2027 budget vulnerable to politicking, watchdog warns

MANILA, Philippines — The proposed P7.2-trillion national government budget for 2027 is vulnerable to political manipulation ahead of the 2028 elections, with budget watchdogs warning that billions of pesos in discretionary and localized projects could be used for patronage despite shrinking fiscal space.

Kenneth Abante, coconvener of the People’s Budget Coalition, said the national expenditure program was not “people-centered,” as the Marcos administration claims, but “more centered on politicians.”

“We are worried that the 2027 budget will be politicized for the coming elections,” Abante told the Inquirer in a text message.

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He said about P735 billion in discretionary funds could be exposed to “waste, fraud, abuse and patronage.”

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READ: Making sense of the 2027 national budget

Among the programs flagged as susceptible to political meddling are the Department of Social Welfare and Development’s cash assistance, the Department of Labor and Employment’s program for displaced workers, and the Department of Health’s medical aid for indigent patients.

Also at risk are infrastructure programs such as farm-to-market roads, health facility improvements and flood control projects.“It is striking that hyper-local, patronage-driven projects are prioritized,” said public finance specialist Zy-Za Nadine Suzara.

The Department of Budget and Management submitted the record spending plan to Congress on Aug. 11, a 6-percent or P407-billion increase from this year. The administration has described it as focused on education, health, food and social protection.

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But a Congressional Policy and Budget Research Department document shows substantial cuts in several agencies under these sectors. Education faces a P39.2-billion reduction; health, P33.6 billion; social welfare, P28.7 billion; agriculture, P13.5 billion; and labor, P9 billion.

“It’s hard to characterize the 2027 proposed budget as a people-centered budget when funds for human capital development, livelihood support, agricultural productivity and commuter-centered transport programs suffered deep cuts,” Suzara said.

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P107.4B for flood control

The Department of Public Works and Highways gets P113.1 billion more and the Department of Transportation P160.3 billion more. Debt interest payments rise by P164.3 billion and the National Tax Allotment by P129.3 billion.

The budget also sets aside P107.4 billion for flood control, a major corruption flashpoint.

Suzara said debt servicing, local government shares and government operating costs consume about 84 percent of the budget, leaving only P1.15 trillion in “real funding space.”

Blockchain budgeting

Amid the concerns, Sen. Bam Aquino renewed his call for passage of the Citizen Access and Disclosure of Expenditures for National Accountability (Cadena) Act, or Senate Bill No. 1506, the blockchain the budget bill.

The Senate approved the measure in December 2025, but it remains pending in the House.

The bill would require agencies to upload contracts, project costs, bills of materials and procurement records to a public Digital Budget Platform, making records accessible, tamper-resistant, traceable and verifiable. Officials who fail to disclose required documents or submit fraudulent information could face penalties.

Aquino said Cadena had fallen to 41st from third among the Legislative-Executive Development Advisory Council’s (Ledac)  priorities. Socioeconomic Planning Secretary Arsenio Balisacan said he would raise the issue with Ledac leadership. 

“The best way to address corruption is to have full transparency,” Aquino said, arguing that putting budget records on blockchain could help prevent misuse of public funds.

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He said the measure was especially urgent amid renewed scrutiny of flood control spending and alleged misuse of public funds. /cb