Response to COVID 19: Stimulus Package for Cebu

Province for the year 2020

GROUP 5

Abellana, Thessa Monica

Deniega, Chriskille Kate
Doctolero, Jessie Kent
Espina, Anskie McLouisse
Perez, Seth Dominic

Applied Economics

Mr. Allen Tam

12 - AMARE

8 September 2020
 Response to COVID 19: Stimulus Package for Cebu Province for the year 2020

I. Introduction

The rapid emergence of the corona virus disease in Cebu province has prompted the local
government to take action. At the end of March 2020, certain precautionary measures have been
established to diminish the spread of the virus however, this only promoted a period of economic
stagnation for the city. The adverse economic impact Covid-19 has brought businesses down and
industries deriving to a slower production. The significant deceleration in economic activities not
only affected those with businesses but the minority included – these are the unemployed, front
liners, and staggering households. Being able to support all three while retaining the economy
serves a huge challenge for the local government sector.

The province of Cebu, taking into account that all sectors: the unemployed, front liners,
and low income households, shall be catered under the given regional budget of P85 billion. The
905,140 unemployed workers, 10,330 private health workers, and 35,740 low income
households will be provided with their essentials and necessities during the Covid-19
pandemic. With the package designated for each sector, the following are the qualifications to
receive such:

1.) Unemployed workers who qualify under the lowest 20% income group will be
provided with P15,000 as “seed capital” given as a chance to create a small
business for income.
2.) Monthly incentives amounting to P10,000 for three months to healthcare workers
in private hospitals in Cebu – that includes nurses, doctors, radiologists and
medical technologists, and respiratory therapists.
3.) Monthly allowance amounting to P5000 – P6000 to those eligible in low-income
households can be acquired through cash or non-cash, including their basic needs
in the household.

P85.54 Billion Budget Breakdown

P10 Billion

P400 Million
P74.14 Billion
P1 Billion

Unemployed Workers Health Workers Low-income Households Reserved for Other Sectors
II. Eligibility Requirements and Qualifications

On March 11, 2020, a 65 – year old man was tested positive for the disease and was
admitted to Chong Hua Hospital in Mandaue City. However, for the past months the city’s cases
have gone rabid and has officially acclaimed the tile as the “Country’s COVID-19 Hotspot”. From
this point on, containment in all areas of Cebu were acted upon by the local government.
Protocols have tightened in virus-prone areas to prevent the spread of the virus.

The debate of whether or not the government should loosen the lockdown policies just
for the economy stay afloat does not stay unnoticed. When it comes to families, they are left
with little to nothing with their food, water, and other necessities. Health care workers are also
left to fatigue themselves night after night. Cebu is facing a dreadful situation that needs serious
solutions. If not acted upon, then this can lead to a catastrophe that could put the city in jeopardy.

The budget allotted for those severely affected has been divided for the different sectors
mentioned. Through these, the problems of having difficulties financially or getting ahold of
necessities can be now be ameliorated. Even so, only those eligible for financial aid can acquire
these. Below are the detailed requirements for application:

A. Seed Capital Program Requirements and Qualifications

This program specifically caters those who either lost their jobs during the pandemic or
under companies that has “no work, no pay” policy and are looking for an alternative way to earn
during the pandemic. Those who vie for application must prepare:
o Business Size: The desired business must not qualify under the BIR’S Large
Taxpayer Service (LTS) list.
o Business Requirements:
- Any valid and government accepted ID and Tax Identification
Number (TIN)
- Certificate of Unemployment
- Must fall under business categories allowed to operate during
Enhanced Community Quarantine (ECQ)
o Employee Criteria:
- Must be employed last March 1, 2020 but is unable to work
because of the pandemic.
- In accordance to Labor Advisory No. 1, Series of 2020, anyone who
was not paid by their company employer for more than two weeks
will be qualified for this program. Those who are granted leave
(maternity leave, sabbatical leave, or any leaves of the same type)
will not be eligible for the program either paid or not paid.
 B. 3 Month Wage Boost Program Requirements and Qualifications
This program specifically caters the healthcare workers who are not compensated enough
during the pandemic. The wage bonus will be given to private healthcare employees in hospitals;
employers will be funded and will make the payment via the grant.
o Original and Photocopy of Certificate of Employment (COE)
o PCSO Individual Application Form
o 1 Month Pay Slip
o Photocopy of Current Company I.D.
o Photocopy of any government I.D. (SSS, Passport, Driver’s License, PRC License,
BIR/TIN, Police Clearance (with picture), Voter’s, PWD, PhilHealth, Postal, and
Barangay ID)

