The National Irrigation Administration (NIA) said it will still collect irrigation service fees (ISFs) next year, as the subsidy for ISFs is not yet available, according a senior government official.
Undersecretary Maia Chiara Halmen Reina A. Valdez of the Office of the Cabinet Secretary said the Department of Budget and Management (DBM) did not allocate funds to subsidize the P4-billion ISFs next year.
“There are reports that there would be zero ISFs. However, that kind of decision must emanate from the economic managers. The DBM did not provide funds to cover the ISF collection for next year,” Valdez told reporters on the sidelines of the National Food Authority’s 44th anniversary celebration in Quezon City.
The ISFs are collected by the NIA from farmers as payment for irrigation water delivered by the agency.
Valdez said an amendment of the NIA charter is needed to stop the agency from collecting ISFs.
The agency attached to the Office of the President uses the money for the operation and maintenance of irrigation systems in the country.
“While there’s no clear policy yet on that, the status quo will remain. Because if the [NIA] will not collect ISF, what will they [NIA] use to maintain and operate the irrigation systems?” she said.
Earlier, Agriculture Secretary Emmanuel F. Piñol said President Duterte has ordered the allocation of an additional P4 billion to the NIA budget for next year to subsidize the fees paid by small farmers for irrigation services.
“During the Cabinet meeting on August 22, President Duterte has confirmed his commitment of free irrigation for the country’s millions of rice farmers starting the first planting season in 2017. An allocation of P4 billion will be included in the NIA budget for 2017 to cover the ISF collections,” Piñol said in a statement.