DBM's Pangandaman says reenacted budget to hurt economy

Budget Secretary Amenah Pangandaman said Thursday the Department of Budget and Management (DBM) and the entire Executive branch of the government is ready to cooperate with Congress to iron out alleged questionable items in the proposed P6.793-trillion national budget for 2026.

In a statement following a joint press conference with Public Works Secretary Vince Dizon on Wednesday evening, Pangandaman sounded the alarm over a possibility of a reenacted budget next year after leaders of the House of Representatives’ move for the return of the 2026 National Expenditure Program (NEP) to the DBM. 

"Siguro ang importante dito is that the Executive is very much willing to work with the Congress to make sure na maayos 'yung ating budget at magkaroon tayo ng budget. Again, 'pag wala kang budget, wala kang maipo-provide sa mga kababayan natin. Mas masakit 'yun," the Budget chief said.

(What is important here is that the Executive is very much willing to work with the Congress to make sure that our budget is aboveboard. Again, if we don’t have a budget we can’t provide services to our citizens. It will be more painful.)

"Dito naman sa DBM, ready… assuming magkaroon tayo ng reenacted budget. Pero s'yempre, 'di ba nga sinabi natin na 'yung reenacted budget, magko-cause ng downturn ng ating ekonomiya, especially now na nakikita natin 'yung malaking kontribusyon ng ating budget sa ating ekonomiya. Ayaw naman natin na mawala 'yun," she added.

(Here in DBM, we are ready… assuming we will have a reenacted budget. But, like we have said before, a reenacted budget would cause a downturn for our economy, especially since it has a significant contribution to our economy.)

What is a reenacted budget?

The DBM defines a reenacted budget as a situation where the previous year’s General Appropriations Act (GAA) is extended and remains in effect for a preceding year until such time Congress passes a budget bill into law.

Deputy Speaker and Antipolo Representative Ronaldo Puno, chairman of the National Unity Party, said in a joint press conference with other political party leaders from the Lakas-CMD, Nacionalista Party and Nationalist People’s Coalition, that they are recommending to return the proposed 2026 national budget to the DBM due to “erroneous entries” such as zero allocations for multi-year programs and allocations to already finished projects.

President Ferdinand "Bongbong" Marcos, Jr. earlier ordered a sweeping review of the proposed 2026 DPWH budget to cleanse it of unmeritorious provisions.

In his fourth State of the Nation Address (SONA), Marcos warned that the government would operate under a reenacted budget in 2026, warning that he will veto a proposed budget bill that will not be in harmony with his administration’s programs and priorities.

DPWH budget

Meanwhile, Pangandaman and Dizon committed to a two-week timeline to review the proposed P880-billion budget of the Department of Public Works and Highways (DPWH) —which is under the spotlight for alleged anomalous flood control projects.

"Nag-usap kami ni Sec. Mina [Pangandaman], we both agreed on a two-week timeline – dalawang linggo – maximum. Pwedeng mas maiksi. So, kailangan lang s'yempre, pagtrabahuan namin ito nang maigi, pupukpukin natin ang DPWH – ang ating mga kasamahan doon – para magkaroon tayo honest-to-goodness review," Dizon said.

(Sec. Mina and I discussed this, we both agreed on a two-week timeline – a maximum of two weeks. It could be shorter. We really just need to work on this eagerly. We will focus hard on this together with our colleagues in the DPWH for us to have an honest-to-goodness review.)

“I have full confidence in Secretary Dizon’s leadership in carrying out this review. With the strong mandate from the President and our shared commitment to transparency and accountability, I am certain that the review will be exhaustive and uncompromising. Walang makakalusot, at matatama ang mga mali (Nothing can slip through and the wrongs will be corrected),” Pangandaman said.

The Budget chief siad the DBM committed to providing all the necessary documents, data, and technical assistance to make the review faster, efficient, accurate, and more transparent.

“We will review, revisit, and do the necessary changes based on the recommendations of the honorable members of Congress,” said Dizon.

The DPWH, for its part, is expected to submit a more thorough and updated list of infrastructure projects, especially flood control, “to ensure that every peso in the people’s budget is accounted for and directed toward programs that truly benefit the Filipino people.” — Ted Cordero/RSJ, GMA Integrated News