Gov't ready to provide P10.9 B to areas hit by floods

Manila, Philippines -  The Aquino administration is ready to provide at least P10.9 billion for disaster and relief efforts in areas affected by heavy flooding last week, Budget and Management Secretary Florencio Abad yesterday said.

This is on top of the remaining P5.950-billion calamity fund of the government for 2012, he said during a Senate hearing for the proposed P2.006-trillion budget for 2013.

The P10.9 billion comprises of P9.4 billion in savings from unfilled plantilla positions in the first half of the year and P1.5 billion from last year.

Finance Secretary Cesar Purisima said during the same hearing that the government still has enough fiscal space for the purpose of rehabilitation and would not need a supplementary budget for now.

“I am confident with our available space for the immediate and short term, we will be able to accommodate requirements for relief, rehabilitation and evacuation needs,” Purisima said.

From January to June, the government posted a budget deficit of P34.48 billion, below the programmed budget gap ceiling for the period of P109 billion or lower by roughly P75 billion. This indicates that there is still a lot of room for the government to boost spending.

President Aquino yesterday met with his economic team to determine how much would be needed for relief, rehabilitation and evacuation efforts.

“The President has called for a meeting to consolidate all reports,” Purisima said.

Last week, Abad said the government’s calamity fund for 2012 still has a balance of P5.950 billion which may be used for post-disaster rehabilitation efforts.

According to the Budget department, the 2012 expenditure program provides P7.5 billion for the calamity fund while a balance of P291.775 million has been carried over from the previous year.

On top of the calamity fund, the different departments can also tap its so-called Quick Response Funds or QRFs.

The 2012 budget allocates QRFs separately under the budgets of the departments.

This is unlike in the previous fiscal years where the QRFs have been tucked into the calamity fund.

In all, the government has appropriated P10.489 billion for the calamity fund and QRFs, more than double the P5-billion calamity fund under the 2011 budget.

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