Philippines House approves 2027 budget bill amid scrutiny over spending reallocations

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2027 budget approval controversy

Highlights

House Bill No. 10858, proposing a P7.2-trillion 2027 budget—P407 billion above current—passes with 281 votes, advancing to Senate deliberations targeted for Nov. 9.
Of P116.32 billion in reallocations, P51.78 billion boosts welfare and health assistance, P20.86 billion supports agriculture, P7.26 billion shifts to education, and P1 billion covers new fuel subsidies.
Opposition lawmakers and watchdogs warn that 86.4% or P100.44 billion of reallocations reflect pork barrel-type spending, with critics citing reduced funds for social services and focus on politically sensitive aid.

Budget reallocations and Senate timetable

As reported by BusinessWorld Online, House Bill No. 10858 passes on third and final reading with 281 votes in favor, 13 against and one abstention, advancing the 2027 spending plan to the Senate. The proposed budget stands P407 billion above the current P6.793-trillion program.

The House Budget Amendments Review Subcommittee identifies P116.32 billion in reallocations, including P25.81 billion for the Department of Social Welfare and Development's Assistance to Individuals in Crisis Situations program and P24.97 billion for the Department of Health's Medical Assistance to Indigent and Financially Incapacitated Patients program.

Agriculture receives P20.86 billion in recommended reallocations, with P10 billion earmarked for the Presidential Assistance to Farmers and Fisherfolk program and P4.96 billion for farm-to-market roads. Education-related changes include P1.95 billion for the Department of Education, P3.87 billion for the Commission on Higher Education and P1.44 billion for the Technical Education and Skills Development Authority, while the subcommittee also recommends P1 billion for fuel subsidies that were not included in the Executive's proposal.

Senate President Sherwin T. Gatchalian says the chamber is targeting Nov. 9 to begin plenary budget deliberations. Both chambers are set to reconcile their versions before submitting the final spending plan to President Ferdinand R. Marcos, Jr.

Critics warn of political bias and service gaps

Opposition lawmakers and policy groups say the House version gives too much weight to politically sensitive aid programs and local insertions at the expense of longer-term social needs. Dinagat Islands Rep. Arlene "Kaka" J. Bag-ao votes against the measure, citing weak support for basic services and preparations for El Niño, while also questioning the P100-billion allocation for unprogrammed appropriations.

Party-list Rep. Leila M. de Lima opposes the budget and warns that larger allocations for financial assistance and local projects could entrench political patronage. She also raises concerns over reduced funding for immunization, family planning, classroom construction and disaster response.

Deputy Minority Leader and Party-list Rep. Antonio L. Tinio earlier says 86.4% or P100.44 billion of the identified reallocations goes to what he describes as pork barrel-type spending. He also questions the lack of a separate public report detailing funding cuts, additional allocations and the lawmakers behind the amendments.

Former Finance Undersecretary Cielo D. Magno says the focus on localized projects and financial aid suggests lawmakers are positioning for the 2028 elections. IBON Foundation Executive Director Jose Enrique "Sonny" A. Africa says the House version prioritizes discretionary assistance over long-term development, noting that a P164.3-billion rise in interest payments accounts for about 40% of the total P407-billion increase in the budget.

The People's Budget Coalition and Roundtable for Inclusive Development separately question more than P200 billion in House amendments, including about P84 billion in changes they say remain unexplained. The groups urge senators to restore funding for essential services and call on the President to veto unjustified budget insertions.

In our earlier article on Malaysia’s Budget 2027, we looked at why fast aid distribution and tighter coordination between federal, state, and local authorities are seen as critical to making the spending plan work. We also noted the government’s RM459 billion allocation and its goal of narrowing the fiscal deficit to 3.3% of GDP in 2027, alongside concerns that bureaucracy and compliance burdens could blunt the budget’s impact on businesses.

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