The Department of Budget and Management (DBM) announced Thursday that standby funds from the Contingent Fund and Local Government Support Fund (LGSF) are ready to bolster the Philippines’ rapidly depleting disaster response resources. The DBM’s announcement follows urgent calls from government agencies to replenish the Quick Response Fund (QRF), which is essential for disaster relief, rehabilitation, and preparedness.
Budget Secretary Amenah F. Pangandaman reported that, as of October 2024, the QRF held only P30 billion. “The Department of Social Welfare and Development (DSWD) and Department of Public Works and Highways (DPWH) have exhausted their allocations and are now requesting additional funds,” she said. Other agencies, including the Departments of Agriculture, Health, and Education, the Philippine National Police, and the Bureau of Fire Protection, depend on the QRF for swift disaster response.
Standby Funds on Standby for Disaster Relief
Pangandaman stated that, if necessary, agencies could request additional funds from the DBM through the Local Government Support Fund—Financial Assistance (LGSF-FA) to Local Government Units. Under Local Budget Circular No. 155, this fund allows for financial support to local government units for disaster-related projects, including equipment procurement for response and recovery.
According to the 2024 General Appropriations Act, the National Disaster Risk Reduction and Management Fund (NDRRMF) can refill QRF allocations once they are 50% depleted. Pangandaman noted that Unprogrammed Appropriations may be activated if the Contingent Fund runs low.
Funding Challenges Ahead for Disaster Preparedness
Finance Secretary Ralph G. Recto raised concerns about the sustainability of disaster funding, revealing that the NDRRMF is nearing depletion. Recto criticized a recent Supreme Court-issued temporary restraining order (TRO) that froze a P30-billion transfer of excess funds from the Philippine Health Insurance Corporation (PhilHealth) to the National Treasury. He argued that these funds could have supported the nation’s disaster response efforts.
“We’re almost out of resources. That P30 billion could have made a difference for calamities,” Recto said on the sidelines of the DBM budget deliberations. However, he reassured that the Philippines would end the year with a “positive cash balance” and noted that the country has standing agreements with the World Bank for calamity loans if required.
As the Philippines braces for future natural disasters, government agencies emphasize the need for a more robust and sustainable funding strategy to ensure readiness in the face of increasing environmental challenges.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.