Budget coalition flags debt, social service cuts in 2027 spending plan

The People’s Budget Coalition has raised concerns over the proposed 2027 national budget, flagging the growing debt burden, reduced allocations for key social services and infrastructure spending it said may not sufficiently address the needs of ordinary Filipinos.

In an interview with DZMM on Sunday, 23 August, coalition co-convenor AJ Montesa said that while the proposed national budget increased by about 6 percent, spending for social services would receive a smaller share.

Montesa said around 15 percent of the budget would go toward debt payments as the country’s outstanding obligations and corresponding interest costs continue to rise.

He also cited the country’s rising debt-to-gross domestic product ratio as a concern, saying it had increased from around 51 percent before the Marcos administration to about 66 percent.

According to Montesa, allocations affecting education, health and agriculture should be scrutinized as Congress deliberates on the spending plan.

He also raised concerns over infrastructure spending, particularly projects he described as favoring private vehicle owners rather than commuters.

Montesa called for closer scrutiny of the Department of Public Works and Highways’ infrastructure programs, including flood control projects, citing Bulacan as an area where substantial spending has yet to translate into improvements visible to communities.

The coalition also flagged the Local Government Support Fund, saying clearer breakdowns are needed to ensure transparency and accountability in the use of public funds.

Montesa warned that some allocations could potentially be used for politically advantageous programs ahead of the 2028 elections, including TUPAD, and raised concerns about possible additional allocations during congressional deliberations.

He also called for tighter scrutiny of unprogrammed appropriations to prevent questionable or unnecessary spending.