With inflation accelerating, the peso weakening, economic growth slowing and the government’s debt rising to a new record high of P19.66 trillion as of end-September, there should be greater pressure for the judicious use of public funds.
As of end-June, sluggish gross domestic product growth and increased borrowings had already pushed up the debt-to-GDP ratio to a 21-year high of 66 percent.
Fiscal prudence starts with the proper allocation of public funds. It takes many months for executive agencies, working with development planners, to put together the annual national expenditure program. Budgeting for the NEP is supposed to be guided by strategic and cohesive planning.
And yet the nation has seen, over and over again, myopic, self-serving interests of individual lawmakers dominating the budget process, and wreaking havoc on any attempt to inject strategic objectives in the utilization of limited public funds.
Despite the scandal over massive corruption arising from the looting that had apparently been institutionalized in the crafting of the annual national budget, the 2027 General Appropriations Bill crafted by the House of Representatives indicates that congressmen are unmoved by public outrage.
Budget watchdogs have flagged over P1 trillion in questionable items inserted or realigned from the NEP by House members in their version of the GAB.
The People’s Budget Coalition described the flagged items as hard, soft and shadow pork barrel.
“Hard” pork refers to P695 billion mostly in lump sums for infrastructure projects including multipurpose buildings and farm-to-market roads that lack clear documentation, cost justifications and science-based planning.
“Soft” pork refers to P210 billion in social assistance or ayuda used for patronage and distributed through discretionary referrals of politicians.
“Shadow” pork refers to P112 billion in unprogrammed or standby appropriations that can be released with wide discretion.
The red flags have prompted even the business community to issue a statement of concern over the mangling of the proposed outlay for 2027.
Last Thursday, over 30 business groups issued a joint statement, urging Congress to remove the flagged insertions and correct the questionable realignments. The groups also called for the restoration of P130 billion in funding for foreign-assisted projects. The delayed implementation of FAPs due to the withdrawal of counterpart funding is costing the country billions in commitment fees and other penalties.
The Senate can still respond to public concerns and put an end to unconscionable business as usual in the budget process.