Metro Manila (CNN Philippines, July 11) — The condoned debt of farmers worth ₱57 billion is “not a burden to the government” as the accounts have long been dormant, the Agrarian Reform chief said Tuesday.
\”It is not going to affect the economy simply because these are dormant accounts already… We will address this on a multi-year approach, so it’s not so much of a burden to the coffers of the government,\” Department of Agrarian Reform (DAR) Secretary Conrado Estrella III told CNN Philippines’ The Final Word.
Estrella added that the government has already paid in advance other landowners and allotted funds to those who still have yet to be paid.
The newly signed Agrarian Emancipation Act – dubbed the “Happy Law” – writes off the amortization of principal payments, interests, and penalties of farmers on the lands they are presently tilling.
The act will benefit 610,054 farmers, covering 1,173,101.575 hectares of agrarian reform lands.
\”It is always a part of efficient fiscal management to also consider social justice. That is what we’re doing now. Hopefully, this will help us take off,\” the DAR chief added.
Estrella in a briefing last week said the government would save more in expenses by offering the land to the farmers rather than working to collect the loans.
He said the law is set to be implemented on July 24.
