In a media interview after President Ferdinand R. Marcos Jr. signed into law the New Agrarian Emancipation Act in Malacaรฑan Palace, the Finance chief said the condonation of the multi-billion peso loan under the provisions of the new agrarian law would not impact the โfiscal pictureโ of the government.
โWala pong impact ito sa fiscal picture ng gobyerno dahil na-plano na po namin over the next five years kung ano โyung deficit target natin, anong revenues. Hindi po kasama ito sa computation. So, wala pong impact ito,โ Diokno told reporters.
โAnd it will benefit, as mentioned by the President, many agrarian reform beneficiaries. โPag nagpapatakbo po kayo ng gobyerno, hindi lang po efficiency โyung inyong iniisip, social justice din po kasama po diyan. So, this will fall under social justice,โ he added.
When asked if the loan condonation will affect the fiscal situation of the country, Diokno said: โHindi namin kasama โyung pangongolekta nito. In fact, part of it will be condoned over time. So, hindi kasama ito sa estimation ng revenues on the part of the government.โ
The New Agrarian Emancipation Act, or Republic Act No. 11593, will benefit around 610,054 Filipino farmers tilling more than 1.7 million hectares of land agrarian reform lands, making them debt-free from around P57 billion of agrarian arrears.
Under the existing agrarian laws, President Marcos said each agrarian reform beneficiary (ARB) has to pay the cost of land given to him in 30 years with 6 percent interest.
โPanahon 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,โ President Marcos said.
โYet, I know that the government can and must do more to alleviate the plight of our agrarian reform beneficiaries,โ he pointed out.
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