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Advocates Philippines
DOF Chief Says Loan Condonation For Agrarian Reform Beneficiaries Will Not Affect Revenues
Photo credit: PCO
Department of Finance (DoF) Secretary Benjamin Diokno confirmed on Friday that the condonation of the P57 billion loan incurred by agrarian reform beneficiaries (ARBs) would not have an impact on the revenue of the national government.
Speaking to reporters after President Ferdinand R. Marcos Jr. signed the New Agrarian Emancipation Act into law at Malacañan Palace, Diokno emphasized that the loan condonation, facilitated through the provisions of the new agrarian law, would not affect the government's fiscal position.
Diokno explained, "This will have no impact on the fiscal picture of the government because we have already planned our deficit target and revenues for the next five years, and this is not included in the computation. So, it will not have any impact." He further highlighted that the loan condonation would align with the principles of social justice, benefiting numerous agrarian reform beneficiaries, as emphasized by President Marcos.
Addressing concerns about the loan condonation's impact on the country's fiscal situation, Diokno stated, "We did not include the collection of this loan. In fact, part of it will be condoned over time. Therefore, it is not included in the government's revenue estimation."
The New Agrarian Emancipation Act, also known as Republic Act No. 11593, is expected to provide relief to approximately 610,054 Filipino farmers who cultivate over 1.7 million hectares of agrarian reform lands. This law will effectively eliminate around P57 billion in agrarian arrears, relieving farmers of their debts.
Previously, under existing agrarian laws, each agrarian reform beneficiary (ARB) was required to repay the cost of the land allocated to them over 30 years, with an interest rate of 6 percent.
President Marcos highlighted the importance of liberating the farmers from this burden. "It is time for them to be freed from this debt. This is why on September 13, 2022, I signed Executive Order No. 4, which imposed a one-year moratorium on the payment of amortizations on agrarian debt by the beneficiaries," he said.
Speaking to reporters after President Ferdinand R. Marcos Jr. signed the New Agrarian Emancipation Act into law at Malacañan Palace, Diokno emphasized that the loan condonation, facilitated through the provisions of the new agrarian law, would not affect the government's fiscal position.
Diokno explained, "This will have no impact on the fiscal picture of the government because we have already planned our deficit target and revenues for the next five years, and this is not included in the computation. So, it will not have any impact." He further highlighted that the loan condonation would align with the principles of social justice, benefiting numerous agrarian reform beneficiaries, as emphasized by President Marcos.
Addressing concerns about the loan condonation's impact on the country's fiscal situation, Diokno stated, "We did not include the collection of this loan. In fact, part of it will be condoned over time. Therefore, it is not included in the government's revenue estimation."
The New Agrarian Emancipation Act, also known as Republic Act No. 11593, is expected to provide relief to approximately 610,054 Filipino farmers who cultivate over 1.7 million hectares of agrarian reform lands. This law will effectively eliminate around P57 billion in agrarian arrears, relieving farmers of their debts.
Previously, under existing agrarian laws, each agrarian reform beneficiary (ARB) was required to repay the cost of the land allocated to them over 30 years, with an interest rate of 6 percent.
President Marcos highlighted the importance of liberating the farmers from this burden. "It is time for them to be freed from this debt. This is why on September 13, 2022, I signed Executive Order No. 4, which imposed a one-year moratorium on the payment of amortizations on agrarian debt by the beneficiaries," he said.
Jul 8, 2023
