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Eighteenth Congress oul )
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HOUSE BILL No. _°734 MOEXS

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

AN ACT
APPROPRIATING THE SUM OF SIX BILLION PESOS (P6,000,000,000.00) AS
SUPPLEMENTAL APPROPRIATIONS FOR F.Y. 2019 AND FOR OTHER
PURPOSES

EXPLANATORY NOTE

According to the Third Quarter Report of the Philippine Statistics Authority,
palay production last July to September 2019 declined by 4.5% (3.05 million metric
tons) from the 2018 output of 3.2 million metric tons. During these months, average
farmgate price of palay is Php18.27 per kilogram, 13.1% lower than previous year’s
average price of Php21.02 while the rice wholesale price also decreased from
previous year’s level of Php41.78 to Php39.84 per kilogram. *

The intensifying effects of climate change and influx of imported rice are few
of the reasons for the alarming drop in palay prices. Just this year, 51 LGUs declared
a state calamity due to droughts and dry spells caused by EI Nifio with an estimated

Php7.9 billion worth of damages to agriculture, affecting 247,610 farmers in 10

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https://psa.gov.ph/sites/default/files/Palay%20and%20Corn%20Quarterly%20Bulletin%2C%
200ctober%202019.pdf



provinces and 41 cities and municipalities. ? As one of the pillars of economic
development, the agriculture sector needs assistance during this time of distress,
particularly the rice farmers and farm workers, to encourage them to continue
farming.

This bill therefore seeks to appropriate Six Billion Pesos
(Php6,000,000,000.00) to fund the Unconditional Cash Transfer (UCT) for rice
farmers, which shall serve as an initial, supplementary, and transitional measure and
compensation for the reduction or loss of farm income arising from the effects of
climate change and influx of imported rice.

In view of the foregoing, the passage of this supplemental budget is urgently

‘sought.

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2 https://business.inquirer.net/271553/nearly-p8--billion-worth-of-agri-yields-lost-to-el-nino-
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Eighteenth Congress
First Regular Session

HOUSE BILL NO. 5734

Introduced by
REPRESENTATIVE LOREN B. LEGARDA

AN ACT
APPROPRIATING THE SUM OF SIX BILLION PESOS (P6,000,000,000.00) AS
SUPPLEMENTAL APPROPRIATIONS FOR F.Y. 2019 AND FOR OTHER
PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines
in Congress assembled:

SECTION 1. Appropriations. - The sum of Six Billion Pesos
(P6,000,000,000.00) is hereby appropriated to supplement the FY 2019 Budget under
the General Appropriations Act of 2019 (Republic Act No. 11260) for the purpose of
providing initial, unconditional cash transfers to rice farmers.

SEC. 2. Use and Release of Funds. — The amounts appropriated herein shall
be used to provide direct cash transfers to vulnerable rice farmers who are planting
one (1) hectare or less, as compensation for the reduction or loss of farm income
arising from the influx of imported rice. Releases from this Fund shall be made by the
Department of Budget and Management (DBM) directly to the Department of
Agriculture.

SEC. 3. Availability of Appropriations. - The appropriations authorized in this
Act shall be available for release and obligation for the purpose specified until

December 31, 2020.


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SEC. 4. Submission of Reports. — The DBM and the implementing agency shall
submit, either in printed form or by way of electronic document, to the Senate
President, the Speaker of the House of Representatives, and the Commission on
Audit, the quarterly accountability reports on the utilization of funds. The DBM and the
DBM's web administrator or his/her equivalent shall be responsible for ensuring that
the said quarterly reports are likewise posted on the official website of the DBM and
the implementing agency.

Releases from the said Fund shall be subject to the submission of a special
budget pursuant to Section 35, Chapter 5, Book VI of Executive Order No. 292, series
of 1987.

SEC. 5. Separability Clause. — \f for any reason, any section or provision of this
Act is declared to be unconstitutional or invalid, the other sections or provisions of this
Act which are not affected shall continue in full force and effect.

SEC. 6. Repealing Clause. — All provisions of existing laws, orders, rules and
regulations or parts thereof which are in conflict or inconsistent with the provisions of
this Act are hereby repealed, amended, or modified accordingly.

SEC. 7. Effectivity. — This Act shall take effect immediately upon its publication
in the Official Gazette or in at least two (2) newspapers of general circulation in the
Philippines.

Approved,