Calamity fund can be used for subsidies

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March 11, 2026 | 12:00am

MANILA, Philippines —  The government can tap billions of pesos from the national calamity fund to subsidize fuel costs for sectors affected by surging oil prices, an official from the Department of Budget and Management said yesterday.

DBM Undersecretary Janet Abuel told the Senate committee on finance that the P23.4-billion National Disaster Risk Reduction and Management (NDRRM) Fund – a subset of the P39.8-billion total calamity budget for 2026 – can be mobilized to address crises stemming from international armed conflicts.

According to Abuel, the 2026 General Appropriations Act contains special provisions allowing the fund to cover relief, rehabilitation and services for catastrophes not strictly natural in origin.

She explained that if an international devastation impacts on the country’s economy, it can be treated as a man-made calamity on the domestic front, if declared as such by the President.

“If we are affected by an international devastation, for example… that can be considered as man-made on our part, as long as there is a declaration,” Abuel stated.

Finance committee chairman Sen. Sherwin Gatchalian is pushing for this interpretation, arguing that prolonged oil price hikes have the same devastating effect on the economy as traditional disasters.

Gatchalian noted that if oil prices maintain a $100-per-barrel threshold for several months, the economic strain on farmers, fisherfolk and transport workers would necessitate immediate access to the NDRRM reserves.

“If this disaster drags on and we may need to provide fuel subsidies to public utility vehicle drivers, to farmers, to fisherfolk, we can access (the fund) in my opinion. If it gets to $100 (per barrel) for the next few months, then would be like we’re in a calamity,” Gatchalian said.

But while the calamity fund offers a more immediate route through the NDRRM program, the government – according to Abuel – may also pursue a formal declaration of national emergency, which she characterized as a more laborious path, as it would require Congress to pass special legislation similar to the Bayanihan laws enacted at the height of the COVID-19 pandemic.

Beyond the disaster funds, Abuel assured lawmakers that the DBM has begun auditing various agencies to identify “lump sum” allocations and other projects that could be realigned to support financial aid programs if the conflict in the Middle East escalates further.  – Bella Cariaso, Emmanuel Tupas, Helen Flores, Brix Lelis, Mark Ernest Villeza