P735.56 Billion in Marcos’ 2027 Budget Flagged Over Political Intervention Risks

 

A coalition of civil society organizations has identified P735.56 billion in President Ferdinand Marcos Jr.’s proposed 2027 national budget as vulnerable to political intervention, discretionary spending and potential budget insertions, putting greater scrutiny on the spending plan ahead of the 2028 elections.

The People’s Budget Coalition (PBC) classified the flagged amount into three categories: P140.07 billion in soft pork, P483.51 billion in hard pork and P111.98 billion in what it calls shadow pork.

The coalition’s assessment does not mean the programs themselves are inherently improper. Rather, it points to areas where weak safeguards, discretionary allocation and insufficient transparency could create opportunities for political influence.

Infrastructure accounts for the largest risk

Infrastructure represents the largest portion of the coalition’s concerns, with P483.51 billion categorized as hard pork.

The Department of Public Works and Highways is seeking nearly P650 billion for 2027, including funding for asset preservation and flood management. Other major infrastructure allocations include P16 billion for farm-to-market roads, P46.36 billion for the National Irrigation Administration and P14.54 billion for the Department of Health’s Health Facilities Enhancement Program.

The PBC argues that the scale of infrastructure spending makes rigorous project selection and monitoring essential. It has particularly raised concerns about flood-control projects, citing previous instances where projects were allegedly directed toward legislative districts based on political relationships rather than documented risks and established development plans.

The coalition is calling for stronger project-level documentation, including geotagging, so citizens can determine where projects are located and monitor whether they are actually implemented.

Social assistance remains a major election concern

Another P140.07 billion has been identified as soft pork, covering social assistance and other programs that the coalition considers susceptible to political manipulation.

Public finance analyst Zy-Za Suzara noted that several assistance programs received substantially smaller allocations than in 2026. Despite those reductions, she argued that the continued size of these programs warrants close scrutiny because of their potential political visibility.

The proposed allocation for the Department of Social Welfare and Development’s Assistance to Individuals in Crisis Situation is P33.28 billion, approximately 48 percent below its P63.9-billion allocation under the 2026 General Appropriations Act.

The Department of Labor and Employment’s Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers program is proposed at P14.25 billion, down 36.5 percent from P22.44 billion.

The Department of Health’s Medical Assistance to Indigent and Financially Incapacitated Patients program is slated for P24.24 billion, a 53 percent decline from P51.65 billion in 2026.

Meanwhile, the Commission on Higher Education’s Tulong Dunong program and the Presidential Assistance to Farmers and Fisherfolk program received no funding in the proposed 2027 budget, despite receiving P2.73 billion and P10 billion, respectively, in 2026.

The PBC maintains that assistance should be distributed according to transparent rules, verified needs and reliable data rather than becoming a mechanism for political patronage.

LGSF draws renewed scrutiny

The Local Government Support Fund is another area attracting attention.

The proposed P58.53 billion allocation is part of the P109.13 billion earmarked for local government units in 2027. The LGSF is designed to finance priority development initiatives and urgent local requirements across provinces, cities, municipalities and barangays.

Senate President and finance committee chair Sherwin Gatchalian has questioned the fund’s rapid expansion. He noted that the LGSF historically ranged between roughly P10 billion and P15 billion before increasing dramatically in recent years.

Department of Budget and Management acting Secretary Kim Robert de Leon said the larger allocation is intended primarily for nationwide rice distribution and infrastructure projects designed to support local economic activity.

Gatchalian, however, has sought concrete evidence demonstrating that the expanded fund is producing measurable improvements in poverty reduction and countryside development.

The issue illustrates why lump-sum appropriations require particular attention. A broad allocation can provide government with flexibility, but without sufficiently detailed criteria and public reporting, it becomes harder to determine how money is ultimately distributed.

Unprogrammed funds raise transparency questions

The PBC also identified P111.98 billion in unprogrammed appropriations as shadow pork.

These funds are generally designed as standby appropriations that may only be released when specific conditions are met. Among the largest proposed amounts are P57 billion for restoring the funds of the Philippine Deposit Insurance Corp. and P42.55 billion for foreign-assisted projects.

The coalition considers the growing scale of unprogrammed appropriations a recurring concern, particularly since 2022. It argues that expanding this category can weaken the clarity of the national spending plan and create additional opportunities for questionable insertions.

Confidential and intelligence funds face tighter scrutiny

Confidential and intelligence allocations have also come under heightened examination.

The DBM said it rejected requests from civilian agencies that lacked legitimate surveillance or intelligence mandates. For 2027, the proposed allocation totals P10.7 billion, consisting of P4.3 billion for confidential funds and P6.4 billion for intelligence funds.

During a Senate Development Budget Coordination Committee hearing, Gatchalian sought confirmation that the proposed allocations had undergone strict executive review.

De Leon said the DBM had filtered out requests from offices that did not meet the requirements, limiting such funding to agencies with legitimate law enforcement and intelligence functions.

The issue has gained additional significance amid an ongoing impeachment trial that has brought renewed attention to the potential misuse of confidential funds.

Lacson questions whether the budget is truly execution-ready

Sen. Panfilo Lacson separately challenged the characterization of the proposed P7.2-trillion national budget as execution-ready.

His concern centered on lump-sum appropriations within the DPWH budget for evacuation centers. Lacson identified P180 million for each of the country’s 18 regions, resulting in a combined P3.24 billion allocation.

He questioned how such funding could be considered fully execution-ready when the proposal did not specify the precise locations of the planned facilities.

De Leon responded that agencies would still be required to provide the necessary details to the DBM, while the Office of Civil Defense had yet to complete its list of proposed evacuation centers.

Lacson also urged the government to address persistently underperforming government-owned and controlled corporations, suggesting that agencies and state firms that consistently fail to deliver should either be abolished or lose their funding.

Finance Secretary Frederick Go said the Governance Commission for GOCCs is currently assessing 21 government corporations for possible closure, winding down or absorption by other state-owned entities.

Budget scrutiny expected to intensify

The PBC said the P735.56 billion already identified represents a starting point rather than a final assessment of political risk.

The coalition expects the amount could increase during congressional deliberations, citing previous budget cycles in which flagged allocations expanded before the final General Appropriations Act was enacted.

It is therefore urging lawmakers and budget officials to make civil society participation more meaningful throughout the process, from the National Expenditure Program through congressional review and final enactment.

The coalition has also pointed to Gatchalian’s willingness to consider civil society feedback and his push for stronger documentation of infrastructure amendments as an example of how greater transparency can strengthen budget oversight.

With the 2027 budget carrying substantial allocations for infrastructure, social assistance, local government support and standby appropriations, the central challenge is not simply how much the government intends to spend. It is whether every peso can be traced to a clearly defined need, supported by evidence and protected from political discretion.

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