delivery services, water-refilling stations, manufacturing and processing 
plants of basic food products and medicines; (iii) banks and financial 
services such as money transfer and remittance services; and (iv) utilities 
services involving power, energy, water and telecommunications;
h. 
Fiscal Stimulus refers to any increase in government spending undertaken 
to support economic growth, including temporary tax revenue losses 
arising from regulatory forbearance adopted by the government;


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i. 
Freelancer refers to a worker who is self-employed and is not necessarily 
committed to, or exclusively work for, a particular employer for a specific 
period;
j. 
Micro, small, and medium-scale enterprise (MSME) refers to any business 
activity or enterprise engaged in industry, agribusiness and/or services, 
whether sole proprietorship, cooperative, partnership or corporation 
whose total assets, inclusive of those arising from loans but exclusive of 
the land in which the particular business entity's office, plant, and 
equipment are situated, must have a value falling under the following 
categories:
At least 
Not more than
Micro 
= 
P3,000,000
Small 
P3,000,001 
P15,000,000
Medium 
P15,000,001 
P100,000,000
k. 
Negosyo Centers refer to one-stop shop centers established in provinces, 
cities, and municipalities that are mandated to promote ease of doing 
business and access to services for MSMEs, among others, pursuant to 
Republic Act No. 10644 or the "Go Negosyo Act";
l. 
Non-essential Businesses (NEB) refer to Business Entities engaged in 
businesses which are not allowed to operate during the CQ under 
applicable laws, presidential proclamations or executive orders issued or 
promulgated for the purpose of containing the spread of COVID-19;
m. 
Overseas Filipino Worker (OFW) refers to a person who is engaged or has 
been engaged in a remunerated activity in a State where the person is not 
a citizen, or on board a vessel navigating the foreign seas other than a 
government ship used for military or non-commercial purposes, or on an 
installation located offshore or on the high seas; and
n. 
Self-Employed refers to workers who render services or sell goods as a 
means of livelihood outside of an employer-employee relationship or as a 
career.


1 
Chapter 1: Health Interventions
2 
Sec. 4. Strengthening the National Health System. - The Department of Health
3 
(DOH) and all national agencies concerned shall implement health interventions that are
4 
geared towards strengthening the country's capacity to test, trace, isolate and treat
5 
COVID-19 cases. These interventions are as follows:
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a) Testing Centers. - There shall be established at least one (1) Testing
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Center in each of the province in the country: Provided, That the said
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Testing 
Centers shall conduct mass testing in accordance with the
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established protocol and using all methods available: Provided, further,
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That the Local Government Units (LGUs) or the private sector may
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establish the said testing centers: Provided, finally. That the DOH shall
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impose a simplified accreditation process to entities that shall establish the
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said Testing Centers during the pandemic;
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b) Contact Tracing. - The DOH shall intensify its contact tracing efforts using
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shared information from other national government agencies, private
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sector and civil society organizations: Provided, That all agencies under the
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COVID-19 Inter-Agency Task Force for the Management of Emerging
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Infectious Diseases (lATF) shall share all necessary and relevant
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information to the DOH and vice versa, as applicable, to expedite contact
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tracing 
procedures: Provided, further. That a monetary incentive
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amounting to Ten Thousand Pesos (P10,000.00) shall be provided to
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asymptomatic individuals who shall report to DOH of having close contact
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with a confirmed case and shall likewise volunteer to be tested for COVID-
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19 as part of the intensified contact tracing: Provided, finally. That the
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cost of testing shall be paid for by the DOH;
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c) Temporary Health Facilities. - The DOH shall continue to increase its bed
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capacity to quarantine, isolate and treat COVID-19 suspected, probable
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and confirmed individuals: Provided, That at least one (1) temporary health
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facility shall be established in each of the provinces that are considered as 
high-risk by the DOH;
d) 
Personal Protective Equipment (PPE), Medical Supplies and Medicines - 
The DOH shall ensure that all health facilities, public and private, including 
those that are temporary in nature shall have access to adequate supplies 
of PPEs, medical supplies and medicines for COVID-19 response: Provided, 
That the DOH may partner with the private sector or incentivize the same 
to ensure the unhampered supply of the said essential goods during the 
pandemic: Provided, further. That the donated PPEs, medical supplies and 
medicines to all health facilities during the pandemic shall not be included 
as a chargeable expense in a patient's hospital bill during the period of 
confinement due to COVID-19;
e) 
Human Resources for Health. - The DOH shall continue to engage 
temporary Human Resources for Health (HRH) such as medical and allied 
staff to complement or supplement the current health workforce or to man 
the temporary health facilities established and to be established in 
accordance with this Act: Provided, That the HRH to be hired on temporary 
basis shall receive compensation and allowances commensurate to the 
position they shall be hired to: Provided, further. That all HRH, public and 
private, serving in the front line during the state of calamity due to COVID- 
19, shall receive an actual hazard duty pay from the government; and
f) 
Health Information. - The DOH and all agencies under the COVID-19 lATF 
shall make all relevant and necessary information available to the general 
public. The DOH shall likewise continue to report to the public updates on 
COVID-19 during the period of pandemic: Provided, That the DOH shall 
ensure that accurate data are reported; Provided, further. That in the 
reporting of updates on cases, the report shall clearly indicate, among 
others, the daily and total number of the following:
i. 
Tests done;
ii. 
Individuals tested;


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iii. Positive or confirmed cases;
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iv. 
Negative cases;
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V. 
Pending results;
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vi. 
Recovered cases;
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vii. 
Deaths;
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viii. 
Individuals confined in hospitals, public and private;
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ix. 
Individuals in isolation facilities, public and private; and
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X. 