C. Tulong Pangmamayanan Program Requirements and Qualifications

This program specifically caters the families in Cebu who belong to the poor or informal
sector who are experiencing a financial pause during the Enhanced Community Quarantine (ECQ)
or may have at least one member belonging to any disadvantage sectors. Below are the list for
qualification for specific target beneficiaries:

1.) You or a family member is a senior citizen or aged 60 and above - Senior Citizen’s
ID
2.) You or a family member is a person with disability (PWD) - PWD ID, or Certificate
of Separation from or Suspension of Work
3.) You or a family member is pregnant or breastfeeding - valid ID, Certification from
RHU, or Birth Certificate of Child (if available)
4.) You or a family member is a solo parent - Solo parent’s ID, or Certificate of
Employment or Separation from or Suspension of Work
5.) You or a family member is an Overseas Filipino Worker (OFW) in distress. These
include OFWs who were repatriated or banned to travel outside the country, since
January 2020, due to the COVID-19 global health crisis.

- Valid Passport Bio Page, and copy of any other following:

- Passport arrival stamp;
- Proof of departure ticket;
- Overseas Employment Certificate;
- Employment Contract; or
- Any other documents to prove that they were repatriated were
banned from traveling outside the Philippines within the
prescribed period;

6.) Your family is part of indigent and indigenous people. These are families or tribes
certified as poor by field offices of the DSWD or National Household Targeting
System for Poverty Reduction (NHTS-PR). - As applicable: Certification from
Barangay (proving that they are homeless families or belonging to other
vulnerable groups) or from the CSWDO/MSWDO/PSWDO where they are
 currently located. Certification from the NCIP or the tribal chieftain/council of
elders that the beneficiaries are Indigenous Peoples (IPs) and are on subsistence
economy.
7.) Workers in the Informal Sector/Self-Employed – including occasional workers,
subcontracted workers, homeworkers, householders, all public utility drivers,
micro-entrepreneurs, family enterprise owners, sub-minimum wage earners,
Farmers & Fisherfolk, ’No work, no pay’ employees, and stranded workers:

- Driver’s License; TODA ID; or Certification of membership from

the Organization/Association; or Certification from the
Barangay/Municipality, for TODA only;
- Employment ID; or Kasambahay ID; or Certificate of
Employment/Separation from or Suspension of Work from the
employer;
- Proof of business; Any other document showing
employment/occupation/enterprise; or Barangay Clearance;

III. Cost Breakdown and Procedures

A. Seed Capital Program

Procedure:
The P15,000 seed money given to those qualified for this grant will be in a methodological
process to ensure legitimate usage of funds.

1.) For those qualified to apply, they will first be allotted P5,000 to secure business
preparations like registrations such as: DTI Permit, BIR Permit, Mayor’s permit or
barangay permit. A collateral will be asked for each applicant to avoid misuse of
the seed money given for registrations.
2.) After the registrations are secured, the remaining P10,000 will then be given to
the applicant to pursue his/her business.

Cost Breakdown:

P5,000, Registration Seed Money

Barangay Permit P4,000
DTI Registration P970
Documentary Stamp P30
No payment
BIR Registration
needed
Total P5,000

Once the registrations are given and proved legitimate, the remaining P10,000 will be given on
the hands of the applicant on however they would like to use it as their capital for their business.
 B. 3 Month Wage Boost Program

For three consecutive months, each month private healthcare workers will receive a wage
boost of P10,000. Labella said in an interview that the move is meant “to boost the morale” of
private doctors and nurses who are paid less compared to their counterparts working in
government. According to the Department of Labor and Employment (DOLE), registered nurses
receives an average salary for as low as P8,000 to P13,500 per month during the pandemic. The
3 Month Wage Boost Program will help aid financial issues for the private healthcare workers.

