Will the Senate consider a P2-B budget cut for 2027?

'If we are asking other government agencies to exercise fiscal discipline and justify every peso of their budget, then the Senate should lead by example,' says Senate finance committee chair JV Ejercito

At the hearing of the Senate‘s proposed budget for 2027 on Thursday, October 22, Senate Secretary Renato Bantug Jr. presented “permutations” of the upper chamber’s budget for next year: P7.7 billion, as provided under the proposed National Expenditure Program (NEP), to as low as P2 billion less that amount, or P5.7 billion.

Bantug said that the various permutations of the Senate budget he presented “will enable the Senate to sustain its constitutional mandate, to legislate effectively, provide accessible and transparent public service, modernize institutional system, maintain responsible management of public resources, while sustaining personnel requirements, essential operating needs, and the delivery of legislative and public-facing services.”

After Bantug’s presentation, Senate finance committee chairman JV Ejercito said: “In the Senate, we are practicing what we preach. We are one of the very few agencies that has a lower budget for 2027…because of the very limited fiscal space. We practice austerity.”

He was apparently referring to the P7.7-billion Senate budget for 2027 under the proposed NEP, which is 10% lower than its 2026 budget.

Less than 20 minutes into the hearing, Ejercito recommended the proposed budgets of the Senate, Senate Electoral Tribunal (P325.1 million), and the Commission on Appointments (P1.1 billion) for plenary consideration.

After the hearing on Thursday, the question left on many people’s minds is, will the Senate indeed practice austerity and give itself a budget cut?

‘Lead by example’

When asked if the various permutations of the Senate budget presented at the Thursday hearing would still be considered during the plenary deliberations even after the P7.7-billion budget was approved at the committee level, Ejercito said on Friday, October 23: “Yes, that’s correct. The P7.7 billion budget was approved at the committee level for plenary consideration. However, it is not yet final.”

“The possible P2-billion reduction is still on the table and will be subject to further discussions during the plenary deliberations,” Ejercito said.

He reiterated that the Senate wants to “lead by example.”

“If we are asking other government agencies to exercise fiscal discipline and justify every peso of their budget, then the Senate should lead by example. We have to hold ourselves to the same standards,” he added.

Senator Panfilo “Ping” Lacson, chairperson of the Senate committee on accounts, shared the same view. While responding to questions on the Supreme Court decision deeming certain provisions of the 2024 and 2025 national budgets unconstitutional, Lacson said on Friday that the eyed Senate budget cut is intended to set an example for the House of Representatives, particularly in the wake of the SC ruling.

“We will reduce about P2 billion just to set the trend for the House to follow. The House added P5 billion but the Senate is considering reducing its proposed budget from the NEP by P2 billion,” Lacson said.

Should the upper chamber decide to do so, it won’t be the first for this budget season. The Department of Budget and Management has moved to slash its own 2027 budget request by P2.7 billion. – Rappler.com