Individuals in quarantine facilities, public and private.
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Provided, furthermore. That the DOH shall also make available the information
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on COVID-19 spending on a rolling basis, including among others the following in
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the breakdown:
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i. DOH spending and the corresponding fund sources; and
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ii. 
Philippine Health Insurance Corporation (PhilHealth) indicative or
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actual reimbursements or benefit payments for COVID-19 claims,
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whichever is applicable.
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Provided, finaiiy. That the DOH shall also make available the status of temporary
17 
hiring of HRH on a rolling basis and their areas of deployment.
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Sec. 5. Investment on Research, Training and Post-Graduate Programs on Heaith
19 
Science and Pubiic Heaith. - The national government agencies with research grants
20 
and scholarship funds under their respective appropriations, as applicable, shall
21 
prioritize the provision of grants and scholarships for scientific research, training and
22 
post-graduate programs on public health, epidemiology, virology, and other similar
23 
fields of health science: Provided, That these national government agencies shall
24 
strengthen its partnership and cooperation with the private sector and international
25 
organizations in the conduct of research and training and assignment of post-graduate
26 
scholars to reputable universities in the country and overseas: Provided, further. That
27 
these national government agencies may increase their government counterpart fund
28 
under their existing research, training and exchange partnerships with the private
29 
sector and international organizations to accommodate more Filipinos in the program.


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Sec. 6. Incentive for Scientific Breakthrough to Address COVID-19. - The
2 
government through the DOH shall grant monetary incentive amounting to Fifty Million
3 
Pesos (P50,000,000.00) to any Filipino who shall be able to develop a scientific
4 
breakthrough or a vaccine against COVID-19: Provided, That the said breakthrough or
5 
vaccine shall undergo and pass the required clinical trials to be considered as safe for
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use by the general population.
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Chapter 2: Economic Interventions
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Sec. 7. Types of Economic Interventions. - The economic interventions shall be
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classified as follows:
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a. Transitional: Transitional interventions are economic relief that shall be
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implemented to mitigate the permanent damage by the COVID-19 crisis to
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the economy and maintain employment levels of the corresponding sector
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or industry. Transitional interventions shall be immediate, temporary and
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limited to a specific period;
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b. Sectoral: Sectoral interventions are economic relief intended for specific
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sectors or industries, such as MSMEs, tourism, agriculture and any other
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Critical Businesses. Such interventions may or may not be limited to a
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specific period; and
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c. Structural: Structural interventions are measures designed to
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accommodate any sector or industry through an institutionalized
21 
mechanism or entity. A structural intervention aims to reinforce resilience
22 
of the economy as well as the business entities in the event of future crisis
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or recession. Structural interventions shall not be limited to any specific
24 
period, unless otherwise provided in this Act.
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Sec. 8. Generai Principies of Economic Interventions. - The economic
26 
interventions provided for in this Act shall provide immediate relief to Business Entities
27 
whose operations have been directly and adversely impacted by the COVID-19 crisis.
28 
The economic interventions aim to reduce permanent damage to the economy.


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maintain employment levels and have a demonstrable capacity to support economic
2 
output and preserve the country's productive capacity.
3 
These interventions shall be guided by the following principles:
4 
a. Continuity: Relief to business entities shall be for purposes of preventing
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business closure, restoring business confidence, and reinstating operations
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of business entities to similar levels prior to CQ;
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b. Compensatory: Business Entities shall be reasonably and comparably
8 
recompensed for business expenses incurred, including wages and
9 
salaries, which would have been otherwise borne by the government
10 
during the CQ;
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c. Capacity-building: Assistance to Business Entities shall be for the purpose
12 
of building the capacity of the entities to adjust to post CQ business
13 
environment and achieving national resilience to future economic shocks
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or recession; and
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d. Proportionality: The individual and aggregate amount of the economic
16 
stimulus shall be proportionate to the national economic target and the
17 
corresponding industry economic objectives.
18 
CHAPTER 2A: Transitional Interventions
19 
Sec. 9. Financial Assistance to Families. - In addition to the Emergency Subsidy
20 
Program provided under Republic Act No. 11469, otherwise known as the "Bayanihan to
21 
Heal as One Act", the Department of Social Welfare and Development (DSWD) shall
22 
provide financial assistance to ail Filipino families: Provided, That the subsidy shall
23 
amount to a minimum of Five Thousand Pesos (P5,000) up to a maximum of Eight
24 
Thousand Pesos (P8,000): Provided, further, That the subsidy shall be computed based
25 
on the prevailing regional minimum wage rates: Provided, furthermore. That the
26 
financial assistance shall be given for a period of two (2) months: Provided, finally. That
27 
the subsidy, whether in cash or in kind, received from the current conditional cash


1 
transfer shall be taken into consideration in the computation of the financial assistance
2 
as provided for in this Act.
3 
Sec. 10. Wage Subsidies. - Wage subsidies shall be provided to Critically-
4 
Impacted Businesses, Displaced Workers, Freelancers, the Self-employed, repatriated
5 
OFWs, and all contract of service (COS), job order (JO), and institutional COS workers.
6 
a. Critically-Impacted Businesses: The Department of Labor and Employment
7 
(DOLE) shall offer wage subsidies to Critically-Impacted Businesses,
8 
amounting to at least twenty-five percent (25%) but not more than
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seventy-five percent (75%) of actual payroll costs for a period equivalent
10 
to two (2) months for purposes of employment retention: Provided, That
11 
Critically-Impacted Businesses that shall receive the maximum wage
12 
subsidy include: (i) those that have been directly impacted by the COVID-
13 
19 pandemic, such as tourism, air transportation and trade industries,
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and; (ii) those that support priority programs of the government such as
15 
the Buiid, Buiid, Infrastructure Program.