Cost Breakdown per Month:

Hazardous Pay (Compensation given to employees who work under extreme

P5,000
and risky conditions)
Transportation (For fuel, commute, or any sort needed for any mode of
P1,000
transportation)
Cash Incentives (Given to those who work extra hours and treated a
P4,000
significant amount of patients)
Total P10,000

C. Tulong Pangmamayanan Program

For two consecutive months, beneficiaries for this program will be given the subsidy
amount of at least P6,000 per month to cater their basic needs such as: food, water, medicine,
and toiletries. Beneficiaries shall be granted only if they pass the qualifications and submit
needed requirements

Rough Estimate of Monthly Consumables for a Family of Three

Food and Water
10 kgs. of Sinandomeng Rice P460
Packed and Canned Goods – canned sardines, pancit
P960
canton, noodles, beef loaf (16 pcs each per month)
5 Gallons of Drinking Water P125
Total P1,545
Fresh Meats and Produce
4 kgs. of chicken meat P300
2 kg. of pork meat P440
2 kg. of fish meat P180
Produce (both vegetables and fruit) P300
Total P1,220
 Transportation
Fuel and Fare P1,000
Total P1,000
Medical Supplies
Face Masks – 50 pcs. P100
Vitamin C Tablets – 100 pcs. P165
500 mL alcohol and disinfectant – 2 pcs. P200
Total P465
Toiletries
80 mL Shampoo – 2 Pcs. P120
Bar Soap – 2 pcs. P100
22g Colgate toothpaste sachet – 6 pcs. P45
12 rolls of tissue paper P280
Total P545
Miscellaneous and Emergency Funds P1,225
Total P1,225
Total for all expenses: P6,000

As seen on the table, consumables are categorized by: Food and Water, Fresh Meats,
Transportation, Medical Supplies, Toiletries, and Miscellaneous and Emergency Funds.

1.) Food and Water

The qualified family of three will be given portions of food necessities that they have to
ration out for the period of a month. The 10 kilograms of rice must be portioned and managed
to be enough for the family. Together with canned and packaged goods, fresh meat, produce,
and drinking water shall be used efficiently to meet the needs of the family.
2.) Transportation
Transportation fees will mainly consists for 1) those who are eligible and choose to use
their vehicle of any sort may be a car or motorcycle during certain quarantine measures in the
city and 2) those who choose to commute. Vehicle users can use it for fuel and any emergency
vehicle fixtures. Commuters may use the money for fare and other needs for transportation.
3.) Medical Supplies
Each family are provided with the basic pandemic essentials such as: face masks, vitamins,
and alcohol. Since this is in high demand, beneficiaries are highly prioritized in this package. Low-
income households find it hard to even suffice themselves with face masks so, 50 pcs. of these
will be given to them and usage has to be managed. Vitamins and disinfectants will also be given
to promote prevention in each household.
4.) Toiletries
Basic toiletries as seen in the table will be provided to the qualified beneficiaries since
hygiene must be maintained. For each month, families must portion out each product given. Take
into account that the toiletries contains common brands and possibly the cheapest to
accommodate the mass majority of households.
 5.) Miscellaneous and Emergency Funds
For any emergency or needed payments the family has, they can use the leftover money
they have from other categories. These can be used for utilities depending in any way the family
will use it for.

All estimates and calculations for the consumables specifically for Region 7’s P6,000
subsidy amount are based on the Joint Memorandum Circular No. 1. Series 2020 data. The table
below shows the subsidy amount of each household in the region of residence.

IV. Inclusion for Government and Other Sectors for Proposed Programs

A. Seed Capital Program

1.) Beneficiaries
As said from the paragraphs above-mentioned, the main beneficiaries are those who:
1.1 Underwent unemployment due to company shut down during the Covid-19
restrictions.
1.2 Unemployed workers who struggle with companies with “no work, no pay” policy.

2.) Branch of Government In-charge

2.1 Department of Trade and Industry (DTI) – The program falls under Small Business
Corporations which is an agency attached to the Department of Trade and Industry (DTI).
Given that the relatively small size an applicant’s business can be, they are at risk during
 the Covid-19 pandemic. To elaborate, qualified applicants will only be able to own micro,
small and medium enterprises; an (MSME). This is why the DTI will spearhead the entirety
of this program since they promote and develop the MSME sector. Among the six major
functional groups composed of bureaus that pillars DTI, the Management Services Group
(MSG) will mostly be involved in this. Peñaloga (2019) affirmed that the MSG’s deliver
effective, adequate, and timely services to clients in the shortest possible time at the least
cost. It also provides industry policies and coordinates and monitors the implementation
of the operating plans and programs of the agenda. DTI will only handle fund allocations
and distributions to the barangay sector.
2.2 The Barangay Sector – The province of Cebu is subdivided by 80 barangays – an
average of 2,500 people in each barangay. This sector is essential for this program since
the Department of Trade and Industry (DTI) cannot manage every single applicant at once.
It is necessary to scope it in a smaller scale and allow the barangays to handle the
processes. A barangay ensures the delivery of basic services thus, the barangay will be the
one to distribute the funds supplied by the DTI to the qualified applicants. Handling
registrations and applications will also be handled by the barangay sector.

