The government may tap the calamity fund under the 2026 national budget to provide fuel subsidies to transport workers, farmers, and fisherfolk if global oil prices continue to rise due to the ongoing Middle East conflict, the Department of Budget Management (DBM) said Tuesday.
During a Senate budget hearing, Committee on Finance chairperson Sherwin Gatchalian warned that prolonged spikes in oil prices could push the country into a situation similar to a national calamity, potentially justifying the use of disaster-related funds.
“Kung humaba pa itong disaster ngayon at kailangan magbigay ng fuel subsidies to public utility vehicle drivers, to farmers, to fisherfolk, puwede na ma-access ‘yun,” Gatchalian said.
He noted that if oil prices remain around $100 per barrel for several months, the economic impact could be severe enough to warrant emergency assistance.
In response, DBM Undersecretary Janet Abuel said funding sources are already being identified across government agencies to cushion the impact of the crisis.
Abuel told lawmakers that the government is reviewing available program allocations and lump-sum funds that could be mobilized if needed.
“Nakakita na po kami sa iba’t ibang agencies based on their PAP (programs, activities, and projects), which would also include ‘yung ating lump sum, the NDRRM fund,” Abuel said.
The discussion comes as some lawmakers push for additional government spending to address the economic fallout from geopolitical tensions in the Middle East.
Senate Deputy Majority Leader Risa Hontiveros earlier called for a P52.8-billion supplemental budget aimed at cushioning the impact of rising oil prices.
Among the possible funding sources she cited is the National Disaster Risk Reduction and Management Fund (NDRRMF), which is included in the 2026 national spending plan.
Calamity fund provision
Under the 2026 General Appropriations Act of 2026, the government set aside P39.8 billion for disaster-related spending.
Of that amount, P23.4 billion is earmarked for the National Disaster Risk Reduction and Management program, which can finance reconstruction, rehabilitation, repair, relief assistance, and other disaster-response activities.
Abuel said the law’s special provisions allow the fund to be used not only for natural disasters but also for crises triggered by human actions or international conflicts, provided there is a formal declaration and the spending is approved by the President.
“If we are affected by an international devastation, for example, and maapektuhan tayo, that can be considered as man-made on our part, as long as there is a declaration,” she said.
She added that another option would be to declare a national emergency, though that process would take longer because it requires legislation from Congress—similar to the emergency powers granted under the Bayanihan to Heal as One Act during the COVID-19 pandemic.