By Wilnard Bacelonia
MANILA – The Senate will prioritize restoring funding for foreign-assisted infrastructure projects in the proposed 2027 national budget to prevent further construction delays and ensure the government honors its financial commitments to international development partners.
Senate Committee on Finance chairperson JV Ejercito reiterated the plan Thursday during the budget hearing of the Department of Budget and Management (DBM), citing concerns over the House of Representatives’ reduction of approximately PHP130 billion in allocations for foreign-assisted projects (FAPs).
“We intend to restore, especially the loan proceeds and the government counterpart,” Ejercito said, referring to the two major funding components of projects financed through foreign loans.
“We do not want any delays anymore. These are obligations,” he stressed.
The senator said the government must avoid repeating the funding problems encountered in 2024 and 2025, which affected the implementation of major infrastructure projects.
He emphasized that these long-term investments should be protected because of their contribution to economic development and connectivity.
Among the projects affected by the House adjustments are the Metro Manila Subway, North-South Commuter Railway, Laguna Lakeshore Road Network and Bataan-Cavite Interlink Bridge.
An analysis by the People’s Budget Coalition showed that foreign-assisted project allocations were reduced from approximately PHP414.8 billion in the National Expenditure Program (NEP) to PHP284.8 billion in the House-approved spending bill.
The reductions raised concerns over possible implementation delays and additional financial costs, as loan agreements with international development partners remain binding even when annual appropriations are reduced.
Earlier, Sen. Panfilo Lacson warned that delayed implementation could expose the government to commitment fees and other liabilities on undrawn foreign loans.
*Funding commitments*
During the hearing, DBM Acting Secretary Kim Robert de Leon reported that the proposed 2027 budget includes PHP42.59 billion in unprogrammed appropriations to support foreign-assisted projects already in the pipeline.
The allocation forms part of the PHP111.98-billion unprogrammed appropriations proposed by the executive branch, representing the lowest nominal level since 2019.
Unlike programmed appropriations, unprogrammed funds serve as standby spending authority and can only be released when specific funding conditions are met.
Ejercito said the Senate would carefully review the House-approved budget to determine the necessary adjustments, particularly for loan proceeds and government counterpart requirements.
The review comes after the Supreme Court declared unconstitutional certain congressional increases in the 2024 and 2025 national budgets and invalidated provisions governing unprogrammed appropriations in the 2026 spending law.
In his opening statement, Ejercito emphasized that the Senate must ensure the proposed 2027 budget complies with constitutional requirements while sustaining essential government programs.
He said the chamber would give particular attention to major infrastructure commitments and other essential services, including health, as it prepares to take up the spending bill in plenary. (PNA)
