Experts Urge Congress to Prioritize Manufacturing, Infrastructure, Energy in 2027 Budget

CONGRESS should use its deliberations on the proposed P7.2-trillion national budget for 2027 to prioritize reforms that strengthen manufacturing and support investments in infrastructure, energy security, digital transformation, education and workforce development, analysts said. The Department of Budget and Management (DBM) is scheduled to turn over the proposed budget to Congress by Aug. 14. Under National Budget Memorandum No. 158, the proposed spending plan is equivalent to 21.7% of gross domestic product (GDP). It would be the country’s largest national budget and 6% higher than this year’s P6.79-trillion spending plan. Ederson DT. Tapia, dean and professor of public administration at the University of Makati, said a stronger manufacturing sector would generate quality jobs, expand exports, promote innovation and reduce dependence on imports. “Congress should prioritize structural reforms that strengthen the country’s manufacturing base alongside investments in infrastructure, energy security, digital transformation, education, and workforce development,” he said. Mr. Tapia said these measures should be complemented by agricultural modernization and regulatory reforms that improve the ease of doing business to make the economy more competitive, resilient and inclusive. Acting Budget Secretary Kim Robert C. de Leon said the DBM has subjected agency proposals for the 2027 national budget to “one of the most rigorous reviews in recent years.” He said proposals were evaluated based on their implementation readiness, strategic relevance, measurable outcomes, fiscal sustainability and alignment with the Philippine Development Plan. “The national budget should never become a collection of wish lists. Nor should it accommodate projects that cannot withstand careful scrutiny,” he said at a Democracy Watch forum last week. According to the 2027 budget call, priority regional programs must also secure the endorsement of their respective regional development councils before they can be included in agency proposals. Mr. De Leon said the requirement will strengthen coordination between the national and local governments, ensure that investments respond to regional needs, and give communities a greater role in setting priorities. “The best way to protect the national budget is to ensure that questionable projects never enter it in the first place,” he said, adding that transparency should continue throughout budget implementation. People’s Budget Coalition Co-Convenor Adolfo Jose Montesa said opacity in budget decision-making and barriers to meaningful public participation were the main factors behind the flood control corruption scandal. He cited what he described as former Ako Bicol Party-list Rep. Elizaldy S. Co’s use of a small committee to distribute projects, last-minute insertions by the bicameral conference committee and undisclosed funding formulas used by the Department of Public Works and Highways. Mr. Montesa also said infrastructure master plans have largely been set aside beginning under the Duterte administration, resulting in flood control projects shaped by political accommodations rather than scientific or technical planning. “The most important reform is really having genuine, meaningful participation of non-government stakeholders,” he said. Mr. Montesa said civil society and people’s organizations, journalists and the private sector should have real-time access to budget information and have a meaningful role in providing feedback as proposals are discussed. He said public participation should be embedded in every phase of the budget process, from preparation and legislation to execution and accountability. IBON Foundation Executive Director Jose Enrique A. Africa said preventive safeguards must be accompanied by genuine accountability for officials and contractors implicated in corruption-plagued projects. Mr. Africa said accountability should be an immediate priority, noting that while an estimated 1,200 to 1,500 government officials and contractors may have been implicated in the flood control mess, cases have been filed against about 50 individuals only. “Such limited accountability reinforces the impression of political selectivity that keeps the broader ecosystem of pork barrel, patronage and corruption untouched,” he said. He called for the full public disclosure of project selection criteria, feasibility studies, cost estimates, implementing agencies, contractors and subcontractors, contract variations, and physical and financial progress in open and searchable formats. Preventing pork-barrel corruption requires changing both its incentives and consequences, Mr. Africa said. “As long as corruption remains low-risk and politically selective, and as long as the budget continues to reward patronage over public need, governance failures in infrastructure spending will persist,” he added. The flood control corruption scandal erupted last year after government officials, lawmakers, and contractors were linked to nonexistent or substandard projects. — Justine Irish D. Tabile