Circus over, pain begins

Circus over, pain begins | Daily Tribune

Misusing the budget for the administration’s futile yet costly campaign to dominate the recent elections will come at a significant cost to the Filipino people.

Filipinos were witness to the massive diversion of funds from legitimate programs to the patronage-driven Ayuda sa Kapos ang Kita Program (AKAP), Assistance to Individuals in Crisis Situation (AICS), and the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD).

As a consequence, legitimate services such as those rendered by the Philippine Health Insurance Corp. (PhilHealth) will have a more challenging time expanding after it was denied subsidies in the 2025 General Appropriations Act, the handiwork of the bicameral conference committee.

Key infrastructure, such as the subway project, which was affected by the reallocations, will be delayed.

The computerization program, essential for the education of the youth, is on hold and the Pantawid Pamilyang Pilipino Program (4Ps) beneficiaries will receive less with the P50 billion slashed from the fund.

The military modernization program was compromised due to significant budget cuts.

The funds diversion overdrive will have a significant impact on development targets, according to an economist.

Economists described this year’s budget as the worst ever, as it was crafted solely to favor political ends.

Worse, the Commission on Elections (Comelec) was complicit in the waylaying of the budget, as it exempted the AKAP and 11 other dole programs, totaling P32.27 billion, from the election spending ban.

The budget allocated P26 billion for AKAP — with P21 billion designated for the House of Representatives and P5 billion for the Senate — proving that it was a patronage program.

This funding was placed under “conditional implementation” in the budget veto, requiring stricter guidelines to prevent misuse, developed by the Department of Social Welfare and Development, the Department of Labor and Employment, and the National Economic and Development Authority.

However, these guidelines did not stop the fund from being misused to promote the administration candidates. The expenditures increased the fiscal burden without generating corresponding revenue or economic returns.

The 2025 national budget included P531.665 billion in unprogrammed funds, a significant increase from the P158.665 billion in the National Expenditure Program (NEP) of the Executive.

These funds, if accessed without sufficient revenue, directly widen the deficit.

Based on government figures, this year’s budget of P6.326 trillion will be supported by only P4.64 trillion in projected revenues, implying a daily revenue shortfall of P0.662 billion.

Misuse of funds, such as AKAP, exacerbates the gap, as resources are diverted from productive investments, including infrastructure and health, to achieve short-term political gains.

In the first trimester, the budget deficit reached P411.5 billion, a record high, resulting from a 2.82 percent year-on-year decline in revenue.

The redirection of funds from health and education to political programs and pork barrel projects limits investments in human capital and infrastructure.

The desperate attempt to court voters will ultimately punish Filipinos, as they will have to bear the burden of the debts incurred to plug the budget shortfall.

The 2025 budget’s reliance on borrowing to finance 26.8 percent of spending not covered by revenue collections increases debt servicing costs.

The fiscal deficit is projected to reach P1.765 trillion for the year.

The bleeding in government finances will further limit access to healthcare and education for the poor, worsening their already dire condition in exchange for the periodic spectacle that elections have become.