infuse to confuse

Salceda bats for P44-B infusion to rural economy, agriculture
Claudeth Mocon/BMirror/12.02.08

ALBAY governor and presidential adviser Joey Salceda is batting for a P44-billion fund infusion to the rural economy through government investments in the provinces and agricultural sector as a means of easing the impact of the expected global recession.

“This would be the biggest intervention of the government in response to the global economic crisis,” Salceda said in a briefing with media at the Metrowalk facility in Ortigas, Pasig City.

Salceda, who was once the head of a research team for a Swiss bank, said the government’s stimulus in the countryside would be much bigger if the reinvigorated reforestation program pushes through with a P5-billion initiative fund next year to shield the country from global warming.

Salceda said all these initiatives are intended to create wealth and purchasing power in the countryside with assistance to the farmers and the production of cheap and abundant food for all once the effects of the global financial meltdown start to set in during the first quarter of 2009.

Next year, he said, the Department of Agriculture has a budget of P45 billion and the National Food Authority has a contingency provision for a P32-billion yearly loss, which increases the loss coverage from P8 billion with additional P24 billion.

Salceda said the incremental loss provision of P24 billion will go to farmers’ assistance with P8.5 billion and to consumers’ subsidy (for the poor) with P14.5 billion.

He said there would be more aggressive palay procurement next year, of which P17 billion is set aside to buy palay at P17 a kilo.

Salceda said P20 billion of the 2009 agriculture department’s budget is for subsidy to food producers, of which P10 billion is for the so-called FIELDS program, which involves more infrastructure in irrigation, storage and farm-to-market roads, among other things.

Thus, the government will be able to put food on the table in every Filipino household while the economic storm rages around the Philippines, he said.

Salceda also recently espoused the idea at the 150th general assembly of the Foundation for Upgrading the Standard of Education (FUSE) at the Learning Center for Teachers in the Pearl of the Orient Tower Condominium, Roxas Boulevard, Manila.

Salceda said the government has also allocated P2 billion to help Philippine agriculture exports find markets in Japan after the implementation of the Japan-Philippines Economic Partnership Agreement.