PCAFI reiterates call for bigger agri budget

CEBU, Philippines — The Philippine Chamber of Agriculture and Food Inc. (PCAFI) has reiterated its call for government to raise the budget for agriculture.

This is in consideration to agriculture’s big contribution of 9 to 10 percent to the Philippines’ gross domestic product (GDP).

PCAFI President Danilo V. Fausto said a minimum of 10 percent of the IRA (Internal Revenue Allocation) of LGUs (Local Government Units) should be made mandatory allocation for agriculture if national government fund will be devolved to local governments.

“This is just proper since agriculture accounts for 10 percent of the GDP.  Budget for agriculture should increase, rather than decrease,” said Fausto.

Fausto pushed that at least 10 percent of the IRA of LGU should be allocated for food security and agriculture to ensure rural development once national budget is devolved locally under President Duterte’s proposed executive order (EO).

During the PCAFI’s virtual membership meeting held last week, Senator Juan Miguel F. Zubiri, said given an increase in budget for agriculture, the proposed EO will play a significant role ensuring farmers’ welfare and agricultural production.

“Some of our LGU leaders are lawyers or doctors.  That’s why it’s important to elect leaders who have the heart for agriculture,” said Zubiri.

Fausto has been stressing that the agriculture sector gets barely two percent of the total national budget while contributing 9-10 percent to the GDP.

With the P4.5trillion 2021 budget, DA should get at least P405 billion in the national budget, Zubiri said.

Duterte’s draft EO ordering some executive functions’ transfer to local government supports implementation of the Supreme Court ruling on the Mandanas-Casas cases in 2022.

Zubiri said he is pushing for other important agriculture policies to be legislated in order to advance growth of the farm sector.

Fausto said livestock and poultry should get at least P112.5 billion from the national budget. Poultry and livestock plays a highly significant role in the economy as it has important multiple effect in many other sectors.

“The feed industry is a P510 billion industry.  Assuming two-thirds (67%)  of feeds go to livestock and poultry, that represents P340 billion,” said Fausto.

Fausto reiterated that DA does not really need to raise imports of meat and poultry given adequate distribution nationwide of the supply.

The supply is enough to fill the local demand. The need is to channel poultry and meat production, particularly from Visayas and Mindanao where these are produced, to where these are needed—Metro Manila and other cities.

 Poultry and livestock plays a highly significant role in the economy with its multiplier effect in many other sectors.

The feed industry is a P510 billion industry.  Assuming two-thirds (67%) of feeds go to livestock and poultry, that represents P340 billion,” said Fausto.

The Supreme Court ruling was based on a petition of Batangas Gov. Hermilando Mandanas and former Bataan Gov. Enrique Garcia Jr. to base LGU’s IRA on 40 percent of the collection of all national taxes. These include those collections of Bureau of Customs and Bureau of Internal Revenue.

The new ruling increases LGUs’s IRA, which is only 40 percent of national internal revenue taxes collected by BIR. The new ruling will be implemented in 2022.