Finance Secretary Cesar Purisima (in photo) is pushing for the creation of a calamity resiliency fund, which the government may tap to fund projects aimed at helping the country withstand extreme weather disturbances and other natural disasters. INQUIRER FILE PHOTO
MANILA, Philippines—Finance Secretary Cesar Purisima is pushing for the creation of a calamity resiliency fund, which the government may tap to fund projects aimed at helping the country withstand extreme weather disturbances and other natural disasters.
In a press briefing Friday, Purisima said the proposed fund would be created using tax revenues.
‘Strictly for projects’
“The calamity resiliency fund would be a true special fund in that it will not be used for other purposes but strictly for projects aimed at improving resiliency against calamities,” he told reporters.
The amount of money to be earmarked for the fund is something government finance and budget officials ought to discuss, he said.
But he added that the creation of the fund would require the government to substantially shore up tax collection.
Purisima said potential projects that can be financed by the proposed fund include the construction of public infrastructure that adopts calamity-resiliency designs as well as the relocation of families living in disaster-prone areas.
He said the devastation by Supertyphoon “Yolanda” was a reminder for the country to prepare for calamities.
The Philippines is considered one of the most disaster-prone countries in the world.
Fund initiatives
The country’s finance chief said the government should move forward and take into account climate-resiliency measures in its annual fiscal program.
“We need to fund initiatives that will make public buildings, for instance, withstand the ‘Yolandas’ of the future,” he said.
Supertyphoon “Yolanda,” which struck the country in November, led to the deaths of thousands and significant economic losses.
Hardest hit were Eastern, Western and Central Visayas, which account for about 12 percent of the country’s gross domestic product.
Based on estimates, the calamity caused the economy’s growth to slow down to a range of 4.1 to 5.9 percent in the fourth quarter of 2013 compared with the average of 7.4 percent posted in the first three quarters of the same year.
Purisima said that if proper resiliency measures were implemented, the drag to economic growth of disasters would be eased.
According to an assessment report released by the National Economic and Development Authority (Neda), the government needs P360.8 billion to fund its post-Yolanda reconstruction and rehabilitation master plan.
Master plan
The master plan includes the reconstruction of public infrastructure and government facilities, building shelter for the affected families, and providing farming and fishing materials to affected farmers and fishermen.
The government aims to meet the funding requirement partly through its internal revenues and partly through foreign loans.