DA urged to cut ACEF costs

Sen. Ramon Magsaysay Jr. wants the Department of Agriculture (DA) to consider his proposal to reduce from 10 percent to two to five percent of the available Agricultural Competitiveness Enhancement Fund (ACEF) the amount which will be used for expenses covering administrative, operational, monitoring and evaluation concerns, including the conduct of studies and other developmental undertakings, and provision of technical assistance related to the proper and efficient utilization of, and access to the fund.

Magsaysay aired his proposal after reviewing the amended revised implementing guidelines on the utilization of the ACEF, which was also discussed together with the Agriculture and Fisheries Modernization Act during the en banc meeting of the Congressional oversight committee on agricultural and fisheries modernization (COCAFM) held recently at the Senate. ACEF is one of the sources of funds for AFMA implementation.

"The total actual ACEF collections deposited in Fund 183 reached P5,819 billion as of March 28, 2006. Therefore, considering the 10 percent for this collection alone, the amount to be spent for administrative and other operational expenses aforementioned would be P581 million, which is huge, considering that there is a separate budget allocated for these operational expenses under the regular budget of the DA," Magsaysay said.

"To allot half a billion pesos for a regular-funded DA responsibility would not only make the administrative and operational cost for the management of the fund too expensive, but also very insensitive to the true needs of the agriculture sector. It is better and more beneficial to the agriculture sector if this P581 million be spent for infrastructure and other vital needs of the small farmers, fishermen and agricultural enterprises to make them globally competitive," he explained.