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b. To qualify for the wage subsidy, a Critically-Impacted Business Entity must
17 
retain at least ninety percent (90%) of its regular employees or workers
18 
during the duration of the subsidy.
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c. The DOLE shall provide a full-cycle employment facilitation service to all
20 
displaced workers affected by the CQ who intend to find subsequent local
21 
and overseas employment. DOLE shall assist the beneficiaries to increase
22 
their employability by providing employment coaching and technical
23 
training with a stipend equivalent to the applicable minimum wage rate:
24 
Provided, That those who will complete the training shall be referred for
25 
employment.
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d. The DOLE shall provide wage amelioration directly to Freelancers and the
27 
Self-employed through an open-application window system: Provided,
28 
That the amount of wage amelioration shall not be more than seventy-five
29 
percent (75%) of the applicable minimum wage rate and only for a
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maximum period of two (2) months.
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e. 
The DOLE shall provide unemployment benefits to OFWs who were 
repatriated, whether voluntarily or mandatorily, as a result of COVID-19, 
to aid such OFWs in job search: Provided, That the maximum amount for 
such OFW unemployment benefits shall be equivalent to seventy-five 
percent (75%) of the average wages of OFWs in the country of 
employment for the same or similar work immediately prior to 
repatriation, until the recipient OFW finds gainful employment but only for 
a period not exceeding two (2) months.
f. 
The National Government shall provide wage subsidy, as exception to the 
"no work, no pay" principle, to all contract of service (COS), job order 
(JO), and institutional COS workers, including third party service providers 
such as janitorial, security, and other support services whose services are 
engaged by the Executive, Legislative and Judicial Branches, including 
Constitutional Commissions, state universities and colleges (SUCs), local 
water districts (LWDs), government-owned or -controlled corporations 
(GOCCs), government financial institutions (GFIs) and LGUs who will not 
be required to report for work due to work suspension and those who are 
not part of the agency skeletal workforce: Provided, That the amount of 
wage amelioration shall be equivalent to their corresponding salary or 
wage for the entire duration of the ECQ period: Provided, further. That 
the funds required for this purpose shall be charged against the respective 
budgets of the government agencies concerned.
The Social Security System (SSS), Bureau of Internal Revenue (BIR), and DOLE 
shall establish a central database to avoid duplication of application for and to track 
distribution of wage subsidies, and for other purposes. The SSS and the BIR shall also 
provide free registration for Freelancers to promote their regularization into the formal 
economy.
One Hundred Ten Billion Pesos (Php 110,000,000,000.00) shall be allocated for 
the purposes of this Section.
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The DOLE and the Civil Service Commission (CSC), in coordination with the
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Department of Budget and Management (DBM) shall issue the implementing rules and
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regulations for this Section, within ten (10) days after the effectivity of this Act.
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Sec. 11. Unemployment Insurance or Involuntary Separation Benefit - The
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National Government through the SSS shall provide an unemployment benefit to all
6 
employees who have been involuntarily separated from service due to the COVID-19
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pandemic: Provided, That these employees are included in the BIR's Alphabetical
8 
(Alpha) list of Employees and are paying mandatory contributions to the SSS and Home
9 
Development Mutual Fund (HDMF): Provided, further. That the SSS, in coordination
10 
with the BIR, shall adopt a mechanism for the payment of the said unemployment
11 
benefits directly to affected employees through their respective bank accounts:
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Provided, even further. That that the unemployment benefit shall amount to seventy-
13 
five percent (75%) of their average monthly salary credit for a maximum period of
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three (3) months: Provided, finally. That the unemployment benefit shall be given only
15 
once during the period of the pandemic.
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Sec. 12. Assistance to Employees Who Contract COVID-19. - The SSS and the
17 
National Government shall provide employees compensation to Business Entities and
18 
government agencies, respectively, in the form of paid sick leaves provided to
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employees who contracted COVID-19.
20 
The SSS shall compensate Business Entities for salaries paid to any employee in
21 
excess of paid sick leaves, pursuant to company policy, for the duration of the COVID-
22 
19 related illness, including the required quarantine period after hospital discharge:
23 
Provided, That in no case shall employee compensation exceed One Hundred Twenty
24 
Thousand Pesos (PhP 120,000) per individual.
25 
Any government employee who contracted COVID-19 shall continue to receive
26 
their salaries and allowances even upon exhaustion of their accumulated sick leaves.
27 
The National Government shall provide a subsidy of One Billion Pesos (Php
28 
1,000,000,000) to the SSS for the purposes of this Section.
29 
The SSS and the CSC shall issue the implementing rules and regulations for this
30 
Section, within ten (10) days after the effectivity of this Act.
12


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Sec. 13. Regulatory Relief for Business Entities. - The Anti-Red Tape Authority
2 
(ARTA), together with the DTI, Department of Interior and Local Government (DILG)
3 
and relevant regulatory agencies, shall prepare a list of non-tax and non-duty fees and
4 
charges imposed on enterprises, including fees and charges imposed on Business
5 
Entities for registration, licensing and permitting, and inspection.
6 
The President of the Philippines shall have the power, through the issuance of an
7 
executive order, to suspend, reduce or waive the imposition of the fees and charges
8 
enumerated in the said list for a period of six (6) months. The DTI and the ARTA may
9 
recommend the extension of such executive order for not more than six (6) months.
10 
The BIR, Bureau of Customs (BOC), Department of Transportation (DOTr), SEC,
11 
Philippine Competition Commission (PCC), and other relevant regulatory agencies shall
12 
suspend deadlines for all filings and payments due during the CQ period and extend the
13 
due dates accordingly with no additional interests, fines or penalties.
