House budget slashes rail projects

Senator JV Ejercito on Wednesday flagged the sweeping changes made in the House-approved 2027 budget, saying it deviated from the National Expenditure Program (NEP), with massive cuts to flagship railway projects and an additional P8.04 billion allocated for flood control.

“We confirm that there are significant changes from the NEP in the House version of the GAB,” Ejercito said in a briefing. “We will not take this [at] face value.”

Ejercito chairs the Senate Committee on Finance, the counterpart to the House appropriations panel, which is tasked with scrutinizing the proposed national budget and the House-approved version of the General Appropriations Bill (GAB).

The Senate panel received the House’s GAB on Tuesday and immediately noticed sharp cuts of P130 billion in the outlay for foreign-assisted projects and of P40.4 billion in the Department of Transportation (DoTr) budget.

The slash affected the funding for big-ticket projects — the Metro Manila Subway Project (MMSP) and the North-South Commuter Railway (NSCR) — which took hits of P19.7 billion and P15 billion, respectively.

Ejercito said delays in project completions caused by the budget cuts would result in financial repercussions for the government, including having to pay billions in loan interest, commitment fees, and penalties, while slowing economic growth.

“This was brought to the attention of the President when he went to Japan and this was pointed out by Japanese officials who came here seven times. And now, [the funding] has been cut again,” Ejercito said. “This is our obligation and the more we delay, the more expensive it will be for us.”

The MMSP and the NSCR, also known as the expanded Philippine National Railways, daim to meet the growing demand for public transport and alleviate traffic congestion in Metro Manila.

Their initial cost estimates stood at P488.5 billion and P873.6 billion, respectively, bringing their combined price tag to P1.36 trillion.

Japan shoulders the bulk of the project’s cost through a loan, while the Philippines pays the remaining cost.

Opposition House Rep. Edgar Erice had claimed that congressional insertions made by lawmakers to the budget displaced funds for more than 15 big-ticket projects, including the MMSP and the NSCR, which are flagship projects of President Ferdinand Marcos Jr.

The MMSP and NSCR were originally slated for completion before Marcos leaves office in 2028. But due to the budget insertions, the MMSP’s completion date was moved to 2032, while the NSCR’s full operation date was extended until 2033, although the DoTr said partial operations, covering the Valenzuela-to-Malolos segment, are expected in December 2027.

Ejercito pointed out that these delays drive up costs, hamper long-term economic growth and jobs creation, and tarnish the country’s image.

Flood control to blame?

Beyond big-ticket projects, the House also made several striking budgetary changes, according to Ejercito.

These include a P9.5-billion cut to the calamity fund despite the threat of El Niño, a P4.4-billion cut in the Health Facilities Enhancement Program, while immunization funding was reduced by P4 billion and health promotion by P2 billion.

Meanwhile, funding for the Medical Assistance Program, which helps indigent patients with medical expenses, was increased to P23.9 billion.

Ejercito called this “puzzling,” noting that it runs counter to the Universal Health Care Law, which aims to strengthen preventive care to avoid higher curative costs when patients are hospitalized.

The House boosted funding for a new line item, the Presidential Assistance to Farmers and Fisherfolk, with P10 billion under the Department of Agriculture.

As for flood control projects, Ejercito flagged a P8.04-billion increase for general flood mitigation structures, but those within major river basins were cut by P4.6 billion.

The Department of Public Works and Highways’ proposed budget for next year is pegged at P643.95 billion, approximately 20 percent higher than this year’s. Of the amount, 16 percent, or P107.4 billion, is earmarked for flood control projects.

Ejercito suggested the Senate will likely not compromise with the House over the increase in flood control projects, since the initial recommendation was to halt new anti-flood projects, prioritize the incomplete ones, and focus only on the most flood-prone areas.

The Senate, he said, will closely study which projects to fund, where they will be implemented, and why allocations were changed significantly.

Overall, Ejercito said the House adjusted P206 billion from the P7.2 trillion NEP. He lamented that the extensive changes to the budget leave the Senate with little room to introduce its own institutional amendments.

The chair reiterated that the Senate would not rubber-stamp the House-approved GAB, vowing to scrutinize the budget line by line to prevent irregularities and duplicate entries.

The committee aims to finalize subcommittee reports by 23 October, with plenary debates set for November. The Senate hopes to pass the budget by the second week of December before transmitting it to Malacañang for President Marcos’s signature.