Aquino’s ‘purse’ eyed as source of calamity funds

Two senators have proposed taking varying amounts from the discretionary funds of President Aquino (pictured) in the P2.268-trillion 2014 national budget to cobble together a multibillion-peso rehabilitation fund for the areas destroyed by Supertyphoon “Yolanda” and other recent calamities. INQUIRER FILE PHOTO

MANILA, Philippines—Two senators have proposed taking varying amounts from President Aquino’s discretionary funds in the P2.268-trillion 2014 national budget to cobble together a multibillion-peso rehabilitation fund for the areas destroyed by Supertyphoon “Yolanda” and other recent calamities.

Senate President Franklin Drilon proposed the creation of a P15-billion fund he called the Calamity Assistance and Rehabilitation Effort, or CARE, to be taken from the proposed P81.06-billion miscellaneous personal benefits fund for the executive branch.

On the other hand, Senate President Pro Tempore Ralph Recto proposed a much bigger P55-billion Rehabilitation and Reconstruction Fund to be taken from the administration’s risk management fund and its debt management fund.

Recto also wants billions of pesos from the Malampaya Fund and the government’s share in the coconut levy fund to go to the rebuilding effort.

The amendments to the budget were proposed days before the Senate tackles the national budget in plenary on Monday.

“I proposed the creation of a CARE fund to be used exclusively for the construction of housing units and the repair and rehabilitation of irrigation systems, school buildings, power infrastructure, hospitals, roads, bridges and government buildings,” Drilon said.

He said the fund would go toward the rehabilitation of areas devastated by typhoons Santi, Labuyo and Yolanda, the magnitude-7.2 earthquake in Bohol and the siege of Zamboanga City by an MNLF faction.

Drilon proposed that the CARE fund be taken from the P81.06 billion miscellaneous personnel benefits fund in the 2014 General Appropriations Act.

He suggested the P15-billion CARE fund be divided among the Department of Public Works and Highway (P6 billion), Department of Education (P2.75 billion), State Universities and Colleges (P1.25 billion) and National Housing Authority (P1.5 billion).

He proposed that P1 billion be allocated to the Department of Health for the repair of hospitals, as well as P750 million each to the Department of Energy to restore power utilities and the National Irrigation Administration to repair irrigation systems.

He likewise suggested that another P1 billion be given to local government units for the repair of rural health units and hospitals and to fund other rehabilitation programs.

“The release of the funds for this purpose shall be made directly to the appropriate implementing agencies and local government units in accordance with the recommendations of the National Disaster Risk Reduction Management Council and the approval of the President of the Philippines,” Drilon said.

Recto, on the other hand, suggested taking P26.26 billion from the Malampaya Fund to restore electricity and rebuild the power infrastructure in areas affected by Yolanda and taking a portion of the P70-billion coconut levy fund to help coconut farmers affected by the supertyphoon.

Recto also wants P30 billion from the executive branch’s Risk Management Program and P25 billion from its Debt Management Program realigned to the P55-billion Rehabilitation and Reconstruction Program for mass housing, hospitals and other health facilities, schools, an increased calamity fund and subsidies for local government units.

He also proposed that the Senate’s entire P4.8-billion share in the Priority Development Assistance Fund or pork barrel be realigned to the calamity fund that is currently proposed at P7.5 billion for 2014.

Recto also proposed an advanced release of the Internal Revenue Allotment (IRA) and the local government shares in the national budget to LGUs in calamity-stricken areas “to front-load the financial requirements of relief, rehabilitation and reconstruction of damaged infrastructure.”

“The unfavorable business environment in the affected areas will arrest revenue collection, making the LGUs dependent on their IRA share,” Recto said in his proposal to the Senate committee on finance chaired by Sen. Francis Escudero.

Escudero will present the committee report on the P2.26-trillion 2014 national budget on Monday. The report is expected to contain the amendments for the rehabilitation fund.