Ejercito Flags ₱206-B Budget Cuts, Warns of Risks to Infrastructure and Healthcare

 

Senate finance committee chairman JV Ejercito has called for closer scrutiny of the House of Representatives' proposed changes to the ₱7.2-trillion national budget for 2027, citing reductions in major infrastructure projects, disaster preparedness and preventive healthcare.

The House's realignments reportedly altered around ₱206 billion from the executive branch's original spending proposal. Ejercito warned that these changes could affect the completion of critical public infrastructure and weaken programs designed to prevent illness and prepare communities for disasters.

Infrastructure funding cuts raise concerns

One of the most significant adjustments was a ₱130-billion reduction in funding for foreign-assisted projects, which rely on financing arrangements with international development partners, including the Japan International Cooperation Agency (JICA) and the Asian Development Bank (ADB).

These allocations support major infrastructure investments, including the Metro Manila Subway, while also accounting for obligations linked to loans used to finance such projects. Ejercito cautioned that prolonged delays could increase the costs and consequences of unfinished infrastructure.

Japan has also sought clarification from the Philippine government over delays affecting JICA-funded projects, adding pressure to address implementation issues.

For Ejercito, completing these investments is essential to ensuring that public spending translates into usable infrastructure and tangible economic benefits.

Disaster preparedness and preventive healthcare face reductions

The proposed budget adjustments also include a ₱9.5-billion cut to the Calamity Fund as the country faces the prospect of a strong El Niño. The reduction has raised questions about the government's capacity to respond to emergencies and climate-related risks.

Within the Department of Health, several preventive and infrastructure programs would also receive less funding:

• ₱4.5 billion less for the Health Facilities Enhancement Program, which supports hospital improvements.
• ₱4 billion less for immunization.
• ₱2 billion less for health promotion initiatives.

In contrast, funding for the Medical Assistance to Indigent and Financially Incapacitated Patients program, or MAIFIP, increased by ₱23.9 billion.

MAIFIP has drawn criticism over concerns that its discretionary nature could expose public medical assistance to political patronage.

Ejercito, a principal author of the Universal Health Care Act, questioned the shift in priorities. He argued that strengthening preventive healthcare should remain central to the country's health strategy rather than relying heavily on financial assistance after people become ill.

The distinction is significant: immunization, health education and stronger hospitals can reduce future health risks, while medical assistance primarily helps patients manage expenses once they need treatment.

Flood control allocations undergo major realignments

Changes to the Department of Public Works and Highways budget present another area for Senate review.

The proposed allocation for right-of-way acquisitions was reduced by ₱2.6 billion, while funding for flood mitigation structures in major river basins was cut by ₱4.6 billion.

At the same time, general construction and maintenance received an additional ₱13 billion, and overall flood mitigation allocations increased by ₱8.04 billion.

The mixed adjustments have prompted questions about whether funding is being directed toward the projects and locations with the greatest need. Ejercito said the Senate would require Regional Development Council approvals and reject lump-sum flood control allocations.

The chamber also intends to prioritize unfinished projects along major river basins and in the country's 10 most flood-prone areas.

Ejercito emphasized the importance of balancing immediate assistance with long-term investment. While subsidies can provide short-term relief, infrastructure projects can support sustained employment and deliver benefits over many years.

Senate begins review of the 2027 spending plan

The Senate finance committee has received the official copy of the House's General Appropriations Bill, which has been distributed to senators and committee vice chairs for examination.

With limited room for additional Senate amendments, the committee is expected to scrutinize the proposed allocations and their implications for national development priorities.

The legislative timetable sets October 23 as the deadline for subcommittees to submit their reports, followed by consultations with civil society organizations and watchdog groups on October 26.

Ejercito plans to sponsor the committee report on November 11, with plenary debates scheduled to begin on November 23. The target is to secure the signing of the 2027 national budget by the second week of December.

The Senate's review will determine how the proposed spending plan balances infrastructure completion, disaster resilience, preventive healthcare and direct social assistance.