[In This Economy] The 2027 budget: Hocus-pocus prevails once more

The Philippine Congress is poised to pass a controversial P7.2-trillion national budget for 2027, but much of it is earmarked for interest payments and local government shares, raising alarms about fiscal priorities.

As lawmakers shift their focus to the upcoming 2028 elections, concerns about budget transparency and accountability remain high, particularly after recent scandals involving flood control funds.

A Budget With Strings Attached

A staggering 15.5% of the 2027 budget is already allocated for interest payments, with an additional 20% set aside for the National Tax Allotment, significantly limiting available funds for essential public programs.

Historically, Congress has added funds to the budget only for the President to remove many of those allocations in subsequent proposals. This cyclical tug-of-war creates uncertainty about which programs will actually receive funding.

In previous years, Congress often inserted substantial funds into the budget, but only 30% to 50% of those additions typically survive into the next proposal. This year could see a repeat of that pattern.

Red Flags on Transparency

Despite promises for greater transparency following the flood control scandal in 2025, civil society groups have reported feeling sidelined during budget discussions. The appropriations committee approved the entire budget without amendments.

Recent reforms aimed at increasing public participation have not fully materialized, as watchdogs have been excluded from crucial agency hearings.

As Representative Mika Suansing noted, the 2027 budget process was meant to retain reforms, but stakeholders are questioning whether these changes will genuinely enhance accountability.

Looking Ahead

With the 2028 elections looming, the potential for budgetary mismanagement raises serious implications for governance. Citizens and civil society organizations must remain vigilant to ensure that fiscal priorities align with public welfare rather than political expediency.

The current trajectory suggests that as the outrage over past scandals wanes, the likelihood of budgetary hocus-pocus re-emerging grows. Stakeholders must push for genuine accountability and transparency in the budget process.