BARSc insertions cut 2027 fiscal space in half – budget watchdogs

The changes of the Budget Amendments and Review Subcommittee (BARSc) on the allocations in the P7.2 trillion proposed national budget had cut the fiscal space of the country with nearly P541.4 billion being consumed by “pork allocations.”

A thorough review conducted by various budget watchdogs identified that the amendments that were created by BARSc leaned on increasing funding for projects that were prone to patronage such as subsidy programs and “politicized” infrastructure programs.

A report from People’s Budget Coalition (PBC) adviser AJ Montesa revealed that the actual amendments of the House special panel through their livestream were vastly understated.

Contrary to the P116 billion amount that BARSc presented, Montesa noted that there was P199 billion that were shifted without a clear indication on where the budget for said amendments were sourced.

Of the government agencies that saw drastic changes, the Department of Public Works and Highways which saw an P11.5 billion increase through the special panel.

Montesa, however, said that the bumps came after P130 billion was taken from funding for foreign-assisted projects, another P9.5 billion was taken from calamity funds, and P4.9 billion was sourced from programs of the Department of Health (DOH).

He likewise pointed out that there were some promised changes in the panel’s livestream that were not followed through, such as the promised funding for classroom construction and health facilities.

As mentioned, Montesa said that a bulk of the funds went to “ayuda” initiatives such as the Department of Social Welfare and Development’s (DSWD) Assistance to Individuals in Crisis Situation program which was allotted P24.8 billion.

A similar amount of P24 billion was also earmarked for the Medical Assistance to Indigent and Financially Incapacitated Patients (MAIFIP) initiative of the DOH.

“In all of these projects, politicians have parked allocations that were not shown to the public,” Montesa stated.

The DPWH, meanwhile, had received lump sums for the creation of multi-purpose buildings and bypass roads at P42.7 billion and P29.2 billion, respectively.

He also highlighted that an amount of P53.7 billion was provided to the 1st District Engineering Office of Ilocos Norte–an area that is represented by congressman Sandro Marcos.

Montes would acknowledge, however, that there were bumps to budgets that had supported the public through the height of the fuel crisis and other health initiatives–amounts he said were small in comparison to the pork additions.

Amendments, pork consumed fiscal space

Financial specialist Zy-za Nadine Suzara, for her part, pointed out that the changes of the BARSc contributed to the “tight” fiscal space of the country in the coming year.

The proposed 2027 budget saw an increase of just P407 billion from the previous year’s budget.

Suzara stated that the additions to the coming year were completely consumed through pork allocations which she said had reached P541.4 billion.

Referencing the findings of Montesa, the specialist noted that “hard pork” was still the largest contributing factor in the dwarfed fiscal space.

Suzara mentioned that aside from the DPWH, the Department of Agriculture had also made up the allocations as it was earmarked P339.6 billion.

Summarizing her findings, Suzara said that pork had consumed 47.1 percent of the P1.15 trillion fiscal space of the government.

“They shouldn’t even try and tell us the 2028 elections is not the priority here. Where was the mentioned “inclusive” and “people-centered” [budget]?” she wrote.

The proposed House General Appropriations Bill is set for third reading on Monday, 12 October. After approval, it would be transmitted to the Senate for further deliberations.