CALAMITY FUND IN THE PHILIPPINES - ABO LAW FIRM
CALAMITY FUND IN THE PHILIPPINES

CALAMITY FUND IN THE PHILIPPINES

In May 07, 2010, then President Gloria Macapagal-Arroyo signed in to law Republic Act (RA) 10121 or the “Philippine Disaster Risk Reduction and Management Act of 2010”.  In a nut shell, this law’s aim is to have a framework for the mitigation of risks, programs for quick responses during the time of disasters and recovery thereafter. An important aspect of the Disaster Risk Reduction and Management Plan is its implementation which is only possible if there ample is ample funding. Hence, RA 10121 have provisions for a Local Disaster Risk Reduction and Management Fund (LDRRMF) and a National Disaster Risk Reduction and Management Fund (NDRRMF) which were previously called the calamity fund in the general appropriations act.

CALAMITY FUND-LOCAL DISASTER RISK REDUCTION AND MANAGEMENT FUND (LDRRMF)

The LDRRMF is formerly called the local calamity fund which is the one used by the local government units (LGUs) in preparing for disasters and their responses.

According to section 21 of the LDRRMF “not less than five percent (5%) of the estimated revenue from regular sources shall be set aside as the LDRRMF to support disaster risk management activities such as, but not limited to, pre-disaster preparedness programs including training, purchasing life-saving rescue equipment, supplies and medicines, for post-disaster activities, and for the payment of premiums on calamity insurance.” Putting a cap for the LDRRMF ensures that the local government units (LGUs) have enough funding for the disaster risk and management planning.

Of the amount appropriated for the LDRRMF, thirty percent (30%) shall be allocated as Quick Response Fund (QRF). The QRF shall be used as a stand-by fund for relief and recovery programs in order that situation and living conditions of people In communities or areas stricken by disasters, calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.

CALAMITY FUND-NATIONAL DISASTER RISK REDUCTION AND MANAGEMENT FUND (NDRRMF)

The NDRRMF serves the same purpose as the LDRRMF but on a national scale. The specific amount from this fund to be distributed to the LGUs or other government agencies shall be determined by the President of the Philippines. Further, like the LDRRM,  thirty percent (30%) of the NDRRMF shall be allocated as Quick Response Fund (QRF) or a stand-by fund for relief and recovery programs in order that situation and living conditions of people In communities or areas stricken by disasters, calamities, epidemics, or complex emergencies, may be normalized as quickly as possible.

A portion of the funds of the LDRRMC and the NDDRMF shall be released upon the the declaration of a state of calamity.

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