‘Over P600 billion in 2026 budget at risk’

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January 1, 2026 | 12:00am

MANILA, Philippines — A civil society group warned that over P600 billion in the 2026 budget could be at risk, citing increased allocations for aid programs, unprogrammed appropriations and other infrastructure projects.

While acknowledging that no budget is perfect, People’s Budget Coalition spokesperson AJ Montesa said lawmakers should be sensitive to the current context, noting that public trust in the budget process has been shaken by the flood control issue.

“Based on our analysis, there are still many red flags and risks. While they claim there are safeguards for aid programs, our experience suggests these may not be sufficient and they should not have increased or doubled the budget for pork-related programs,” he said.

For 2026, the Congress increased the funding for AICS or Assistance to Individuals in Crisis Situations to P63.89 billion, up from the proposed P26.9 billion. Also, the Medical Assistance to Indigent and Financially Incapacitated Patients has been allotted P51 billion.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas had told The STAR that bigger subsidies may provide short-term relief, but patronage spending fosters dependency rather than productivity.

“If we want real impact, shift funds to infrastructure and small and medium enterprises credit,” he said. “These create jobs, build confidence and drive long-term growth.”

Meanwhile, Rizal Commercial Banking Corp. chief economist Michael Ricafort previously said that assistance programs should aim to lift people out of poverty and help them graduate from aid, except for those unable to support themselves. Otherwise, perpetual subsidies, especially those used for political gain, risk exacerbating the budget deficit.

Montesa said it remains uncertain how the so-called safeguards will be implemented, noting that allocations for AICS and Tulong Panghanapbuhay sa Ating Disadvantaged were doubled from the National Expenditure Program, raising doubts about efforts to fix the system.

“Our recommendation to the president is that if a veto is not politically feasible, and since this involves congressmen’s pork and appears to be a sensitive issue for the President, it seems unlikely that he would veto it so issue an executive order,” he said.

Malacañang announced that President Marcos will sign the P6.793-trillion 2026 budget in early January, following Congress’s approval, while the 2025 General Appropriations Act will be automatically reenacted after its expiration yesterday.

Montesa added that the order is meant to delay the release of certain budget items, allowing time to issue guidelines that would prevent politicization of funds and ensure clear mechanisms for monitoring proper implementation and minimizing corruption.

“This is to truly avoid the politicization of these funds and ensure that, once released, there is a clear mechanism to oversee and monitor whether they are properly implemented,” he said.