‘House realigned P206 billion in 2027 national budget’

Ejercito expressed concern over the P130-billion reduction for foreign-assisted projects (FAP), which are funded through loan agreements with partners such as the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB).

Philstar.com / File

MANILA, Philippines —  Senate finance committee chairman JV Ejercito has raised concerns over the House of Representatives’ realignments in the proposed P7.2-trillion national budget for 2027.

Ejercito noted that an estimated P206 billion was altered from the executive branch’s original spending plan and slashed funds for big-ticket infrastructure and preventive health care.

Ejercito expressed concern over the P130-billion reduction for foreign-assisted projects (FAP), which are funded through loan agreements with partners such as the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB).

The allocation for FAPs is supposed to pay off the multibillion-peso loans from JICA and ADB that were used for big-ticket infrastructure projects including the Metro Manila Subway.

“There was noticeable slashing of funds for major programs, especially foreign-assisted programs,” Ejercito said.

“The more we delay, the bigger the problem gets. We have to finish all of these major infra so they can be put to use,” he added.

The Japanese government has sought clarifications from the Philippine government regarding delays in JICA-funded projects.

Ejercito also noted a P9.5-billion cut from the Calamity Fund amid looming threats from a strong El Niño, as well as an apparent shift toward short-term social assistance at the expense of preventive health care programs.

Under the Department of Health’s budget, the Health Facilities Enhancement Program (HFEP) meant to improve hospitals was slashed by P4.5 billion, the immunization program lost P4 billion and health promotion programs were cut by P2 billion.

In contrast, allocations for the Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP) surged by P23.9 billion.

MAIFIP is a controversial health care program, which has been criticized as a “discretionary fund” vulnerable to political patronage.

“It’s a puzzle to me because one of the key factors of the UHC (Universal Health Care) is to strengthen the preventive side. And they slashed it. What are we doing? We remove immunization and health promotion then when people get sick we provide medical assistance?” said Ejercito, a principal author of the UHC Act.

Flood control

In the Department of Public Works and Highways, right-of-way acquisitions were reduced by P2.6 billion while flood mitigation structures within major river basins saw a P4.6-billion cut.

Meanwhile, general construction and maintenance received an additional P13 billion and overall flood mitigation items were increased by P8.04 billion.

Ejercito cautioned against over-relying on unconditional subsidies, stressing that long-term infrastructure investment generates sustained employment.

“Budget process is a balancing act,” he said.

Ejercito announced that the finance committee received the official copy of the House General Appropriations Bill on Tuesday and copies were distributed to senators and committee vice chairs to begin scrutiny.

With only limited fiscal space left for Senate institutional amendments, Ejercito said the Senate would demand Regional Development Council approvals and disallow lump-sum allocations for flood control, prioritizing only uncompleted projects along major river basins and the top 10 flood-prone areas.

The finance committee set an Oct. 23 deadline for subcommittees to submit their reports, with civil society organizations and watchdogs scheduled for consultations on Oct. 26.

Ejercito plans to sponsor the committee report on Nov. 11, open plenary debates on Nov. 23 and targets the signing of the 2027 national budget by the second week of December.