1. Please discuss what is Social Amelioration Program (SAP). Where is it obtained? How is it
related to national budget or budgeting or the budget table. How should the budget table be
balanced? Is the program, just like the programs of other countries (e.g., US, doling out/giving
cash/checks to the americans during this COVID-19 pandemic period) somehow related to what
you learned on 2 central approaches in macroecomics, i.e , Keynesian economics to
understanding business cycle, and the neoclassical growth model to understand long-term growth
trends? Please discuss comprehensively and organize well your answer.
2. You learned about BOP (balance of payments) and BOT (balance of trade). What do you think
would be the effects of COVID-19 pandemic to PH BOP and BOT? Is the so-called US - China
trade war, now exacerbated by the COVID-19 pandemic and with new US trade measures,
including the removal of Hong Kong special status in US, will affect PH trade? How? Please
discuss comprehensively and organize well your answer.
Answers:
1. Having no definite end in sight for the COVID-19 pandemic, Filipinos under the informal
sector are in need of financial aid from the government. The Social Amelioration
Program (SAP) is the government’s answer to this problem.
SAP is a cash emergency subsidy ranging from P5,000 to P8,000 directed to 18 million
Filipino families to cover for their basic needs for two months. The government
emphasized that those families whose livelihood are the most affected by the ECQ,
particularly families under the informal sector, are SAP’s top priority.
This is mandated by the new law “Bayanihan to Heal as One Act,” signed by President
Duterte last March 25, 2020. The details of the 275 billion emergency fund for COVID-
19 has been summarized in this document. Under this law, the president is required to
report to Congress the plans about the allocation of the emergency funds and how it will
be spent for its pandemic response. The report also showed how various departments
have realigned their budgets for COVID-19 response.
A government budget is said to be balanced if the revenues equal (or exceed)
expenditures. In order to balance the budget, government must cut spending to equal tax
receipts. This will reduce demand and will destroy GDP further. Also, this will
potentially throw the economy into a downward spiral. This is where deficit spending
comes in. Proponents argue that deficit spending will stimulate a lagging economy by
infusing it with much-needed capital.
Deficit spending, public expenditures, taxation, and consumption– these made up
Keynesian economics. After the Great Depression, Keynes rejected the notion that the
economy would return to equilibrium. He argued that once an economic decline starts,
the fear that it brought among businesses and investors will tend to become predictable
and can lead to a sustained economic slump and unemployment. In response to this, he
advocated that during periods of economic decline, governments should start deficit
related to national budget or budgeting or the budget table. How should the budget table be
balanced? Is the program, just like the programs of other countries (e.g., US, doling out/giving
cash/checks to the americans during this COVID-19 pandemic period) somehow related to what
you learned on 2 central approaches in macroecomics, i.e , Keynesian economics to
understanding business cycle, and the neoclassical growth model to understand long-term growth
trends? Please discuss comprehensively and organize well your answer.
2. You learned about BOP (balance of payments) and BOT (balance of trade). What do you think
would be the effects of COVID-19 pandemic to PH BOP and BOT? Is the so-called US - China
trade war, now exacerbated by the COVID-19 pandemic and with new US trade measures,
including the removal of Hong Kong special status in US, will affect PH trade? How? Please
discuss comprehensively and organize well your answer.
Answers:
1. Having no definite end in sight for the COVID-19 pandemic, Filipinos under the informal
sector are in need of financial aid from the government. The Social Amelioration
Program (SAP) is the government’s answer to this problem.
SAP is a cash emergency subsidy ranging from P5,000 to P8,000 directed to 18 million
Filipino families to cover for their basic needs for two months. The government
emphasized that those families whose livelihood are the most affected by the ECQ,
particularly families under the informal sector, are SAP’s top priority.
This is mandated by the new law “Bayanihan to Heal as One Act,” signed by President
Duterte last March 25, 2020. The details of the 275 billion emergency fund for COVID-
19 has been summarized in this document. Under this law, the president is required to
report to Congress the plans about the allocation of the emergency funds and how it will
be spent for its pandemic response. The report also showed how various departments
have realigned their budgets for COVID-19 response.
A government budget is said to be balanced if the revenues equal (or exceed)
expenditures. In order to balance the budget, government must cut spending to equal tax
receipts. This will reduce demand and will destroy GDP further. Also, this will
potentially throw the economy into a downward spiral. This is where deficit spending
comes in. Proponents argue that deficit spending will stimulate a lagging economy by
infusing it with much-needed capital.
Deficit spending, public expenditures, taxation, and consumption– these made up
Keynesian economics. After the Great Depression, Keynes rejected the notion that the
economy would return to equilibrium. He argued that once an economic decline starts,
the fear that it brought among businesses and investors will tend to become predictable
and can lead to a sustained economic slump and unemployment. In response to this, he
advocated that during periods of economic decline, governments should start deficit
