Lump-sum allocations in 2027 budget flagged

PoliticsBusiness & Finance
16 Aug 2026 • 12:22 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

Lump-sum allocations in 2027 budget flagged

SEN. Panfilo Lacson has flagged what he described as “questionable” lump-sum appropriations for infrastructure projects in the proposed P7.2-trillion national budget for 2027, saying he will demand details from the government agency concerned.

Lacson said lump-sum allocations may be justified for unpredictable expenses such as calamity funds, but their use for infrastructure projects warrants closer scrutiny because the proposed allocations do not provide a detailed breakdown of the costs of individual projects.

“We spotted lump-sum appropriations that we don't think should be lump sum,” Lacson said in an interview over radio DZMM, without providing details on how much was involved or which agency was involved.

“Lump-sum appropriations are allowed for calamity funds because we cannot predict when calamities occur. But it becomes questionable if it's for infrastructure projects. That is what we saw, and we will ask for details on the matter,” he added.

Lacson said he may formally raise the issue during the briefing of the Development Budget Coordination Committee (DBCC), tentatively scheduled for Aug. 27.

The senator and his staff have begun reviewing the National Expenditure Program (NEP) after it was transmitted to Congress, with particular attention to allocations and provisions that could weaken safeguards in the budget process.

He said they would also examine special provisions involving unprogrammed appropriations, citing previous national budgets in which the bicameral conference committee inserted provisions that he described as “highly questionable” and potentially unconstitutional.

Among those provisions were measures that would have allowed the executive branch to transfer funds of government-owned and -controlled corporations, including the Philippine Health Insurance Corp., to the National Treasury, as well as provisions involving foreign-assisted projects. Lacson said these were eventually removed from succeeding budgets.

No bicam insertions

Lacson also said he would push to preserve reforms adopted in recent years to make the budget process more transparent, including livestreaming bicameral conference committee proceedings and publishing budget-related documents online.

He noted that Senate Finance Committee chairman Sen. JV Ejercito had assured him that he would not allow new budget insertions at the bicameral conference committee level if these were not included in either the Senate or House versions of the General Appropriations Bill.

“I hope this year that under Sen. JV's chairmanship, he will fulfill his promise not to allow insertions in the bicam level,” Lacson said.

He said such a policy would prevent the introduction of provisions or projects at the final stage of the budget process that had not undergone scrutiny in either chamber.

LGUs need greater say

Lacson renewed his call for greater participation by local governments and local development councils in determining national spending priorities.

He urged the Department of Budget and Management to adjust the timing of its annual budget call so recommendations from local development councils, coursed through the Regional Development Councils, could be properly considered in preparing the NEP.

Lacson said this could reduce the disconnect between the needs of communities and projects eventually included in the national budget.

He cited a fishing community in Bicol where fishermen previously spent nearly a day transporting their catch to market because of the absence of a bridge. After funding was secured for the project, travel time was cut by about 45 minutes.

Lacson said President Ferdinand Marcos Jr.’s Executive Order (EO) 82, issued in January 2025 to strengthen the participation of regional development councils, should be fully implemented.

He noted that local officials continue to approach senators seeking funding for projects that failed to make it into the NEP.

“There is a disconnect. This is what I have been advocating since I entered the Senate 20-plus years ago. Local development councils must be given attention because they know their constituents' needs,” Lacson said.

In Cebu City, Ejercito said the Senate will keep deliberations on the proposed P7.2-trillion national budget for 2027 open and transparent.

Ejercito, the new chairman of the Senate Committee on Finance, said the budget process would add to the workload of senators, who attend the impeachment trial in the morning and plenary sessions in the afternoon.

“To be honest with you, it’s really exhausting. This is the only time I felt this in my entire stay in the Senate,” Ejercito said in an interview with Cebu media on Friday.

Despite the workload, Ejercito said he will prioritize health care, infrastructure and responsible government spending as the Senate reviews the proposed budget.

He said the Finance Committee must balance government spending with accountability, especially as lawmakers examine allocations following the controversy over flood-control projects.

Ejercito said the committee will scrutinize proposed expenditures and ensure that changes to the budget undergo proper review.

He also said the Senate should avoid last-minute amendments and insertions that could escape public scrutiny.

“Not all amendments and insertions are bad, but it should be done in open plenary,” Ejercito said.

Ejercito said the budget process should help restore public confidence in government spending.

"Open bicam, transparency, we will practice transparency.... Also, I will not allow last-minute insertions or amendments anymore during bicam," he said.

He said he would prioritize funding for Universal Health Care, which he identified as one of his campaign commitments when he ran for senator in 2022.

He said he also plans to strengthen funding for PhilHealth so more beneficiaries can receive coverage.

Ejercito identified transportation and major infrastructure projects, including the proposed Mindanao railway system, as priorities.

He said the government should complete ongoing projects, including existing flood-control projects and unfinished sections needed to make existing structures effective, before pursuing new construction.

He said authorities should address gaps in current projects before starting additional ones.

He said he plans to encourage civil society organizations, the academe and other stakeholders to participate in the budget deliberations to provide broader scrutiny of government spending.

The Finance Committee will begin its budget preparations with briefings from the Development Budget Coordination Committee and economic managers scheduled for Aug. 27 and 28.

Newswav Malaysia Best News App

Newswav is an online content aggregator and obtains its content from different online sources. The content in the app do not belong to Newswav nor do they reflect the opinions of Newswav and its staff. Your use of this app indicates your understanding and acceptance of this information.

Newswav Sdn. Bhd. (201701008480 (1222645-M)) 2026 All Rights Reserved