14 
Regulatory agencies and local government units shall simplify and shorten new
15 
business registration processes as well as renewal thereof after the approval of this Act.
16 
Submission of supporting documents shall be relaxed but applicants shall be required to
17 
submit declarations in lieu of documents with the warning that intentional
18 
misdeclarations shall be imposed with criminal penalties. Six (6) months after the
19 
implementation thereof, and upon recommendation of DTI and ARTA, the said new
20 
business registration process may be permanently implemented by the corresponding
21 
regulatory agency and LGU.
22 
Sec. 14. Tax Relief and Incentives, Extension of Statutory Deadlines for the
23 
Filing of Tax Returns and Payment of Taxes, and Suspension of Tax Audit -
24 
(A) Tax Relief and Incentives. - The provision of existing laws to the contrary
25 
notwithstanding, a tax relief or tax incentives shall be granted to the following:
26 
1. For taxable year 2020, compensation income earners in the MSME sector
27 
shall be exempt from income tax;
28 
2. For taxable years 2020 to 2022, domestic and resident foreign
29 
corporations shall be subject to income tax computed in accordance with
30 
and at the rates established in the following schedule:
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Taxable Income
Tax Rates
Not over P800,000 
Over P800,000 but not 
over P2/000,000 
Over P2,000,000 but not 
over P8,000,000 
Over P8,000,000
15%
P120,000 + 20% of the excess 
over P800,000
P360,000 + 25% of the excess 
over P2,000,000
Pl,860,000 + 30% of the excess 
over P8,000,000
Provided, That corporations classified as MSME by the DTI shall be exempt from 
income tax for taxable year 2020: Provided, further. That Critically-Impacted Businesses 
shall be exempt from income tax for taxable years 2020, 2021 and 2022;
3. For taxable years 2020 and 2021, medical professionals and other 
healthcare workers shall be exempt from income tax: Provided, That self- 
employed individuals and other professionals with an annual gross sales or 
gross receipts of not more than Three Million pesos (P3,000,000) shall be 
exempt from income tax for taxable year 2020;
4. For taxable years 2020 and 2021, services rendered by medical 
professionals for COVID-19 related cases shall be exempt from the value- 
added tax (VAT);
5. For taxable years 2020 and 2021, the sale or importation of drugs and 
medicines, medical supplies, medical devices and equipment which are 
necessary for COVID-19 response shall be exempt from the applicable 
duties, fees and taxes;
6. Donations or contributions actually paid or made, such as food, drugs and 
medicines, medical supplies, medical devices and equipment, quarantine 
facilities, and other essential goods and services for COVID-19 response 
shall be allowed a two hundred percent (200%) deduction in full from 
gross income and shall be exempt from donor's tax;
7. For taxable years 2020 and 2021, proprietary hospitals, non-stock non­
profit hospitals, and testing centers shall be exempt from income tax with
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respect to income received by them from any trade, business or activity, 
the conduct of which is directly related to the exercise or performance of 
their primary purpose and function;
8, Businesses or enterprises engaged in the manufacture of medical supplies, 
medical devices and equipment, and construction of quarantine facilities 
needed for COVID-19 response shail be granted the following incentives:
a. Additional twenty percent (20%) depreciation allowance for 
building and forty percent (40%) for machinery and equipment;
b. Fifty percent (50%) additional deduction on direct labor expense 
incurred in the taxable year; and
c. Fifty percent (50%) additional deduction on domestic input 
expense incurred in the taxable year:
Provided, That the foregoing incentives shall be granted for activities that 
are directly related to the manufacture of medical supplies, medical devices and 
equipment, and construction of quarantine facilities, and can only be availed of 
for taxable years 2020 and 2021;
9. The net operating loss of the business or enterprise for taxable years 2020 
and 2021 shall be carried over as a deduction from gross income for the 
next six (6) consecutive taxable years immediately following the year of 
such loss;
10-The imposition of minimum corporate income tax (MCIT) shall be 
suspended for a period of three (3) years; and
11.All LGUs shall waive the applicabie interest, surcharge and penalties for 
delayed payment of business taxes, real property taxes, other taxes, fees 
and charges for taxable year 2020.
(B) Extension of Statutory Deadiines for the Fiiing of Tax Returns and Payment of 
Taxes, and Suspension of Tax Audit -
1. The filing of tax returns and reievant supporting documents, and the 
payment of corresponding taxes due thereon for taxable years 2019 and
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2020 shall be extended for a period of ninety (90) days from the due 
dates provided under existing laws, rules and regulations; and 
2. The conduct of tax audit or investigation, issuance and service of 
assessment notices, warrants of distraint and/or levy, and warrants of 
garnishment, for the enforcement and collection of deficiency taxes shall 
be suspended for a period of one (1) year: Provided, That the running of 
the Statute of Limitations under existing laws on the making of 
assessment and the beginning of distraint or levy or a proceeding in court 
for collection, in respect of any deficiency, shall likewise be suspended for 
the same period.
Sec. 15. National Government Subsidy on the Mandatory Employers' 
Contributions. - A portion of the Employer's Share in contributions, share and premium 
to SSS, HDMF and Philippine Health Insurance Corporation (PHIC) during the state of 
calamity due to COVID-19 pandemic shall be subsidized by the national government. 
The SSS, HDMF, and PHIC shall include in their respective budgetary submission the 
funding requirement necessary for this purpose.
Sec. 16. Regularization of MSMEs. - To ensure that MSMEs are able to avail of 
programs, and to broaden the tax base and encourage business practices that are 
compliant with the law, the Commissioner of BIR shall have the power to relax revenue 
regulations and waive applicable registration and similar fees of MSMEs for a period of 
not more than eighteen (18) months.
