Press release from the Department of Budget and Management
Abad: Gov’t capacity to respond to Sendong still robust
Budget and Management Secretary Florencio B. Abad today clarified that the P5-billion Calamity Fund was not vetoed under the 2011 National Budget, adding that the budget for disaster response and management remained intact under this year’s General Appropriations Act (GAA).
“No amount of the total Calamity Fund was vetoed. The Aquino administration’s capacity for managing and responding to disasters is still robust. In fact, we now have a balance of P1.297 billion from the Calamity Fund ready for Sendong victims,” Abad said.
He said that contrary to recent reports, the GAA for 2011 merely cautions against using the Calamity Fund for pre-disaster activities, such as the preparation of relocation sites or facilities, and the training of personnel directly involved in disaster management, as indicated in the Conditional Implementation of Special Provision No. 1 in this year’s Calamity Fund.
Abad further noted that funds for disaster preparation had been effectively integrated in various agency budgets, including those for the Department of Public Works and Highways and the Department of National Defense.
“In imposing the conditional implementation, the administration actually ensured the proper use of public funds for disaster management while allotting sufficient funding for pre-disaster programs to all responsible agencies. We took these into account to maximize government’s ability to assist and rehabilitate calamity-stricken areas, as well as to avoid redundancies in public spending,” Abad said.
Under the conditional implementation of the provision, President Benigno S. Aquino III stated that using the Calamity Fund for pre-disaster projects and programs “must be weighed against the imperious need of maintaining sufficient provision under the Calamity Fund for actual calamities,” and that the conditional implementation will “prevent [the Calamity Fund's] full utilization for pre-disaster activities.”
“In the past, funds for disaster preparation unfortunately cut into the budget requirements for actual calamities. Under the 2011 GAA, we decided to prevent this from happening so we can respond optimally to all disasters, and provide direct and immediate relief to victims of calamities,” Abad emphasized.
Special Provision No. 1 in the Calamity Fund, GAA 2011
Use and Release of Fund. The amounts appropriated herein may be made available for relief, rehabilitation, reconstruction, and other works or services in connection with natural calamities, epidemics as declared by the [Department of Health], crises resulting from armed conflicts, insurgency, terrorism, and other catastrophes, which may occur during the budget year or those that occurred in the immediately preceding year including pre-disaster activities such as preparation of relocation sites/facilities, and training of personnel engaged in direct disaster management: PROVIDED, That the beneficiaries of relief, rehabilitation, reconstruction, and other works or services in connection with the occurrence of calamities, epidemics, crises, and catastrophes already covered by donations or grants received by all agencies of the government shall not be entitled to support or assistance from this Fund until the donation or grant has been fully expended or used. The National Disaster Risk Reduction and Management Council (NDRRMC) shall be responsible for consolidating the donations and grants given to agencies of the government in support of calamities.
Releases from this Fund shall be made by the [Department of Budget and Management (DBM)] directly to the appropriate implementing agencies upon approval of the President of the Philippines, and in accordance with the favorable recommendation of the NDRMMC for local disasters or the appropriate agency for international crises: PROVIDED, That the NDRMMC shall consider the donations or grants received by the agencies of the government in support of calamities in making the foregoing recommendation to the President of the Philippines.
The NDRMMC shall submit to the DBM, the House Committee on Appropriations and the Senate Committee on Finance a consolidated accountability report on the utilization of the donations or grants given to agencies of the government or post on its official website, at least on a quarterly basis, said report. The Chairperson of the NDRMMC shall be responsible for ensuring compliance with this requirement.
President’s Veto Message, CONDITIONAL IMPLEMENTATION: Calamity Fund, Special Provision No. 1, “Use and Release of Fund”
“Additionally, I caution the inclusion of pre-disaster activities such as preparation of relocation sites/facilities, and training of personnel engaged in direct disaster management in the use of the Calamity Fund. While said purpose is laudable, the same must be weighed against the imperious need of maintaining sufficient provision under the Calamity Fund for actual calamities and prevent its full utilization for pre-disaster activities. Moreover, I note that the provision for pre-disaster activities are embedded and subsumed in the programs and projects of various implementing agencies under this Act.”