Constitutional issues in 2025 budget may reach SC

MANILA, Philippines — If President Marcos won’t veto it, the labor coalition NAGKAISA intends to question the proposed 2025 national budget before the Supreme Court for violating the constitutional mandate to prioritize education and health.

Other groups and individuals are also reportedly set to challenge before the SC the constitutionality of the 2025 General Appropriations Act (GAA), in which Congress added billions to the original expenditure program submitted by the executive for certain agencies.

NAGKAISA chair Sonny Matula said that should the President sign the proposed budget as is, NAGKAISA will file a suit against the government.

“We will not allow the government to abandon its duty to the people,” Matula said. “This fight is not just about numbers – it is about lives, justice and our nation’s moral compass.”

According to Matula, the zero budget subsidy for PhilHealth is a direct assault on social justice and the Constitution and thus Marcos should veto the budget proposal.

Matula said the zero-subsidy blatantly violates the Constitution’s mandates to prioritize health and social justice. It undermines the public’s right to accessible and affordable health care while leaving hospitals and health care workers struggling to deliver services. “Public health is not a privilege – it is a right enshrined in our Constitution,” Matula said.

President Marcos previously defended the zero subsidy for PhilHealth, claiming its reserve fund of P600 billion would suffice. However, NAGKAISA clarified that the actual reserve is only about P400 billion as per admission of PhilHealth.

Concerned medical and civil society groups on Tuesday also urged the Executive branch to immediately veto the GAA, which removed the subsidy for PhilHealth.

The groups led by the Action for Economic Reforms noted that the allocation of funds under the GAA for 2025 is a gross violation of the Sin Tax law, which earmarks 85 percent of excise tax collections from tobacco and sweetened beverages to PhilHealth for the implementation of the Universal Health Care (UHC) Act.

The broad coalition is calling on President Marcos to heed the widespread opposition to the FY 2025 budget and reject the GAA.

In addition, they called for the immediate reform of PhilHealth, emphasizing that it is the government’s duty to prioritize the health of the people.

Benefits assured

Even with PhilHealth getting zero subsidy for 2025, the state-run health insurer gave assurance that medical benefits to all its members will remain and be subjected to enhancements.

“PhilHealth will continue to pay for the health benefits of all Filipinos, with or without government subsidy. It is our goal to finance the best care and benefits available,” PhilHealth president and CEO Emmanuel Ledesma said.

“Rest assured: all PhilHealth benefits will continue to be paid and will even be improved. We remain dedicated to enhancing our benefits packages and reducing out-of-pocket expenses so that every patient feels the security of their health insurance,” he added.

“Our financial position is strong and sufficient to sustain our operations,” he said, noting that it has a total of P281-billion reserve funds and P150-billion surplus funds, while its investment portfolio is at P489 billion.

Ledesma though added they are looking forward to being provided subsidy funds by the national government after 2025.

Finance Secretary Ralph Recto said PhilHealth has the financial capacity to fulfill its obligations and expand its benefit packages next year even without government subsidies.

Asked if there is a need to adjust the premium contribution of members, Recto said he will leave that decision to Congress.

“But my take is to improve the benefit packages and reduce out of pocket expenses,” he said.

Recto added the allocation of excise taxes from tobacco and alcohol products for PhilHealth under the Sin Tax Law and the Universal Health Care Act are not automatically appropriated and remain at Congress’ discretion.

Meanwhile, the PhilHealth Board of Directors said it has approved the Corporate Operating Budget (COB) for fiscal year 2025 amounting to P284 billion. Of this amount, P271 billion is programmed for benefit expenses, which is higher by 11 percent compared to the 2024 COB.

In a statement released by the Department of Health on Tuesday, DOH Secretary Ted Herbosa, who is also PhilHealth Board chairman, announced that they have approved a higher COB than the current year.

This increase takes into account Board-approved increases in case rates, Z benefits, PhilHealth Konsulta at P1,700 and P2,100 capitation per person and 156 hemodialysis sessions at P6,350 per session.

It also includes funds for emergency care, outpatient mental health, severe acute malnutrition and many other standalone outpatient packages.

Lanao del Sur Rep. Zia Adiong said PhilHealth has enough reserve funds to cover the health needs of Filipinos, noting that during congressional hearings, lawmakers learned that PhilHealth’s investible funds had reached P504 billion.

Veto, reconvene Bicam

Amid the controversy over the Congress-approved 2025 national budget, President Marcos is left with two options to address the multi-billion pork barrel insertions in the next year’s expenditures and rectify the decrease in the education sector to fund projects under the Department of Public Works and Highways (DPWH), former Senate President Franklin Drilon said.

In an interview on ANC’s Headstart yesterday, Drilon said the President could exercise the line-item veto or ask Congress to reconvene the bicam and adjust the budget.

“The President has the power to exercise a line-item veto. He can veto certain sections of the General Appropriations Bill in order that the constitutional mandate can be complied with,” Drilon explained.

“The President can exercise his persuasive powers to ask Congress to reconvene the bicam and reconsider its earlier moves,” he said, adding that reconvening could be done.

“In fact, worse than that, even after the bicam has finished its work, after it is sent to the president, in many instances, the president will return the bill which has been approved in the bicam and ask the bicam to reconvene. This is not technically correct, but it is being done in the past,” Drilon said.

He raised concerns over the persistent presence of pork barrel in the national budget, noting that it remains a recurring issue.

But House leaders, including Deputy Speaker David Suarez and appropriations committee vice chair Raul Angelo Bongalon rejected the reconvening of the bicam, saying both chambers had already ratified the GAA. — Keisha Ta-asan, Cecille Suerte Felipe, Jose Rodel Clapano