Why the budget is under intense scrutiny

“Madugo na talaga” (It’s really bloody) is how the budget mill is described when talk turns to the massive discretionary funds that have breached P625 billion, the largest in the 80 years — 13 administrations — of Philippine independence.

When budget proposals reach unprecedented hundreds of billions of pesos, it triggers intense debates over executive privilege, legislative overreach, and the true definition of discretionary spending in modern times.

The most questioned components of the P7.2-trillion 2027 national budget are the massive House realignments, the cuts to basic services, and the ballooning discretionary allocations that watchdogs warn will be the “pork barrel” for the 2028 elections.

Following the House of Representatives’ approval of House Bill 10858, civil society groups like the People’s Budget Coalition flagged several highly controversial components.

1. The P206-billion

House realignments

Senate Finance Committee Chair Senator Joseph Victor “JV” Ejercito and Sen. Panfilo Lacson sounded the alarm over the massive P206-billion realignment introduced in the House version of the budget. Critics noted that these changes were finalized during exclusive executive sessions that lacked public transparency, shifting funds away from institutional programs into local allocations controlled by lawmakers.

2. Diversion of foreign-assisted projects

The House version implemented a steep P130-billion cut to Foreign-Assisted Projects. The cuts targeted critical, loan-backed state infrastructure, including the Metro Manila Subway, the North-South Commuter Railway, and major river basin flood mitigation systems. Senators warned that altering these allocations breaches agreements with international development partners and exposes the government to financial penalties and commitment fees.

3. Reduction in education and preventive healthcare

While the overall budget claims to be “people-centered,” critics highlighted drastic misprioritization:

a) Education cuts: The education sector faces deep funding cuts (with some watchdogs flagging a P392-billion reduction), including a P2.95-billion drop for the University of the Philippines system and the UP Philippine General Hospital.

b) Healthcare shift: The House cut P4.45 billion from the Department of Health’s Health Facilities Enhancement Program. Opposition lawmakers criticized the shift because it slashes preventive healthcare in favor of curative programs, running counter to the Universal Care Law.

4. ‘Hard Pork’ and local infrastructure splurges

Budget watchdogs identified over P485 billion in “hard pork” --- specifically local infrastructure line items built into the Department of Public Works and Highways budget. Funds were systematically diverted to “Congress and special support programs,” such as local multi-purpose halls and access roads. Critics argue these projects frequently lack proper engineering feasibility studies and variable work plans.

5. Soft pork and ‘ayuda’ inflation

Opposition lawmakers flagged roughly P140 billion in soft pork “distributed across social Assistance to Individuals in Crisis Situation. DoLE’s TUPAD, and the DoH’s Medical Assistance for Indigent Patients. While beneficial on the surface, lawmakers like Leila de Lima and Edgar Erice argued that inflating these funds right before an election year makes them highly vulnerable to political patronage and vote buying.

Current status

The executive branch has indicated that while it will not force a reenacted budget, Malacañang is prepared to freeze and categorize questionable line items as “for later release” unless their disbursement comes with comprehensive documentation and project viability studies.

The budget is currently undergoing intense plenary scrutiny in the Senate.