Gov’t eyes P45B fund for ‘Yolanda’ rebuilding

The extent of damage is shown in this photo taken in Tanauan town, Leyte province, on Tuesday Nov. 19, 2013. The government has identified P45 billion from next year’s national budget that can be quickly realigned to fund reconstruction in areas devastated by Supertyphoon “Yolanda.” AP

MANILA, Philippines—The government has identified P45 billion from next year’s national budget that can be quickly realigned to fund reconstruction in areas devastated by Supertyphoon “Yolanda.”

Budget Secretary Florencio Abad said the amount could be realigned from the “unprogrammed funds” for next year.

Unprogrammed funds are budget allocations for unidentified projects and intended to meet unexpected expenditure requirements, such as emergencies.

Abad said that under the originally proposed 2014 national budget, P140 billion was earmarked as unprogrammed funds. Of the amount, P45 billion was particularly intended for reconstruction initiatives that may be required in the event of disasters.

Given the huge number of Filipinos affected by the supertyphoon, Abad said there was no doubt that the P45 billion could be realigned for post-Yolanda reconstruction initiatives.

The proposed national budget for 2014 amounts to P2.268 trillion, up from this year’s P2.06 trillion.

Realigning pork barrel

Abad said the government also would see whether the budget allocation for the Priority Development Assistance Fund (PDAF) of legislators for 2014—to the tune of P25 billion—could be realigned for post-Yolanda reconstruction activities.

He made the statement after the Supreme Court on Tuesday afternoon ruled that PDAF, a pork barrel, was unconstitutional.

Once the reconstruction plan is released, Abad said the government would determine how much more it would need to raise on top of the P45 billion in order to realize the plan.

Abad said the government could use cheap loans from foreign lenders to help fund the reconstruction activities.

Debt moratorium pushed

In Davao City, militant lawmakers asked Malacañang to negotiate a payment moratorium with the country’s debtors, saying it would free up funds that could be used for a massive program to rehabilitate areas devastated by Yolanda.

Bayan Muna Representatives Neri Colmenares and Carlos Zarate said in a joint media statement that the Aquino administration should “ask for debt moratorium at the minimum or a debt write off at the maximum.”

“So that the country would be given ample funds and time to rehabilitate,” they said.

They said that this year alone, total foreign borrowings hit P2 trillion for which a budget of P333.9 billion was set aside for debt servicing.

“We should review the national budget and see if we can free more funds intended for debt servicing so that these can be rechanneled to the rehabilitation of devastated areas,” they said.

“Cases in point are the debt management fund which is P85.18 billion and the international commitments fund which is P4.8 billion,” Colmenares said.

Foreign debt fund

He said that from his calculation, the national government would be able to raise P125 billion by suspending its foreign debt payment, which “would go a long way in the long term rehabilitation of areas affected by calamities.”

Colmenares said the savings would be so huge that it would not only benefit Yolanda victims but also those still suffering in the aftermath of last month’s 7.2-magnitude earthquake in Bohol and last December’s Typhoon “Pablo” in Mindanao.—With a report from Allan Nawal, Inquirer Mindanao

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