Business, advocacy groups call for removal of 'insertions' in proposed P7.2-T nat'l budget

Business and advocacy groups on Thursday called on Congress to remove alleged congressional insertions from the proposed P7.2-trillion national budget for 2027.

In a joint statement, 35 groups urged leaders of both chambers—Senate President Sherwin Gatchalian, House Speaker Faustino Dy III, Senate Finance Committee Chair Joseph Victor Ejercito, and House Appropriations Committee Chair Mikaela Angela Suansing—to scrap "every congressional insertion that has no technical basis" from the proposed next year's budget.

Signatories in the joint statement are as follows:

• Alyansa Agrikultura
• Cebu Business Club (CBC)
• Cebu Chamber of Commerce & Industry (CCCI)
• Cebu Leads Foundation
• Connected Women
• Employers Confederation of the Philippines (ECOP)
• Federation of Filipino-Chinese Chambers of Commerce & Industry, Inc. (FFCCCII)
• Federation of Philippine Industries (FPI)
• Filipina CEO Circle (FCC)
• Financial Executives Institute of the Philippines (FINEX)
• Fintech Alliance.ph
• Foundation for Economic Freedom (FEF)
• Iloilo Economic Development Foundation (ILED)
• Institute for Solidarity in Asia (ISA)
• Institute of Corporate Directors (ICD)
• Investment House Association of the Philippines (IHAP)
• Justice Reform Initiative (JRI)
• Makati Business Club (MBC)
• Management Association of the Philippines (MAP)
• Move As One Coalition
• Movement for Restoration of Peace & Order (MRPO)
• NextGen Organization of Women Corporate Directors (NOWCD)
• Parish Pastoral Council for Responsible Voting (PPCRV)
• People Management Association of the Philippines (PMAP)
• Philippine Chamber of Commerce and Industry (PCCI)
• Philippine Energy Efficiency Alliance (PE2)
• Philippine Exporters Confederation (PHILEXPORT)
• Philippine Financial & Inter-Industry Pride (PFIP)
• Philippine Institute of Certified Public Accountants (PICPA)
• Philippine Retailers Association (PRA)
• Procurement and Supply Institute of Asia (PASIA)
• Roundtable for Inclusive Development (RFID)
• Shareholders' Association of the Philippines (SharePHIL)
• The Outstanding Women in the Nation's Service (TOWNS) Foundation
• Women Business Council Philippines (WomenBizPH)

"The House General Appropriations Bill (HB 10858), approved on third reading earlier this month by a vote of 281-13, added more than P180 billion in Department of Public Works and Highways (DPWH) allocations through the Budget Amendments and Review Subcommittee (BARSc)," the groups said.

"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," the groups added.

The joint statement was issued after the People's Budget Coalition (PBC) earlier said it found "red flags" amounting to over P1 trillion in allocations in the proposed P7.2 trillion national budget for fiscal year 2027.

These reportedly covered various types of "pork" or discretionary funds under the House-approved General Appropriations Bill (GAB).

"These additions were reportedly funded in part by cutting about P130 billion from foreign-assisted projects, P9.5 billion from calamity funds,P1.76 billion from the EDSA Busway, and P4.9 billion from health programs," the groups said.

"We find this deeply troubling."

The groups further said that foreign-assisted projects are the country's "most rigorously prepared infrastructure," which are backed by feasibility studies, financing commitments, and international procurement standards.

"Cutting them delays the high-impact projects that lower logistics costs and attract investments. Raiding calamity funds in a country that is exposed to disasters is indefensible. The Filipino people have already paid dearly for this practice. 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. The 2027 budget must not repeat that history," the groups said.

With this, the groups recommended to remove every insertion that lacks technical basis; restore the funds taken from foreign-assisted projects, calamity funds, EDSA Busway and health programs; strike special provisions that allow agencies to modify or replace projects; publish every amendment in full; and admit no new items at the Bicameral Conference Committee.

"The bicameral report must reconcile only what each chamber has already approved, contain no blank or lump-sum entries, and be deliberated in fully livestreamed sessions," the groups said.

"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. We ask both chambers to honor these commitments in full," the groups added.

Malacañang earlier defended budget insertions, saying these only become problematic if they go into politicians' pockets.

"Kung ang mga proyekto naman ng isang congressman ay maayos at ang pondong ilalaan dito ay magagamit nang tama, sino ba naman ang dapat na humadlang kung ang pondong ito ay sasapat naman para mapaganda ang isang distrito?" Palace Press Officer Undersecretary Claire Castro said.

(If a congressman's projects are justifiable and the allocated funds for such would be properly used to improve the district, then why should we stand in the way?)

— VDV, GMA News