TIMELY RELEASE OF FUNDS. Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said timely disbursement of funds for health care workers will assure investors that the sector is among the government's priorities to ensure the economy's recovery. He said managing Covid-19 cases will enable more people to work and further allow for the reopening of the economy. (Photo from RCBC)
MANILA – An assurance of the availability of funds for the health care sector and its timely release are expected to help address investors’ concerns regarding government measures targeted to ensure the economy’s recovery, an economist said.
Healthcare worker unions recently cited the possibility of strikes among their ranks while a nurses group warned of mass resignation due to delayed payment of benefits amid another surge in coronavirus disease 2019 (Covid-19) infections.
“The timely disbursement of funds especially for healthcare workers/medical front-liners would be the solution to these concerns as part of the priorities during the pandemic in view of the risks involved in fulfilling their work that is crucial for the effective handling of Covid-19 cases, as well as other medical conditions by the health care system, which is also an important pillar to better control/manage Covid-19 local cases,” Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort said in a reply to questions from PNA.
On Wednesday, the Department of Budget and Management (DBM) said it has released to the Department of Health (DOH) a total of PHP311.79 million for the payment of special risk allowance (SRA) of health workers from the public and private sectors.
The DBM said the funds were sourced from the miscellaneous personnel benefits fund and unprogrammed appropriations under this year’s national budget.
A joint circular between the DBM and DOH released last June 16, Circular No. 1, and Administrative Order No. 42 said around 20,208 public and private health workers who are directly catering to Covid-19 patients shall receive, on pro-rated basis, an SRA not exceeding PHP5,000 per month from Dec. 20, 2020 until June 30, 2021.
“A stronger health care system would fundamentally counter the risks of lockdowns in the economy, especially when the former asks for a time out, such as in August 2020,” Ricafort said.
The timely disbursement of funds allocated for the health care sector, along with the increase in the number of Filipinos who have received their Covid-19 vaccines with the aim of hitting “population protection and eventually the herd immunity threshold in the latter part of 2021 or early 2022”, are expected “to help justify further re-opening of the economy,” he said.
The increase in the number of vaccinated individuals will also provide for higher production capacity and sales/income for businesses and create more jobs which will also allow the government to collect more revenues and reduce financial assistance as risks of lockdowns are decreased, he added.
“All of which are structural and sustainable solutions to many of the problems and challenges brought about by the Covid-19 pandemic/lockdowns,” Ricafort added. (PNA)
