Calamity Fund - 2011 National Budget of the Philippines

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 (DPWH) and the Department of National Defense (DND).

"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."