Senator JV Ejercito on Wednesday flagged sweeping changes in the version of the 2027 budget passed by the House of Representatives, saying it deviates significantly from the National Expenditure Program (NEP) due to massive cuts to flagship railway projects, while allocations for flood control projects surged by another P8.04 billion.
“We confirm that there are significant changes from the NEP to the House version of the GAB,” he said in a briefing. “We will not take this at face value.”
Ejercito chairs the Senate committee on finance, the counterpart of the House appropriations panel, which is tasked with scrutinizing the proposed national budget and the House-approved version of the General Appropriations Bill (GAB).
The Senate panel received the House’s GAB on Tuesday and immediately noticed sharp cuts to the budget for foreign-assisted projects, amounting to P130 billion, and the Department of Transportation (DOTr), which was reduced by P40.4 billion.
The cuts affected funding for major projects — the Metro Manila Subway Project (MMSP) and the North-South Commuter Railway (NSCR) — which saw reductions of P19.7 billion and P15 billion, respectively.
Ejercito argued that delays caused by the budget cuts could expose the government to financial repercussions, including billions of pesos in loan interest, commitment fees, and penalties, while slowing economic growth.
“This has been brought to the attention of the President already when he went to Japan and when the Japanese officials went here seven times, they pointed this out. And now, [the funding] has been cut again,” Ejercito said. “This is our obligation, and the more we delay, the more expensive it will be for us.”
The MMSP and NSCR — also known as the expanded Philippine National Railways — aim to meet the growing demand for public transport and ease traffic congestion in Metro Manila.
They had initial cost estimates of P488.5 billion and P873.6 billion, respectively, for a combined price tag of P1.4 trillion.
Japan shoulders the bulk of the projects’ costs through loans, while the Philippines covers the remaining share.
Opposition House lawmaker Edgar Erice has long claimed that congressional insertions in recent budgets displaced funds for more than 15 major projects, including the MMSP and NSCR, both flagship projects of President Ferdinand Marcos Jr.
The MMSP and NSCR were initially scheduled for completion on or before Marcos leaves office in 2028. However, following budget changes and other delays, the MMSP’s completion date was moved to 2032, while the NSCR’s full operations were pushed back to 2033. The DOTr, however, expects partial operations covering the Valenzuela-to-Malolos segment in December 2027.
Ejercito emphasized that these delays are counterproductive, as they increase costs, hamper long-term economic growth and job creation, and tarnish the Philippines’ image.
Flood control under scrutiny
Beyond major infrastructure projects, the House made several significant budgetary changes, according to Ejercito.
These include a P9.5-billion cut to the calamity fund, despite the threat of El Niño and its potential consequences. In healthcare, P4.4 billion was slashed from the Health Facilities Enhancement Program, while P4 billion was cut from immunization and P2 billion from health promotion. Meanwhile, the allocation for the Medical Assistance Program, which provides financial assistance for the medical expenses of indigent patients, increased to P23.9 billion.
Ejercito called the changes “puzzling,” noting that they run counter to the Universal Health Care Law, which aims to strengthen preventive care and avoid higher curative costs when patients are hospitalized.
Meanwhile, the House increased funding for a new line item, Presidential Assistance to Farmers and Fisherfolk, allocating P10 billion under the Department of Agriculture.
As for flood control, Ejercito flagged an P8.04-billion increase for general flood mitigation structures, even as allocations for projects within major river basins were cut by P4.6 billion.
The Department of Public Works and Highways’ proposed budget for 2027 stands at P643.95 billion, approximately 20% higher than this year’s allocation. Of the amount, 16%, or P107.4 billion, is earmarked for flood control projects.
Ejercito suggested that the Senate would likely not compromise with the House over the increase in flood control funding. He said the initial recommendation was to halt new flood control projects, prioritize unfinished ones, and focus only on the areas most prone to flooding.
The Senate, he said, would closely examine which projects would receive funding, where they would be implemented, and why allocations had changed significantly.
Overall, Ejercito claimed that the House had adjusted P206 billion from the P7.2-trillion NEP. He lamented that such a large amount in budget changes leaves little room for the Senate to propose its own institutional amendments.
The committee chair reiterated that the Senate would not rubber-stamp the House-approved GAB and would scrutinize the budget line by line to prevent irregularities or duplicate entries.
The committee aims to finalize subcommittee reports by 23 October, with plenary debates scheduled for November. The Senate is targeting passage of the budget by the second week of December before transmitting it to Malacañang for Marcos’ signature.