Connect with us

Hi, what are you looking for?

Economy

Economic team studying typhoon’s budget implications

PHILIPPINE STAR/MICHAEL VARCAS

THE government’s economic team is studying whether this year’s P4.1-trillion budget will need to be augmented to fund the rehabilitation effort after major typhoons hit Luzon.

“We are in the process of evaluating the damage of the series of typhoons and the amounts required to address these, and will determine whether or not the current budget will be sufficient,” Finance Secretary Carlos G. Domiguez III said in a Viber message Monday.

Officials dealing with the economy are currently reassessing the government’s macroeconomic assumptions and fiscal program after gross domestic product contracted by a deeper-than-expected 11.5% in the third quarter, rendering the earlier full-year forecast of a 4.5-6.6% contraction no longer viable.

Crop damage caused by Typhoon Ulysses (international name: Vamco) hit P2.11 billion as of Sunday after it caused widespread flooding in Northern and Central Luzon and parts of Metro Manila.

Ulysses was among five typhoons that struck the Philippines this quarter, causing P38 billion in damage so far.

Damage inflicted on the agriculture sector could push food prices higher, but early harvests may have limited the damage, according to a senior government economist.

“It will (push prices up) but last year, the same thing (Typhoon Ursula, known internationally as Phanfone) happened so we don’t expect the year-on-year level to be significantly different. Besides, the rice harvest is over. The only price impact will be on vegetables,” Finance Undersecretary and the department’s Chief Economist Gil S. Beltran said in a text message Monday.

The impact on inflation will also be minimal as long as the supply of food continues to flow, Socioeconomic Planning Secretary Karl Kendrick T. Chua said in a Viber message.

Inflation rose 2.5% in October from 2.3% in September, driven by higher prices of food and non-alcoholic beverages. This brought the 10-month average to 2.5%, well within the central bank’s target of 2-4%.

In a report, the National Economic and Development Authority (NEDA) said programs for the agriculture sector should also contain measures that will improve its ability to resist and rebound from natural disasters.

“Hence, we underscore the need for increased investment in climate-resilient technologies and infrastructure. While the DA’s (Department of Agriculture’s) Plant, Plant, Plant program and RCEF (Rice Competitiveness Enhancement Fund) aim to boost productivity, disaster resilience may need to be integrated in these measures to improve the agriculture sector’s adaptability to changing weather conditions,” the NEDA said.

More cold storage facilities and warehouses are also needed to extend the shelf life of produce.

It said disaster management systems of the national and local governments should be improved and backed the creation of the Department of Disaster Resilience to improve coordination, monitoring and implementation of programs across various agencies.

“Proposed legislation will provide a clear operational framework to address the fragmented institutional functions and actions among concerned agencies for all possible calamities in the future, including public health emergencies such as pandemics,” it said.

The World Bank estimated that the Philippines sustains typhoon and earthquake damage of P177 billion each year on average to public and private assets. — Beatrice M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Global crude oil prices have surged in recent weeks, as more economies reopened and demand increased. — PHILIPPINE STAR/ MICHAEL VARCAS By Luz Wendy...

Economy

Philippine President Rodrigo R. Duterte and Chinese President Xi Jinping attend a signing ceremony held in Beijing, China, Oct. 20, 2016. — REUTERS/NG HAN...

Economy

The government has allowed cinemas to reopen with limited capacity after Metro Manila was placed under Alert Level 3. — PHILIPPINE STAR/ MICHAEL VARCAS...

Economy

By Keren Concepcion G. Valmonte, Reporter SHARE buyback programs enable listed companies to maximize key opportunities to secure better business prospects and stabilize shareholders’...

Economy

By Arjay L. Balinbin, Senior Reporter NLEX Corp., operator of North Luzon Expressway (NLEX) and Subic Clark Tarlac Expressway (SCTEX), expects higher traffic volume...

Economy

1 of 4 The all-new Nissan Almera boasts a sleek yet spacious design that’s vastly more compelling than the homely styling of its predecessor’s....

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

Pfizer Inc on Wednesday raised its 2021 sales forecast for its COVID-19 vaccine by 29% to $33.5 billion, and said it believes people will...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!