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DBM can't release P4-B ACEF fund |
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(December 17, 2003 - Wednesday, Manila Bulletin)
By Melody M. Aguiba The Department of Budget and Management admitted yesterday it cannot immediately release the more than P4-billion Agricultural Competitiveness Enhancement Fund (ACEF) for the agriculture sector as its release "competes with other sectors" in the use of the fund. |
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Nora Oliveros, DBM operations director, told a Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM) hearing that while Special Fund 183 or ACEF records shows a balance of more than P4 billion on its books, she said this cannot be readily released for lack of appropriations cover under the allocated budget approved by Congress.
"There's a problem in the reconciliation of the balance in the records of the Treasury (which holds the cash fund of ACEF) and the DA (Department of Agriculture). Their balances do not jibe. The release of the fund to the DA and the agriculture sector is constricted as the fund has to compete with other sectors. It's really true that it's hard to release it. I've been here for three years and I know this is true," she said. For 2003, only P600 million has been allocated for ACEF as approved by Congress. Under the General Appropriations Act (GAA), any increase from the fund allocation approved by Congress has to be deducted from other sectors. Rep. Jesli Lapuz, COCAFM member, said that as ACEF will expire in 2005, the Treasury will hardly be able to release all the fund for its intended use if allocated fund for ACEF only amounts to P600 million a year. However, Oliveros said government cannot just allocate P2 billion a year for ACEF. "There's a downside to this. If we allocate P2 billion for ACEF for 2004, and P2 billion for 2005, there is an overall global implication. If you release P2 billion for ACEF, there should be a tradeoff that you should decide upon on a global basis," she said. Oliveros also said the Development Budget Coordinating Council (DBCC) has to likewise decide on any adjustment in the fund allocation as the DBCC determines the budget ceiling for each government agency. Small farmers' groups have been pressing the national government to release ACEF for the agriculture sector as they also protest the use of the fund for other commercial scale projects which can be financed by commercial banks. On the other hand, they said small farmers depend on ACEF even as ACEF was meant to protect small farmers from competition brought about by trade liberalization. At present, there is a pending P142-million approved ACEF projects whose funding has not yet been released. On top of this, DA seeks the release of P500-million loan retail fund for small farmers coursed through the Quedan and Rural Credit Guarantee Corp. home latest news |
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