By Beatriz Marie D. Cruz, Senior Reporter
THIRTY-FIVE BUSIness and civil society groups on Thursday urged lawmakers to remove unjustified budget insertions from the proposed 2027 national budget and restore funding for foreign-assisted and transport infrastructure projects.
“We call on the leaders of both Houses of Congress — Senate President Sherwin T. Gatchalian, House Speaker Faustino G. Dy III, Senate Finance Committee Chair Joseph Victor G. Ejercito, and House Appropriations Committee Chair Mikaela Angela B. Suansing — to remove from the proposed P7.2-trillion 2027 national budget every congressional insertion that has no technical basis,” the groups said in a joint statement.
The statement was issued after the House of Representatives earlier this month approved on third reading House Bill No. 10858 or the proposed General Appropriations Act of 2027.
The business groups raised concern that more than P180 billion were added to the Department of Public Works and Highways’ (DPWH) budget through the Budget Amendments and Review Subcommittee.
“Independent budget watchdogs report that these additions cover at least 6,000 projects, raising the DPWH project count in the National Expenditure Program (NEP) to at least 16,000. Many appear as lump sums for multi-purpose buildings and access and bypass roads, without published project lists or named proponents,” they said.
Business groups said they found it “deeply troubling” that the additional DPWH allocations were funded by reportedly cutting around P130 billion from foreign-assisted projects (FAPs), P9.5 billion supposedly for calamity funds, P1.76 billion from the Epifanio de los Santos Avenue (EDSA) Busway budget, and P4.9 billion meant for health programs.
“Foreign-assisted projects are the country’s most rigorously prepared infrastructure — backed by feasibility studies, financing commitments, and international procurement standards. Cutting them delays the high-impact projects that lower logistics costs and attract investments,” they said.
“Raiding calamity funds in a country that is exposed to disasters is indefensible.”
Business groups, including the Management Association of the Philippines (MAP), Makati Business Club and Philippine Chamber of Commerce and Industry, warned against repeating past budget abuses, citing the flood control corruption scandal.
“Insertions in the 2023 to 2025 budgets were linked to ghost and substandard flood control projects that betrayed public trust, wasted scarce resources, and left communities exposed to floods,” they said.
“The 2027 budget must not repeat that history.”
The groups urged Congress to remove budget insertions that have no technical basis.
“An item should stay only if it is backed by a feasibility study or detailed engineering design, is consistent with the implementing agency’s master plans, and was validated by that agency as ready for implementation in 2027,” they said.
The groups also called to restore the funds taken from FAPs, calamity funds, EDSA Busway and health programs, unless Congress can publicly justify each reduction.
Lawmakers must also scrap special provisions that allow agencies to modify or replace projects after its enactment, they said.
Amendments to the budget should also be specified down to the project, location, amount, source of funds, justification, and proposing legislator, they added.
Budgetary changes must be published before the Senate approves the budget bill on second reading and before the bicameral hearings begin, they said.
They also noted there should be no new items inserted during the bicameral conference committee meetings, which should be fully livestreamed.
“We welcome the commitments made by Senate President Gatchalian and Senator Ejercito that the Senate will scrutinize the House version line by line and will not accept last-minute insertions. We likewise acknowledge Speaker Dy’s pledge of an open budget process,” the groups said.
The business groups emphasized the need for the timely passage of the 2027 budget bill and opposed a reenacted budget.
“A budget free of politically driven insertions will strengthen investor confidence, protect the country’s fiscal space, and ensure that every peso builds the infrastructure, schools, and health services the nation truly needs,” according to the groups.
The joint statement was also signed by the Federation of Philippine Industries, Inc., Employers Confederation of the Philippines, Federation of Filipino-Chinese Chambers of Commerce & Industry, Inc., Financial Executives Institute of the Philippines, Fintech Alliance.PH, Foundation for Economic Freedom, and the Philippine Exporters Confederation, Inc.
SENATE TO RESTORE FUNDING
Speaking to reporters, Mr. Gatchalian said the Senate is scrutinizing the budget passed by the lower chamber.
“We are studying the House’s amendments one by one to see if they have basis,” he said on the sidelines of Federation of Philippine Industries, Inc.’s Business Summit on Thursday.
The Senate is also looking to reinstate funding meant for FAPs in next year’s budget, with a focus on transportation infrastructure.
“We’re also studying some amounts to restore funding for FAPs,” Mr. Gatchalian said, citing the subway and commuter rail projects in particular.
Mr. Gatchalian also said he agrees that next year’s budget should have a line item for the EDSA busway project.
Amid tight fiscal space, the Senate is seeking to reallocate funds by slashing nonessential expenses, such as official travel, seminars, and conferences.
The Senate finance panel is currently deliberating on the budget bill, with its committee report expected by the second or third week of November, Mr. Gatchalian said.
Mr. Gatchalian said lawmakers do not want a reenacted budget for next year.
“That’s our target. We cannot afford a reenacted budget because our economic growth is only at [around] 2%,” he said, citing second-quarter growth data.
Joy G. Aceron, convenor-director of transparency group Government Watch (G-Watch), warned that 2027 being a pre-election year could prompt politicians to divert public funds toward partisan interests.
“Since it is nearing elections, politicians are desperate to corner funds that they can use for poll-related spending,” she said in a Facebook Messenger chat.
Following last year’s flood control scandal, any budgetary insertions will further weaken public trust, Ms. Aceron added.
previous post
