Pangandaman: Contingent and local government support funds ready to aid disaster-stricken areas

Department of Budget and Management (DBM) Secretary Amenah Pangandaman assured the public that the government is prepared to support disaster-stricken areas following consecutive natural calamities over recent months. Her statement comes amid concerns about certain agencies’ depleted Quick Response Funds (QRF), especially following a series of weather disturbances.

The QRF is a built-in standby fund allocated for disaster preparedness, relief, and rehabilitation activities. “The Quick Response Fund is divided across various agencies. Agencies such as the Department of Agriculture, Department of Education, Department of Social Welfare and Development (DSWD), Department of the Interior and Local Government, Philippine National Police, Bureau of Fire Protection, Office of Civil Defense, Department of Public Works and Highways (DPWH), Department of Health, and Department of Transportation – Philippine Coast Guard, all have allocations,” Pangandaman explained.

She noted that as of October 24, approximately P30 billion was allocated for QRFs across these agencies, of which about P15 billion had been obligated. However, agencies like the DSWD and DPWH have already exhausted their respective QRFs and are now seeking replenishment.

The 2024 General Appropriations Act (GAA) allows for the replenishment of agency QRFs from the existing balance of the National Disaster Risk Reduction and Management Fund (NDRRMF). Agencies may request additional funds from the DBM once at least 50 percent of their current QRFs have been utilized.

Pangandaman explained that agencies can also access other funding sources, including the Contingent Fund, Unprogrammed Appropriations, and Local Government Support Fund (LGSF), to support disaster response efforts. “The good news is that we still have approximately P7 billion in the Contingent Fund, which is the first source we can use,” she added.

While some agencies’ QRFs remain sufficient, the DSWD and DPWH have already requested replenishments. To bolster disaster relief efforts, Pangandaman highlighted that agencies could also draw on funds from their regular projects and programs, citing the DSWD’s Assistance to Individuals in Crisis Situations (AICS) and the DPWH’s maintenance budget.

Additional funds are also available under the Unprogrammed Appropriations, which the government can tap into if the Contingent Fund becomes exhausted.

Addressing support for local government units (LGUs), Pangandaman noted that LGUs can request assistance from the DBM under the Local Government Support Fund – Financial Assistance to Local Government Units (LGSF-FA to LGUs).

“In previous years, typhoons and natural disasters were not included in the LGSF menu. However, with the increasing frequency of these events, we’ve expanded the LGSF list to include disaster response, so we can provide assistance to affected LGUs,” she said.

Under Local Budget Circular No. 155, the LGSF-FA to LGUs supports various projects, including disaster response, rehabilitation, and recovery initiatives, and allows for the procurement of disaster response and rescue equipment.

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