Palace operations to continue despite 64% budget cut, says Executive Secretary

MANILA, Philippines — The Office of the President (OP) will be able to maintain its operations despite a proposed 64-percent cut in its budget for 2027, Executive Secretary Ralph Recto said in a statement on Sunday. The House appropriations committee earlier voted 37-5 to swiftly end debate on the OP’s P10.15-billion proposed budget, cutting short discussions after the panel deferred questioning over its spending plan due to parliamentary courtesy. Recto said the OP’s proposed budget was “enough for the center to oversee government operations, from responding to emergencies, delivering public services, monitoring economic plans, and protecting the national interests.” “We are asking for less while remaining fully prepared to do more,” Recto said. The OP’s 2027 proposed budget is significantly lower than its P28 billion budget this year, the bulk of which, at P17.55 billion, was earmarked for hosting the 2026 Asean Summits. Recto said the OP’s budget cut was due to the “streamlining of the operations” of the OP’s 49 delivery units and the completion of activities related to the Philippines’ hosting of the 48th and 49th Asean Summits this year. The funding will support Cabinet meetings, policy consultations, presidential engagements, and the daily operations of Malacañang as the nation’s principal center of executive decision-making and inter-agency coordination. It will also help deliver timely assistance to vulnerable sectors and enable the government “to mount response to contingencies and challenges.” READ: Budget watchdog flags ‘worrying’ House tradition on OP budget “Every day, the president’s schedule is full because the demands of governing do not pause. But activity alone is not our measure of performance,” Recto said. He assured that every policy, meeting, engagement, and official mission will produce a clear public dividend, whether through jobs and investments, stronger national security, better public services, or greater opportunities for Filipinos. He likewise stressed that fiscal discipline and accountability remain at the core of the OP’s operations. He also assured lawmakers that the proposed budget was crafted strictly within the parameters and processes established by the Department of Budget and Management (DBM). “We sought no special treatment,” Recto said. READ: Tinio questions OP’s secret funds, seeks fair transparency rules Due to the parliamentary courtesy extended by the House to the OP, lawmakers were not able to scrutinize its P4.56 billion confidential and intelligence funds request for 2027, the same amount it had in the 2026 national budget. The OP also did not need to explain the P1.014 billion it requested for its local and foreign missions and state visits budget for 2027 — slightly lower than its current budget of P1.018 billion for travel expenses. The OP also has direct oversight authority over the Local Government Support Fund (LGSF), which the Marcos administration is proposing to allocate a record-high P58.32 billion in 2027. Critics warned this might become a tool for political patronage for the upcoming 2028 elections. The same deference is also expected to be extended by the Senate finance committee once the OP’s 2027 proposed budget reaches the upper chamber. Budget watchdogs, however, have been calling for an end to stop the traditional practice of extending congressional courtesy to OP, as it violates the system of checks and balances designed by the Constitution. /atm