3.) Qualified Applicant/s Prerequisites

3.1 The qualified applicant shall only be limited to a total of fifteen thousand pesos
(P15,000) for the start-up for his/her business. An applicant shall and will not be allowed
to apply more than once to add money into his/her proposed business. The business the
applicant wishes to own shall be legal and be useful for the welfare of the people in
his/her community – anything other than that will not be approved.

4.) Regulations
4.1 THIS SECTION ARE FOR THOSE WHO ILLICITLY MISUSE THE FUNDS GIVEN FOR SEED
CAPITAL PROGRAM ONLY. Any person who shall defraud another by means of false
pretenses or fraudulent acts of Article 315 of the Revised Penal Code, as amended by
Republic Act No. 4885, shall be punished by:

a. The penalty of reclusion temporal if the amount of the fraud is over 12,000 pesos but
not exceed 22,000 pesos, and if such amount exceeds the latter sum, the penalty provided
in this paragraph shall be imposed in its maximum period, adding one year for each
additional 10,000 pesos but the total penalty which may be imposed shall in no case
exceed thirty years. In such cases, and in connection with the accessory penalties which
may be imposed under the Revised Penal Code, the penalty shall be termed reclusion
Perpetua;

b. The penalty of prison mayor in its maximum period, if the amount of the fraud is over
6,000 pesos but does not exceed 12,000 pesos;

c. The penalty of prison mayor in its medium period, if such amount is over 200 pesos but
does not exceed 6,000 pesos; and,
 d. By prison mayor in its maximum period, if such amount does not exceed 200 pesos.

5.) The Program in the Future

5.1 The Seed Capital Program is a program not only is fit for the Corona virus epidemic
but this is vital for the future of economy. This can open a gateway for many aspiring
micropreneurs in Cebu province or even the world.

B.) 3 Month Wage Boost Program

1.) Beneficiaries
As said from the paragraphs above-mentioned, the main beneficiaries are those who are:
1.1 Doctors, nurses, radiologists and medical technologists, and respiratory therapists, or
any worker belonging to private health care.

2.) Branch of Government and Agencies In-charge

2.1 Department of Labor and Employment (DOLE) Region VII – The Department of Labor
and Employment in Central Visayas (DOLE-7) is the government agency mandated to
formulate policies, implement programs, and serve as the policy-coordinating arm of the
Executive Branch in the field of labor and employment. Since DOLE-7, along with other
DOLE branches in different regions promotes gainful employment opportunities, this
government agency is nothing but fit for the 3 Month Wage Boost Program. DOLE-7 will
be tasked to handle the funds allocated for the private health care workers situated in
Cebu province. Moreover they are tasked for applications and selecting which hospitals
will be entrusted with the financial distributions.
2.2 Private Hospitals in Cebu Province – Private hospitals are required to keep a directory
for the healthcare workers who applied and are eligible for this program. Administrators
of private hospitals must submit the total number of eligible employees every month for
three months so that financing will be settled and distributed at the exact amount. Once
the funds are distributed, the P10,000 cash will be added to the worker’s paycheck.

3.) Qualified Applicant/s Prerequisites

3.1 The qualified applicant shall only be given P10,000 only every month for three months.
This can only be redeemed during payroll at the end of every month, added to their total
paycheck. An applicant cannot be given more than the provided financial aid and cannot
be given a single cash-out for the 3 month allowance. The worker will only receive money
through his/her employer i.e the private hospitals he/she is working in.