The Secretary of Trade and Industry shall have the power to relax rules and 
regulations governing the registration of MSMEs.
LGUs shall be encouraged by the DILG and the Department of Finance-Bureau of 
Local Government Finance (DOF-BLGF) to waive similar local registration and 
processing fees.
Negosyo Centers shall coordinate with national and local government agencies to 
ensure the widest dissemination of information and benefits under this program.
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CHAPTER 2B: Sectoral Interventions
Sec. 17. Expanded Loan Program to Critically-Impacted Businesses. - The 
following government agencies and instrumentalities shall expand their current loan and 
loan guarantee programs, introduce an Interest-free Loan Program to assist Critically- 
Impacted businesses and other affected sectors and encourage investments in 
essential businesses directly affected or displaced by the COVID-19 pandemic:
a) The Small Business Corporation (SB Corp), through the Development Bank 
of the Philippines (DBP), for MSMEs;
b) The Agricultural Credit Poiicy Council (ACPC), through the Landbank of the 
Philippines (LBP), for agri-fishery enterprises;
c) The DTI, through the LBP and the DBP, for primary tourism enterprises; 
and,
d) The Board of Investments (BOI), through the LBP and the DBP, for 
Critically-Impacted businesses engaged in export or import..
The SB Corp, ACPC, LBP and DBP shall promulgate their respective rules and 
regulations for the expansion of their loan and loan guarantee programs: Provided, 
That the expanded loan program shall consist of any or a combination of the following:
a) increasing the availability of loanable funds;
b) reducing eligibility requirements;
c) increasing the maximum loan amounts per borrower; and
d) reducing the interest rates or offering interest-free loans:
Provided, further, That the loans shall be administered in accordance with the following 
guidelines:
a) The maximum loanable amount shall be fifty percent (50%) of the 
Business Entity's direct labor costs;
b) The loan shall be payable for five (5) to ten (10) years;
c) The proceeds from loans granted under this Section may be used for 
payroll costs; materials and supplies; mortgage payments; crop insurance 
premium payments; rent; utilities, inciuding fuel and storage; business
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improvements and rehabilitation; marketing and promotion; setting-up of 
logistics to support online sales platforms; research and development; 
activities to improve business resiliency in the post-COVID-19 era; the 
creation of new health-supportive ang agriculture-intensive business 
enterprises; re-purposing of existing business capital, or settlement of any 
other business debt obligations that were incurred before the covered 
period; and
d) The following shall be the applicable labor-conditional penalties in the 
event that the Business Entity terminates employees within twelve (12) 
months from incurring the loan:
% of Employees Terminated % of Loans as Penalty
3%
6%
9%
12%
1. Less than 1%
2. 1% to 5%
3. 6% to 10%
4. More than 10%
Provided, even further, That the ACPC and SB Corp shall be authorized to set 
aside up to five percent (5%) of the total amount allotted for their respective expanded 
loan programs to cover the administrative expenses to be incurred in the 
implementation of their respective loan programs:
Provided, furthermore. That the Philippine Guarantee Corporation (PGC) shall 
issue an expanded government guarantee program to guarantee the loans under this 
Act:
Provided, finaiiy. That the President of the Philippines shall have the power to 
declare a moratorium for loans provided hereunder; make available emergency loans to 
Critically-Impacted Businesses for additional .capital outlay under this Section; and relax 
regulations to ensure that these businesses have facilitated access to the loan facility 
provided herein.
The sum of Three Hundred Billion Pesos (Php 300,000,000,000.00) shall be 
allocated for the implementation of the expanded loan program and One Hundred 
Billion Pesos (PhP100,000,000,000) to guarantee the loans provided under this Section.
18


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The DOF and the Bangko Sentral ng Pilipinas (BSP) shall jointly issue the
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implementing rules and regulations and guidelines for this Section, within fifteen (15)
3 
days upon the effectivity of this Act.
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Sec. 18. Other Forms of Assistance to Farmers and Fisherfolk. - The Department
5 
of Agriculture (DA) shall provide direct cash assistance, interest-free loans, and other
6 
forms of assistance to qualified farmers and fisherfolk registered under the Registry
7 
System for Basic Sectors in Agriculture (RSBSA) to ensure food security and continuous
8 
productivity of farmers and fisherfolk.
9 
The DA, in consultation with the DSWD and the Department of Agrarian Reform
10 
(DAR), shall identify the form of assistance to be provided and the eligibility
11 
requirements to be able to receive such assistance: Provided, That engagement in
12 
agricultural and fisheries production shall be included among the eligibility requirements
13 
to receive such assistance: Provided, further. That the provision of assistance under this
14 
Act shall be complementary and supplementary to other similar undertaking of the
15 
government and shali not be a replacement for any existing programs for farmers and
16 
fisherfolk already implemented by any government agency.
17 
Sec. 19. Trade Poiicy Measures. - Trade policies that impede the responses of
18 
businesses in coping with the economic effects of COVID-19 shall be reviewed
19 
accordingly, including, but not limited to, the following:
20 
a. The immediate adoption of zero-tariff rates on essential Imported raw
21 
materials and the temporary suspension of the export percentage
22 
requirements for export enterprises to allow domestic sales of select
23 
manufactured goods while export markets are in the process of recovery.
24 
The DTI, after public consultation, shall identify and publish the raw
25 
materials and manufactured goods which shall be covered by each revised
26 
policy, and review the list every month; and
27 
b. The Department of Science and Technology (DOST) and the Department
28 
of Information and Communications Technology (DICT) shall encourage
29 
the culture of innovation, through research and development, of Business
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Entities, especially in relation to the development of information
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technology-based systems for the health sector. The DTI, in coordination 
with DOST and DICT, shall review incentives and grants for Business 
Entities that develop COVID-19 or any pandemic-related information 
technology products or services.
