Department of Finance (DOF) Secretary Benjamin Diokno said on Friday, July 7, that the national government's revenue will not be impacted by the new law that condones loans to Agrarian Reform Beneficiaries (ARBs) totaling over P57 billion.
After President Ferdinand R. Marcos Jr. signed the New Agrarian Emancipation Act, or Republic Act (RA) 1193, Diokno clarified that it would not impact the “Fiscal Picture” of the Government.
“Wala pong impact ito sa fiscal picture ng gobyerno dahil na-plano na po namin over the next five years kung ano ‘yung deficit target natin, anong revenues. Hindi po kasama ito sa computation. So, wala pong impact ito,” Diokno told reporters during a media interview.
“As mentioned by the President, many agrarian reform beneficiaries. ‘Pag nagpapatakbo po kayo ng gobyerno, hindi lang po efficiency ‘yung inyong iniisip, social justice din po kasama po diyan. So, this will fall under social justice,” he added.
When questioned whether the loan condonation would affect the fiscal situation of the country, Diokno said they will not include its collection.
“In fact, part of it will be condoned over time. So, hindi kasama ito sa estimation ng revenues on the part of the government,” he said.
The new law will benefit around 610,054 Filipino farmers tilling more than 1.7 million hectares of land agrarian reform lands, making them debt-free.
"Pinangako ko sa ating mga kababayan na itutuloy ang Agrarian Reform Program. I'm here today to build on that promise because our beneficiaries deserve nothing less,” according to the President, who also acts as Agriculture secretary.
Based on the current agrarian legislation, each recipient of the Agrarian Reform Program (ARB) is required to pay back the cost of the land that was granted to him over a 30-year period with a 6-percent interest.
“Panahon na para makalaya sila sa pagkakautang na ito. This is why on September 13, 2022, I signed Executive Order No. 4 imposing a one-year moratorium on the payment of amortizations on agrarian debt by the beneficiaries,” President Marcos highlighted.
