DBM releases over P87M for tobacco industry support

The Department of Budget and Management (DBM) said Thursday it has approved the release of over P80 million worth of funds to support the local tobacco industry.

In a news release, the DBM said Budget Secretary Amenah Pangandaman approved the release of Notice of Cash Allocation (NCA), on May 9, amounting to P87.632 million for the National Tobacco Administration's (NTA) second quarter requirement.

The Budget Department said the release of funds answers the call of President Ferdinand Marcos Jr. and the Private Sector Advisory Council-Agriculture Sector Group (PSAC-ASG) to bolster the support for the tobacco sector.

"We understand that agriculture is part of the backbone of our economy. For this reason, our government ensures that every segment of our agricultural landscape receives the support and resources it needs to thrive," said Pangandaman.

The NTA, an attached agency under the Department of Agriculture, is the sole government body that oversees and regulates the growth and development of the tobacco industry.

For the fiscal year 2024, the NTA has an authorized appropriation of P550.504 million.

Of the said amount, P175.276 million has already been issued a corresponding Notice of Cash Allocation to fulfill the agency's requirements for the first semester.

The DBM said the NTA's budget shall be used by the agency for its operational needs, sourced from 40% of the balance of collections from specific taxes on locally made Virginia-type cigarettes and tariff duties on imported leaf tobacco.

Funds for the NTA shall be charged against Republic Act 11975, also known as the fiscal year 2024 General Appropriations Act, the Budget Department said. — VDV, GMA Integrated News