The Department of Social Welfare and Development and the Department of Labor and Employment face sharp funding cuts under the proposed P6.793-trillion national budget for 2027.

During budget deliberations at the House of Representatives on Tuesday, 8 September, the DSWD said its proposed budget was reduced to P241.2 billion from the P269.9 billion it received under the 2026 General Appropriations Act.

The reduction also affected its attached agencies, including the National Council on Disability Affairs, Council for the Welfare of Children and Juvenile Justice and Welfare Council.

The Presidential Commission for the Urban Poor and the National Anti-Poverty Commission, which are under DSWD supervision, also received lower proposed allocations.

The agencies were allocated funds for personnel services and maintenance and other operating expenses but received no proposed capital outlays despite having such allocations in the 2026 budget.

Social Welfare Secretary Rex Gatchalian raised concern over the reduction in funding for the Assistance to Individuals in Crisis Situations program.

The proposed AICS budget was cut to P33.3 billion for 2027 from P63.9 billion this year, a decrease of nearly 48 percent.

Gatchalian said the reduction came as the DSWD was targeting an increase in the number of beneficiaries next year.

“Given the nature of the program, the NEP amount may not be enough to achieve the same level of performance for the past two years,” Gatchalian said.

The government used AICS during the recent oil crisis to distribute P5,000 in assistance to qualified workers in the transportation sector.

DOLE budget down 23 percent

The proposed DOLE budget was reduced by nearly 23 percent to P47.06 billion from its P61.17-billion allocation in 2026.

The amount was also P23.37 billion lower than the P70.43 billion the department had proposed to the Department of Budget and Management.

The DOLE central office received a proposed allocation of P9.03 billion, while several attached agencies also faced reductions.

These included the National Conciliation and Mediation Board, National Labor Relations Commission and Technical Education and Skills Development Authority.

TESDA received the largest percentage reduction among the agencies, with its proposed budget decreasing by 19.82 percent to P20.89 billion from P26.06 billion.

Most of the reduction in DOLE’s funding came from its maintenance and other operating expenses and capital outlays, which were cut by P12.82 billion and P321 million, respectively.