Photo from Makati Business Club FB page
MANILA, Philippines 鈥斅燭he Makati Business Club believes that the national budget should be designed to address the concerns and needs of the Filipino people.
Thus, MBC calls for a more transparent and needs-aligned corrective actions to the 2025 budget.
The Makati Business Club (MBC) has joined the mounting calls to scrutinize next year鈥檚 proposed P6.35 trillion national budget that President Marcos is expected to sign on Dec. 30.
In a statement issued on Saturday, MBC called for a more transparent and accountable process in finalizing the 2025 General Appropriations Act (GAA), as it criticized some of the allocations and sounded the alarm on the decisions made by the Senate and House bicameral committee.
READ: Marcos 鈥榯horoughly reviewing鈥� 2025 budget to conform to charter 鈥� Palace
鈥淢BC believes that the national budget should be designed to address the concerns and needs of the Filipino people. Thus, MBC calls for [more] transparent and needs-aligned corrective actions to the 2025 budget,鈥� it said.
While it commended Marcos鈥� initiative in scrutinizing the bicameral version of the 2025 GAA, it called out 鈥渟ome of the adjustments made鈥� during the bicameral conference.
These adjustments include next year鈥檚 budget for the Department of Public Works and Highways (DPWH) and the Department of Education (DepEd) as approved by the bicameral body.
Clarification from House
MBC pointed out that the DPWH was given a P1.1 trillion budget, while DepEd was only allotted P737 billion.
鈥淭his is equivalent to a net increase of almost P289 billion. Putting the DPWH budget higher than DepEd鈥檚 may violate the constitutional rule, which mandates that the highest budgetary priority should be for education,鈥� it said.
This, however, has been clarified by Zambales Rep. Jefferson Khonghun earlier this month when he said that next year鈥檚 education budget is P1.055 trillion, while that of the DPWH is P1.033 trillion.
Khonghun said the education budget encompasses funding for agencies under the sector, including DepEd (P782.17 billion), Commission on Higher Education (P34.88 billion), state universities and colleges (P127.23 billion), Technical Education and Skills Development Authority (P20.97 billion), Local Government Academy (P529.24 million), Philippine National Police Academy (P1.37 billion), Philippine Public Safety College (P994.3 million), National Defense College of the Philippines (P334.64 million), Philippine Military Academy (P1.76 billion), Philippine Science High School System (P2.80 billion), and Science Education Institute (P7.49 billion).
No sufficient explanation
Khonghun added that funding for education-related infrastructure amounting to P14.76 billion and the salary differential under Executive Order No. 64 worth P60.59 billion further increased the total education budget to P1.055 trillion.
In comparison, the DPWH鈥檚 original allocation of P1.114 trillion was reduced by P82 billion in convergence projects, but with salary differentials under EO 64, it still totals P1.033 trillion.
MBC also scored the P19-billion budget earmarked for Congress, saying there was 鈥渘o sufficient explanation on the need or justification for this budgetary adjustment.鈥�
It also questioned the P26 billion allotment for the government鈥檚 financial assistance subsidy to 鈥渘ear-poor鈥� families under the Ayuda Para sa Kapos sa Kita Program (Akap).
鈥淭here is no information on how this will be implemented and conditions required for receiving the assistance. We note that the Senate has also previously questioned the funds for the program,鈥� it said.
The Department of Social Welfare and Development (DSWD) , in a statement issued on Thursday, reiterated that AKAP is not a pork barrel program.
DSWD Sec. Rex Gatchalian made the pronouncement in response to retired Supreme Court Senior Associate Justice Antonio Carpio, who claimed that the cash assistance under AKAP 鈥渞esembles the controversial pork barrel鈥� and that 鈥渂arangay officials submit the list of beneficiaries.鈥�
鈥淲ith due respect to the former Supreme Court Justice, AKAP is not a pork barrel since any good Samaritan can refer potential beneficiaries, and the barangay has nothing to do with AKAP based on our existing guidelines,鈥� Gatchalian said.
He also clarified that the AKAP guidelines [do] not empower barangay officials to make the list of beneficiaries who will receive the cash assistance from the agency on their own.
He further explained that while legislators and local officials can refer potential aid recipients, it is the agency鈥檚 social workers who vet the beneficiaries to make sure that they are eligible based on the AKAP guidelines.
Top concerns
Lastly, the business groups scored the removal of the P74.43-billion subsidy for the Philippine Health Insurance Corp. (PhilHealth), citing its importance as a 鈥渒ey agency鈥� being the state health insurer.
The budget for Akap and the zero-subsidy for PhilHealth have been among the strongly criticized budget items. Some senators have even called on the President to use his power to veto these controversial items.
MBC, headed by Edgar Chua, chair of its board of trustees, said the government should instead focus on gut issues concerning Filipinos.
It cited the March 2024 Ulat ng Bayan survey conducted by Pulse Asia, where the top three concerns were controlling inflation, increasing the pay of workers, and fighting graft and corruption in the government.
鈥淭herefore, the 2025 budget should focus on addressing supply-side inflation, improving infrastructure, addressing [the] workforce skills gap, and driving government efficiency and transparency to attract more job-creating investments,鈥� MBC said.
The business group鈥檚 board of trustees also includes Jaime Augusto Zobel de Ayala II (vice chair), Jose Cuisia Jr., Ramon del Rosario Jr., Doris Magsaysay Ho, Jose Victor Paterno, and Manolito Tayag.
Malaca帽ang earlier deferred the scheduled signing of the GAA on Dec. 20 to have more time to conduct a 鈥渞igorous and exhaustive review.鈥�
Marcos is expected to sign the national budget on Monday, Rizal Day.