Manila’s US$113.5 billion budget battle becomes test of fiscal discipline
Supreme Court ruling compels the government to reassess congressional spending power
A Philippine Supreme Court ruling has reshaped the 7.2 trillion peso (US$113.5 billion) 2027 national budget, testing the government's fiscal discipline amid public concerns over opaque legislative insertions. The spending plan, approved by the House of Representatives on October 12, now faces scrutiny from the Senate as plenary debates commence on November 23.
The ruling, which took effect on October 20, prohibits Congress from exceeding the president's recommended appropriations, including both programmed and unprogrammed funds. The decision voided earlier increases in unprogrammed appropriations and a special road fund, prompting lawmakers to reassess the realigned provisions. Critics argue that reductions to key projects, such as the Metro Manila Subway and North-South Commuter Railway, could hinder implementation and increase borrowing costs.
While the court ruling remains pending, the government has indicated it will seek clarification and partial reconsideration, with a deadline for filing a motion set for November 4. Lawmakers and economists remain divided on whether the realignments support long-term growth, with some questioning the adequacy of the budget to address pressing social and economic needs.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
