Same old story

BBM is facing a big test on how much he has learned from this year’s big public outcry against the large-scale looting of the national budget by his allies in Congress. Or will it be the same old story?

Well, it looks like nobody learned anything. Even before the budget is submitted to Congress, the Department of Budget and Management, through the Development Budget Coordination Committee, has already thrown in the towel.

The unprogrammed appropriations (or contingency funds), in the draft FY 2026 National Expenditures Program or NEP is about P245 billion.

That may be a reduction from this year’s P363 billion allocation. But important national interest projects remain unprogrammed.

They will surely try to sell this token decline to mean tighter prioritization and less discretionary wiggle room. But that’s not the reality. BBM’s budget department surrendered fiscal space for pork funds in their budget draft.

The budget proposal already relegated vital national priority projects to unprogrammed appropriations or standby funds.

The list includes: counterpart funds for foreign-assisted projects: P97.3 billion (40 percent); government infrastructure and social programs: P78.4 billion (32 percent); AFP modernization: P40 billion; Bangko Sentral equity infusion: P10 billion; Marawi Siege Victims Compensation: P2 billion plus a few more items.

So, nothing has changed. Last year, we saw how they shifted into unprogrammed funds supporting AFP modernization, foreign-assisted mega-projects and social/infrastructure programs. Tell me… what could be more important than these items if we are talking of the national interest?

If these important items remain unprogrammed, it means little or no funds will flow toward adequate public transport, a capable and well-equipped armed forces and essential health services for those in need.

There’s a real risk that our counterpart funding for major foreign-assisted rail projects could be in jeopardy.

That happened this year when P112 billion of funds allocated to support foreign-assisted projects (including MRT Line 4, North-South Commuter Railway, Metro Manila Subway etc.) were moved to unprogrammed status.

Last year, only P10.7 billion were released of the P51.6 billion earmarked for counterpart support. The remaining P40.8 billion was left in unprogrammed funds.

NEDA estimates show a P64 billion shortfall in counterpart funds needed for ODA projects in 2026. Given our tight fiscal space, that effectively means we must wait longer for those vital projects to benefit us.

In practical terms, funding delays mean: Without counterpart releases, multilateral lenders won’t disburse ODA loan proceeds, which could hold up procurement, construction and right-of-way acquisition for projects like the North-South Commuter Railway or Metro Manila Subway.

Delays also mean increased costs: If the government delays counterpart funding, lenders may impose commitment fees or penalties. We have already experienced an instance when some P2.2 billion was paid in fees/penalties due to ODA project delays.

Project costs are increased due to delays. Contractor mobilization costs are paid for by the taxpayers.

For example, in the Metro Manila Subway Project, JICA is financing P370.7 billion; the government counterpart is P117.7 billion — however, much of this is pending in unprogrammed funds.

Last week, Sen. Panfilo “Ping” Lacson claimed his study of this year’s budget revealed the “pork barrel” allocations of some lawmakers are even more scandalous now. Lacson said there are senators with P5 billion, some even with P10 billion. And there’s a congressman with as much as P15 billion.

It will be recalled that 12 years ago, the Supreme Court declared pork barrel funds unconstitutional. Well, the greedy crocs in Congress found a new way of getting it anyway.

According to Lacson, he and then-senator Franklin Drilon succeeded in removing the budgets for dredging and flood control projects, which he described as the root causes of corruption. “We succeeded in removing them in the bicam before we termed out in 2022. Now they’re back with a vengeance.”

Lacson cited one item in the budget that showed that “a very small barangay in a small town” received a P1.9-billion allocation, while another small town was allotted a P10-billion budget.

“Imagine a P10-billion appropriation for a small town with 10,000 residents. It is an inequitable distribution of the budget,” Lacson said.

The FY 2026 NEP to be submitted to Congress is set at P6.793 trillion, which is about 7.4 percent higher than the FY 2025 General Appropriations Act (GAA) total of P6.326 trillion.

If BBM gives in to the avarice of his political allies for pork, national interest projects will be delayed. Or DOF will have to increase borrowing. The national debt is now recorded at P16.75 trillion as of end-April 2025.

Financial analyst Jonathan Ravelas pointed out to BusinessWorld that our borrowings must be allocated efficiently.

“If investments go into infrastructure, digitalization and human capital development — areas with high multiplier effects — then yes, growth can outpace debt,” he said.

“But if borrowing merely plugs fiscal gaps and subsidies without boosting productivity, the ratio may remain elevated or worsen. The key is quality of spending, not just quantity,” he added.

For former congressman Joey Salceda “the real question is whether our economy and tax base are growing fast enough to support another shock.”

Salceda noted that from 2004 to 2019, the country reduced its debt-to-GDP to 39.6 percent from 71.6 percent by expanding the economy and improving tax revenue.

He warned that the proposed 2026 national budget of P6.793 trillion — only 7.4 percent higher than this year — would be “contractionary in real terms” when nominal GDP is expected to grow by about eight percent.

“The government’s role in driving growth will be more limited, so spending must be efficient and well-targeted,” Salceda said.

Salceda added that sectors like infrastructure, food systems, education and digital services are key to widening the tax base and supporting long-term revenue resilience.

We all know the right thing to do. But will BBM and his political allies prioritize the national good instead of the same old story? Will the looting during the secret bicam meeting perpetuate monkey business as usual?

Let’s have the bicam live-streamed to prevent the usual hocus-pocus.

Boo Chanco’s email address is [email protected]. Follow him on X @boochanco