CHAPTER 2C: Structural Interventions
Sec. 20. Enhanced "Build, Build, Build" Program. - As enhancements to the 
programmed infrastructure spending, there shall be "Build, Build, Build" projects in 
universal health care, education, multi-purpose service facility and food security that are 
labor-intensive and can be completed within one (1) year and with priority given to 
those located in areas severely affected by COVID-19. In addition to the portfolio of the 
Presidential Adviser for Flagship Projects, the following projects shall be integrated in 
the National Expenditure Programs in Fiscal Years (FYs) 2021, 2022, and 2023:
a. 
The construction and development of modern health facilities that will 
complement the Universal Health Care Law and national preparedness for 
surges in demand for pandemics;
b. 
The construction of new, and upgrade of existing laboratories, to conduct 
laboratory-based testing for new and emerging infectious diseases;
c. 
The construction and improvement of public-school facilities with the aim 
of creating "Schools for the Future," or schools geared towards 
competitiveness in the Fourth Industrial Revolution;
d. 
The construction of multi-purpose centers that would serve as 
gymnasium, quarantine facility, evacuation center, training center, 
entertainment venue and for other purposes;
e. 
The construction, improvement, and renovation of infrastructure 
supportive of creative industries; and
f. 
The construction, improvement, and renovation of infrastructure for the 
agri-fishery industry geared towards food security and ensuring public 
health and nutrition.
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For this purpose, Six Hundred Fifty Billion Pesos (Php 650,000,000,000.00) shall 
be allocated over three (3) years starting FY 2021.
An Oversight Committee in each House of Congress is hereby created to be 
composed of five (5) members each, to be respectively designated by the Senate 
President and the Speaker of the House of Representatives, which shall be tasked with 
monitoring the implementation of this Section and the exercise of the authority granted 
hereunder.
Sec. 21. Easing of Monetary Policies. - The BSP and the SEC are hereby 
encouraged to adopt measures, including the relaxation of regulatory and statutory 
restrictions and requirements for a period of not more than ten (10) years from their 
date of effectivity with the end-in-view of encouraging the banking industry and other 
financial institutions to extend loans and other forms of financial accommodation to 
help business recover from the economic effects of COVID-19 crisis and to enable the 
banking industry to manage appropriately its risks and potential losses.
Specifically, the BSP shall adopt a flexible monetary policy that will infuse 
liquidity to the business and financial market. The BSP shall undertake the following:
a) Lower the policy rates;
b) Cut the reserve requirement ratio (RRR) for universal and commercial banks;
c) Purchase treasury and corporate bonds;
d) Offer concessionary loans to companies in priority industries severely affected 
by the economic slowdown; and
e) Extend rediscounting facility that will allow BSP advances to banks using 
eligible papers of bank borrowers as collateral.
The BSP and the SEC are likewise hereby authorized to grant reporting relief to 
its supervised entities by allowing staggered booking of allowance for credit losses for 
all types of credit accommodations extended to individuals and Business Entities 
affected by COVID-19.
A Special Purpose Vehicle (SPV) may be established in accordance with Republic 
Act No. 9182, as amended. The application for its establishment and registration shall
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be filed with the SEC within two (2) years from the date of effectivity of this Act: 
Provided, That the tax exemptions, incentives and fee privileges under Sections 15 of 
R.A. No. 9182, as amended shall be made applicable to all sales or transfers of non­
performing assets (NPAs) from the financial institutions (FI) to an SPV or transfers by 
way of dation in payment {dacion en pago) by the borrower or by a third party to the FI 
for a period of not more than two (2) years from the date of effectivity of this Act: 
Provided, further. That transfers from an SPV to a third party of NPAs acquired by the 
SPV within such two (2)-year period or transfers by way of dation in payment {dacion 
en pago) by a borrower to the SPV shall enjoy the exemption and privileges for a period 
of not more than five (5) years from the date of acquisition by the SPV: Provided, 
furthermore. That the additional tax exemptions and fee privileges under Section 16 of 
R.A. No. 9182, as amended, shall likewise be made applicable for a period of not more 
than five (5) years from the date of acquisition of non-performing loans (NPLs) by the 
SPV: Provided, finaiiy. That Critically-Impacted Businesses which are indispensable to 
the national interest or security as may be determined by the DTI and NEDA shall be 
given priority in the bailout or capital infusion by the SPV.
Chapter 3: Empowerment of Local Government Units
Sec. 22. Utilization of Unexpended Balances of Local Trust Funds. - Unexpended 
cash balances of public funds held in trust by LGUs for purposes that have been 
completed or abandoned may be transferred to the General Fund of the LGU 
concerned, and shall be made available for appropriation to support local government 
programs and projects in response to the COVID-19 pandemic in accordance with the 
guidelines to be issued by the DBM, DOF, and the Commission on Audit (COA).
Sec. 23. Additional Financial Subsidy for Local Government Units. - All provinces, 
cities and municipalities shall be eligible to receive a grant equivalent to their respective 
one (1) month Internal Revenue Allotment (IRA) share to be used exclusively to 
support local government programs and projects in response to the COVID-19
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pandemic and its aftermath: Provided, That the additional financial subsidy for LGUs as
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provided in this Act shail not be used for personnel service expenditures, administrative
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expenses, travel expenses, furniture and fixtures, and other expenses not related to
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COVID-19 response.
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The sum of Forty-four Billion Pesos (Php 44,000,000,000) shail be allocated for
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the additional financial subsidy for local government units provided under this Section.
