P37.49-B ‘President’s pork’ fuels pre-election concerns

Senator Imee Marcos has questioned the sharp increase in financial assistance to local government units (LGUs) in the 2027 national budget, warning that the multibillion-peso allocation could advance partisan interests ahead of the 2028 national elections.

The lump-sum appropriation under the Local Government Support Fund (LGSF) is managed by the Department of Budget and Management (DBM) in coordination with the Department of the Interior and Local Government.

The allocation dubbed FALGU (Financial Assistance to LGUs) was initially set at P5 billion for 2026 under the National Expenditure Program (NEP).

The House of Representatives later increased it to P41.85 billion in its version of the General Appropriations Bill, before it was reduced to P37.49 billion in the enacted budget.

Opposition lawmakers and budget watchdogs have described the FALGU as “soft pork” because of its discretionary nature, drawing comparisons to the former pork barrel system declared unconstitutional by the Supreme Court.

ACT Teachers Partylist Rep. Antonio Tinio called it the “President’s pork,” arguing that executive control over the funds could give the administration leverage over LGUs ahead of the 2028 elections.

Low utilization

Senator Marcos questioned why the DBM retained the P37.49-billion allocation in the proposed 2027 budget instead of reverting to the original P5 billion, as congressional increases are usually removed in the succeeding year.

“So what justifies this humongous increase in the allocation from 2026 to 2027, which was only P5 billion before and now has ballooned by P37.493 billion?” she asked during a Senate budget hearing.

She also cited the allocation’s low utilization. As of August, only P1.60 billion had been obligated and P145.97 million disbursed, she said.

“Isn’t that what you always criticize us for — that the agencies that do not implement cannot increase their budget?” Marcos asked.

In response, DBM Acting Secretary Kim Robert de Leon said the agency retained the P37.49 billion in response to requests from LGUs.

He also cited President Ferdinand Marcos Jr.’s “Bawat Bayan Makikinabang” program, which distributes 10 kilos of rice twice every two months to indigent and vulnerable households through local governments.

De Leon said almost half of the FALGU allocation went to the rice distribution program and that the DBM intended to continue funding it in 2027.

Aid caps

Senator Marcos rejected the explanation, arguing that the DBM generally does not grant requests for additional funding because of limited fiscal space.

She also questioned why FALGU-funded programs for rice, medical, burial, transport, food, and educational assistance duplicated services already provided by other government agencies, particularly the Department of Health and the Department of Social Welfare and Development.

“So how do you avoid the consideration that the huge increase in LGSF-FALGU, and all the seven programs under it, are not really aid in preparation for the 2028 elections? Because that’s what’s clear to everyone,” Marcos said.

De Leon said the DBM follows guidelines governing FALGU spending, including caps on assistance to indigent residents.

He acknowledged, however, that the agency could not independently verify whether cases of “double-dipping” had occurred.

He said the DBM would abide by Congress’ decision on whether the allocation should be lodged under other agencies.