4.) Regulations
4.1 THIS SECTION ARE FOR THOSE WHO ILLICITLY USE SCAMS AND FAKE IDENTITY TO
RECEIVE SUCH AID ONLY. Intent is an element of forgery. Variations may be possible
depending on your jurisdiction, but forgery involves the creation or altering of a
document with the intent to defraud someone. This may involve crimes as complex as or
signing a check using someone else’s signature in order to commit identity theft. Other
documents that can be forged include deeds, promissory notes, wills and contracts (Shaw,
 2011). Any person who is caught being dishonest and committed falsification of official
documents is trying to disrupt the system. Anyone who scams his/her way through this
will have to go through necessary fines or even imprisonment.

a. Shall be punishable under Article 315 of the Revised Penal Code, as amended by
Republic Act No. 4885 - Any person who shall defraud another by means of false pretenses
or fraudulent acts

b. Shall be punishable under Article 171 in relation to Article 172 of the Revised Penal
Code - the crime of falsification of document may be committed, among other things, by
counterfeiting or imitating any handwriting, signature or rubric or causing it to appear
that persons have participated in an act or proceeding when they did not in fact so
participate.

5.) The Program in the Future

5.1 The 3 Month Wage Boost Program can be implemented during community crisis
regarding healthcare workers. In this case, this program is timely since it provides to those
who risk their lives during the Corona virus pandemic.

C.) Tulong Pangmamayanan Program

1.) Beneficiaries
As said from the paragraphs above-mentioned, the main beneficiaries are those who belong
to:
1.1 Low-income class (households with a monthly income between P10,481 and P20,962)
1.2 Poor (households with a monthly income less than P10,481)

2.) Branch of Government In-charge

2.1 The Department of Social Welfare and Development (DSWD) – DSWD promotes
social protection and poverty-reduction solutions for the poor, vulnerable, and
disadvantaged. This government agency is optimal for this proposed program since the
principal recipients are the poor and those in the low-income sector. DSWD will mainly
facilitate the fund allocation and financing for the entirety of the program. Moreover,
DSWD will supervise the Local Government Units (LGUs) in the distribution of the aid
provided.
2.2 The Barangay Sector – The barangay sector will list all names of eligible beneficiaries
to be sent out to DSWD. This is to help finance the program and to see how much is
needed for each barangay to distribute to each household. This sector will serve as the
applying and claiming center. Wherein the barangay halls is where the applicant will
submit his/her requirements and thereafter, claim his/her aid every month for two
months if application is approved. During claim day, ONLY one representative per
approved family will remit the aid to the barangay hall to prevent over-crowding and to
promote social distancing. A representative cannot claim aid without a mask and face
shield.
3.) Qualified Applicant/s Prerequisites
3.1 Each family can only appoint one (1) representative and cannot have more than that.
Each family will receive P6,000 aid for necessities listed in the previous table above. This
will be given through a monthly basis for a period of two months. An applicant cannot
request for a single cash-out basis and additional aid. Only the exact amount will be
allocated for each applicant to be able to extend to other families who need it as well.

4.) Regulations
4.1 THIS SECTION ARE FOR THOSE WHO DOES ANY FORM OF IDENTIFICATION THAT IS
FORGED, ALTERED, OR OTHERWISE PURPORTS TO ESTABLISH THE FALSE IDENTITY OF A
PERSON ONLY. There might be cases wherein those who apply might use fake IDs, or any
form of false documents just to be qualified for the program. This must be avoided at all
cost. Having possession of any falsified, altered, forged, duplicated, reproduced, or
counterfeited government ID’s or any of the ID’s needed for application will yield to
penalty and/or even imprisonment.

a. Fake Driver’s License – A legitimate driver’s license can only be acquired in the Land
Transportation Office (LTO) office. Any licenses claimed in any other platforms will be
considered not legitimate. If caught, according to Article 1 Section 56 of the Revised Penal
Code whoever is in possession and uses it will face charges up to 6 months of
imprisonment, a P3,000 fine, and one-year driving suspension.

b. Falsified Documents - The penalty for the crime of falsification is imprisonment of

prison correctional in its medium and maximum periods and a fine of not more than
P5,000. The imprisonment that is imposed for a period ranges from two years, four
months and one day to six years.

5.) The Program in the Future

5.1 This program can actually be implemented in the future as poverty has been
tremendously evident in the Philippines. This has yet to be solved but this program is best
for succoring those in need of help. In the foreseeable future, this program can go on even
after the Covid-19 epidemic so lang funds are allocated for the low-income sectors.
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