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CHAPTER 4: Reporting and Monitoring
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Sec. 24. Long-term Plan for Economic Resilience. - NEDA shall submit to
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Congress a long-term plan for building economic resilience, not later than six (6)
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months after the lifting of the CQ. The Economic Resilience Plan (ERP) shall include a
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strategy for measuring and monitoring economic resilience and identification of
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structural reforms needed to increase the ability of the economy to withstand shocks
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such as the COVID-19 pandemic. The ERP shall include the following:
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a. The required investments in the health care sector in the next ten (10)
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years to ensure that it has the ability to. properly and sufficiently respond
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to the health care needs of the population, including emerging infectious
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diseases similar to COVID-19, and
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b. The database requirements to ensure that social protection is sufficiently
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provided by the DOLE, the DSWD, and all relevant social security
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agencies, to ensure that Filipino households are able to cope with external
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shocks such as the outbreak of COVID-19.
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Sec. 25. Economic Stimulus Board. - The Economic Stimulus Board (ESB) is
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hereby estabiished to identify the specific contents of the fiscal stimulus package, to
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identify the specific government program of the implementing agency for the delivery of
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each intervention. The chairman of ESB shall be the NEDA Secretary and shall be
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composed of representatives from DOF, DBM, DOLE, DILG, SSS, GSIS, LBP, DBP, DTI,
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SBC, PGC, BOI, DA, DOT, BSP, the Department of Public Works and Highways (DPWH)
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and any other agency deemed necessary for the proper implementation of this Act.
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Representatives from the private sector may be appointed as members of ESB by the
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President of the Philippines.
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The ESB shall create a Registry of Assisted Businesses, a centralized database
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which all members of the ESB can access with ease, for purposes of monitoring the
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availment of various forms of assistance authorized by this Act, and ensuring that the
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total amount of assistance received by any single business entity, under the various
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Sections of this Act, is rational and proportionate to the scale of response required to
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retain its workforce and maintain its payroll costs: Provided, That such business
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information shall not, in any manner, be directly or indirectly disclosed to others unless
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the business entity consents in writing to such disclosure.
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Sec. 26. Functions of ESB. - The President of the Philippines, or the ESB through
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a resolution, may designate additional members of the ESB as may be necessary.
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The ESB shall perform the following functions and powers:
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a. Evaluate the costs and benefits of programs and projects provided for in
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this Act, and recommend their modification, if necessary, and
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implementation;
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b. Study and recommend programs and projects that the government may
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undertake to complement the implementation of programs and projects
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provided for in this Act;
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c. Oversee and spearhead the preparation of reports mandated under this
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Act;
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d. Recommend to Congress such policies as may be necessary to
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expeditiousiy and efficiently implement the programs and projects allowed
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or provided for herein;
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e. Perform such other functions inherent in its role as the coordinating
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council for all programs and projects provided for in this Act; and
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f. Perform such other functions and powers as may be delegated by the
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President of the Philippines.
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Sec. 27. Monitoring of Impiementation and Congressionai Oversight. - A Joint
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Congressional Oversight Committee on Economic Stimulus Program is hereby created.
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The Oversight Committee shall be composed of the Co-Chairpersons of the Sub­
committee on Economic Stimulus Response Package Cluster of the Defeat COVID-19 
Committee on the part of the House of Representatives and the respective Chairpersons 
of the Committees on Economic Affairs, Ways and Means, and Finance of the Senate. 
An additional member shall be respectively designated by the Senate President and the 
Speaker of the House of Representatives, and another member from the minority shall 
be respectively designated by the Senate Minority Leader and the House Minority 
Leader.
The Joint Congressional Oversight Committee on Economic Stimulus Program 
shall be tasked to monitor the implementation of the economic stimulus response 
package and recommend remedial legislation, if necessary.
The ESB shall continue to estimate and monitor the impact of COVID-19 on the 
economy. In order to ensure the proper use of funds, the ESB shall submit a monthly 
report to Congress of all acts performed pursuant to this Act.
The NEDA and the implementing departments shall submit, either in printed form 
or by way of electronic document, to the Oversight Committee, House Committee on 
Appropriations, the Senate Committee on Finance and the COA, the quarterly 
accountability reports on the utilization of funds. The NEDA shall be responsible for 
ensuring that the said quarterly reports are likewise posted on the official website of the 
NEDA and the implementing agencies.
Releases from the appropriations made herein shall be subject to the submission 
of a special budget pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 
292, series of 1987.
Chapter 5: Financing the Programs
Sec. 28. Budget Deficit Ceiling. The national government is authorized to breach 
the FY 2020 budget deficit targets to a level not exceeding ten percent (10%) of the 
Gross Domestic Product (GDP) and the same level shall extend to FYs 2021 and 2022.' 
Provided, That once the budget deficit exceeds ten percent (10%) of GDP, the DOF
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shall submit a report to Congress every quarter, until it is reduced to a lower level,
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including information as to the justification of the breach and remedial measures
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undertaken in order that the budget deficit will not exceed the target ceiling of ten
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percent (10%) of GDP.
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Sec. 29. Appropriations. - The sum of Five Hundred Fifty-five Billion Pesos
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(P555,000,000,000) is hereby appropriated, to supplement the Fiscal Year 2020 budget
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under Republic Act No. 11465, or the General Appropriations Act of 2020. This sum
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shall be appropriated as an economic stimulus package for those impacted by the
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COVID-19 pandemic, in accordance with the provisions set forth under this Act.
