Senate, House ponder next move on 2027 budget

MANILA, Philippines — Senators on Thursday sought the Department of Budget and Management’s (DBM) recommendations on how to adjust the proposed P7.2-trillion 2027 national budget following the Supreme Court’s ruling striking down key provisions of previous spending laws.

At the House of Representatives, a dispute erupted over whether the chamber should recall its approved version of the appropriations bill.

During the Senate hearing on the DBM’s proposed budget, Senate President Sherwin Gatchalian pressed Budget Secretary Kim Robert de Leon to identify the changes and safeguards needed to ensure the proposed budget complies with the high court’s decision, which declared unconstitutional some provisions in the 2024, 2025 and 2026 national budgets.

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At the same time, Makabayan bloc lawmakers urged the House to recall its version of the 2027 general appropriations bill, arguing that it contains provisions similar to those invalidated by the court.

But Sen. Joseph Victor “JV” Ejercito, chair of the Senate finance committee, appealed to House leaders to keep the measure intact and address potential problems during bicameral conference deliberations.

“We are already in the thick of the budget process,” Gatchalian said, noting that the chamber was nearing the end of committee-level deliberations and preparing to consolidate agency budgets for plenary debates.

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“What are the DBM’s recommendations in relation to the Supreme Court ruling so that we can fine-tune and adjust the proposed budget accordingly? What should we watch out for, and what aspects of the 2027 budget process do we need to examine and adjust?” he asked.

De Leon replied that the proposed 2027 budget no longer contained the Strengthening Assistance for Government Infrastructure and Social Programs (Sagip), which the high court had declared unconstitutional, and included fewer items under unprogrammed appropriations.

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He also said the DBM was prepared to provide Congress with detailed breakdowns of allocations for foreign-assisted projects and welcomed additional safeguards governing the release of unprogrammed funds.

Sen. Imee Marcos also sought clarification on the scope of the ruling, asking whether the court had invalidated entire General Appropriations Acts or only specific unprogrammed appropriations and congressional increases identified in its decision.

“Are you interpreting narrowly, moderately, or liberally?” she asked.

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De Leon said the DBM executive committee was reviewing the ruling’s legal, fiscal, technical and operational implications. The department was also coordinating with the Office of the Solicitor General and would seek clarification from the Supreme Court regarding the 2025 budget, particularly the implications for unreleased and unpaid allocations.

Clamor to recall budget bill

In the House, ACT Teachers party list Rep. Antonio Tinio said the SC ruling vindicated the Makabayan bloc’s opposition to the P7.2-trillion budget bill, which the chamber approved on third and final reading on Oct. 12.

“Our call is directly for the House, for them to recall the approved budget because many provisions declared by the Supreme Court as unconstitutional can be found in the proposed budget,” Tinio said in an online media briefing.

“The House must fix its own mess in the 2027 proposed budget,” he added in Filipino.

Tinio cited congressional insertions, prohibited lump-sum appropriations and the transfer of funds to unprogrammed appropriations as provisions that warranted scrutiny.

The high court ruled that Congress committed grave abuse of discretion when it increased appropriations beyond the amounts recommended by the President.

It struck down a P449.5-billion increase in unprogrammed appropriations under the 2024 budget, a P17.992-billion increase in the Special Road Fund under the 2025 budget, and Special Provisions 1(a) and (b) governing unprogrammed appropriations in the 2026 budget.

The court also barred the release of the affected 2026 standby funds.

Tinio and other Makabayan lawmakers were among 13 House members who voted against the 2027 budget bill. They have also demanded the release of a complete report detailing amendments to the measure, including the realignment of P116.32 billion recommended by a House subcommittee.

The House leadership, however, has not discussed recalling the bill, according to Senior Deputy Speaker Ferdinand Hernandez.

“[We] haven’t discussed any of this with the appropriations chair,” Hernandez said, referring to Rep. Mikaela Angela Suansing.

He said House leaders would take their cue from the Office of the Solicitor General, which plans to seek reconsideration of the Supreme Court ruling.

“The SC decision is just a day old and subject to reconsideration,” Hernandez said. “We will take our lead from OSG and let constitutional process take its course.”

“Any reactionary measures at this time would be premature,” he added.

Solicitor General Darlene Berberabe has advised the executive branch to temporarily freeze the release of 2026 unprogrammed funds while awaiting the court’s final decision.

Ejercito warns of delays

Ejercito urged the House not to recall its version of the 2027 budget, warning that restarting the process could jeopardize the government’s goal of passing the spending measure before the end of the year.

“I’m appealing because I’m worried about that. If that’s done… most likely we won’t pass, we won’t be able to pass the budget by year-end,” he said in an interview at the Senate.

Instead, he proposed resolving differences between the House and Senate versions during the bicameral conference committee, where lawmakers reconcile competing provisions before submitting the final measure to the President.

“I appeal, I hope we can fix this on bicam just in case… We are transparent and everything will be televised,” Ejercito said.

He cited the upcoming continuation of Vice President Sara Duterte’s impeachment trial on Nov. 9 and the suspension of congressional work from Nov. 16 to 18 for the 49th Association of Southeast Asian Nations Summit and related meetings as potential obstacles to timely budget approval.

The House approved the P7.2-trillion bill by a vote of 282 in favor, 13 against and one abstention.

The measure has also faced criticism from budget watchdogs over transparency and alleged patronage-driven allocations. The People’s Budget Coalition and the Roundtable for Inclusive Development estimated that legislative amendments could reach P198.9 billion, exceeding the P116.32-billion realignment reported by the House subcommittee.

The groups flagged allocations for cash assistance, health aid, agriculture support, jobs programs and infrastructure, and called for the publication of complete, publicly accessible details of budget amendments.

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The 2027 spending measure is now under Senate review, after which both chambers are expected to reconcile their versions before the bill is sent to President Marcos for enactment. —WITH REPORTS FROM KEITH CLORES AND KENNETH CHRISTIANE BASILIO