Calamity fund can be used for fuel subsidies — DBM

The Department of Budget and Management (DBM) on Tuesday confirmed that part of the P39.8 billion calamity fund under the 2026 national budget can be tapped to provide fuel subsidies to sectors affected by rising oil prices due to the Middle East conflict.

In a Senate Committee on Finance hearing, DBM Undersecretary Janet Abuel referred to a special provision in the 2026 General Appropriations Act (GAA). 

She explained that the P23.4 billion allocated for the National Disaster Risk Reduction and Management (NDRRM) Program can be used for reconstruction, rehabilitation, repair, aid, relief, and other services, including pre-disaster activities, in response to natural or human-induced calamities, epidemics, crises from armed conflicts or terrorism, and other catastrophes, “subject to the approval of the President.”

Abuel said, “If we are affected by an international devastation, for example, and maapektuhan tayo (and we will be affected), that can be considered as man-made on our part, as long as there is a declaration.”

She added, “Another option is subject to compliance with the Constitutional requirements of the declaration of national emergency, that’s another one. That would be a longer process because it would require legislation as well on part of Congress, parang (like the) Bayanihan Act during COVID.”

Senator Sherwin Gatchalian, who chairs the panel, asked about the increased calamity fund, now at P39.8 billion. “If ever we will give fuel subsidy, obviously that’s considered relief? In other words, it can be used, as worded right now?” he asked.

The DBM official replied in the affirmative, noting that if the calamity fund can be used for relief during local emergencies, “then more so during an international crisis.”

Gatchalian also said, “Kung humaba pa itong disaster ngayon at kailangan magbigay ng fuel subsidies to public utility vehicle drivers, to farmers, to fisherfolk, pwede na ma-access ‘yun because in my opinion, ‘pag tumuloy tuloy siya ng $100 for the next few months, parang nasa calamity na tayo eh.”

Abuel added that the DBM has already identified potential sources for financial aid to address issues stemming from the Middle East conflict.

“Nakakita na po kami sa iba’t ibang agencies based on their PAP (program, activity, and project), which would also include ‘yung ating lump sum, the NDRMM fund,” she said.

On Monday, Senate Deputy Majority Leader Risa Hontiveros urged the passage of a P52.8-billion supplemental budget to respond to the surge in oil prices due to tensions in the Middle East, pointing out that the P23.4 billion NDRRMF under the 2026 budget could be a possible source.

-Paraluman News