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a) One Hundred Ten Billion Pesos (Php 110,000,000,000) for Wage Subsidy under
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DOLE;
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b) One Billion Pesos (P1,000,000,000) for subsidy to SSS to cover paid sick leaves
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of employees infected by COVID-19 under Budgetary Support to Government
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Corporations;
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c) Three Hundred Billion Pesos (Php 300,000,000,000) for subsidy to LBP, DBP, SB
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Corp, and ACPC intended for interest-free loans to the Critically-Impacted
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businesses and other sectors directly affected or displaced by the COVID-19
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pandemic;
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d) One Hundred Billion Pesos (Phpl00,000,000,000) for the PGC; and
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e) Forty-four Billion Pesos (Php 44,000,000,000) for the additional financial subsidy
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for local government units.
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The amount of Six Hundred Fifty Billion Pesos (Php 650,000,000,000) for
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infrastructure projects shall be included in the General Appropriations Act for three (3)
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consecutive years starting FY 2021.
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Sec. 30. Authority to Reaiiocate and Reaiign Appropriations. - Notwithstanding
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any law or provision thereof to the contrary, the President of the Philippines is hereby
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authorized to reallocate and realign any appropriation, to finance the requirements of
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this Act, as follows:
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1. Programs, projects, and activities which cannot be utilized effectively as a
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result of the COVID-19 outbreak under Republic Act No. 11260 or the
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General Appropriations Act of 2019 and Republic Act No. 11465 or the 
General Appropriations Act of 2020.
The Department of Budget and Management (DBM) shall identify 
programs, projects, and activities which cannot be utilized effectively as a 
result of the COVID-19 outbreak, including items such as discretionary 
travel, and declare allotments for such items as forced savings. The DBM 
shall make a detailed report to the President and Congress on forced 
savings arising from COVID-19, not later than two (2) weeks after the
enactment of this Act.
Within thirty (30) days from the effectivity of this Act, the ESB shall 
identify and recommend to the President of the Philippines infrastructure 
projects in the Executive Department, including GOCCs, for which funds 
had been appropriated but remain unobligated under the 2019 and 2020 
General Appropriations Act (GAA) and special laws that can be transferred 
to the private sector under Republic Act No. 6957, as amended ("BOT 
Law") and utilize any savings generated therefrom to fund and/or 
augment the allocation for any item mandated under this Act.
Allocate, cash, funds, and investments held by any GOCC or any national 
government agency.
Any law that reserves or earmarks any fund or collection by any national 
government agency or GOCC shall be, and is hereby expressly superseded by the 
foregoing authorization, and the President of the Philippines shall have authority and 
discretion to reallocate and realign such fund or collection for whatever purpose the 
President may deem necessary, beneficial, or desirable in order to address the public 
health emergency as declared in Proclamation No. 929.
This authority shall be valid for six (6) months: Provided, however, That the 
President shall submit a quarterly report on the reallocation to Congress.
Sec. 31. Bonds and Financing. - The Secretary of Finance is authorized to direct 
the Treasurer of the Philippines to issue in the name and behalf of the Republic of the 
Philippines bonds to finance programs provided herein.
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The bonds shall be issued In such amounts as will be needed at any one time 
taking into account the following:
a. rate at which said bonds may be absorbed by the buying public;
b. the fund requirements of projects ready for execution, and
c. the balance between producbve and non-productive projects to hold 
inflation at the minimum.
The Secretary of Finance, in consultabon with the Monetary Board, shall 
be the form, the rate of interest, the denominaUon, maturity, negotiability 
converbbrirty, call and redemption features, and all other terms and conditions
governing the issuance, placement, sale, servicing, redemption, and payment of bonds 
issued under the authority of this Act.
Bonds issued pursuant to this section as well as equity and quasi-equity
investments made, directly or indirectly, by banks in the agri-fishery enterprises shall be
eligible for purposes of meefing banks' statutory reserve requirements as well as MSME
and Agri-Agra Reform Credit Act (RA10000) compliance for a period of ten (10) years
The principal and interest of the bonds Issued under the authority of this Section
may be made payable in Philippine currency or any readily convertible foreign currency
Nothing in this Section shall be interpreted to mean that the Secretary of
Finance, in the redemption of securities, is prevented from applying the lottery principle
by Which bonds, drawn by lot, may be redeemed before maturity either at their face 
value or above.
The Secretary of Finance is also authorized to access such other financing
facilities With rates comparable to or more favoiable than prevailing market rates as 
may be necessary. 
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Likewise, GFIs and other GOCCs are hereby authorized to issue bonds under 
such terms and conditions as they may determine in their sound discretion to enable 
them to help finance the programs provided herein.
Sec. 32. Use and Release of Funds. - The amounts appropriated herein shall be 
used exclusively for the purposes specified under the preceding Sections. Releases shall
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be made by the DBM directly to the appropriate implementihg departments and 
agencies.
Sec. 33. Availability of Appropriations. - The appropriations authorized in this Act
shall be available for release and obligation for the purposes herein specified until June
30, 2021, unless othenAfise stated and without prejudice to the DBM issuing an
obligational authority that will lapse at an earlier date than the validity of its 
appropriations.
Chapter 6: Final Provisions
9 
Sec. 34. Implementing Rules and Regulations. - Unless otherwise indicated, the
10 implementing rules and regulations necessary for this Act shall be issued by the
President of the Philippines within fifteen (15) days upon the effectivity of this Act.
Sec. 35. separability Clause. - If, for any reason or reasons, any part or
provision of this Act shall be declared as unconstitutional or invalid, the other parts or
provisions hereof which are not affected thereby shall continue to be in full force and 
effect.
Sec. 36. Repealing Clause. - All provisions of exisflng laws, orders, rules and 
regulations or parts thereof which are in conflict or inconsistent with the provisions of 
this Act are hereby repealed, amended or modified accordingly.
Sec. 37. Effecavlty. - This Act shall take effect immediately upon its publication
in the Official Gazette or in at least two (2) newspapers of general circulation in the 
Philippines.
Approved,
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