Last words on this year's controversial budget

In theory, the Philippine Appropriation Act is the financial plan of the national government for the whole year, containing not only the approved expenditures but also the targeted amount and sources of revenues as well as the intended borrowings to finance the deficit between income and expenses. But that is just the theory.

Locally, the Cebu City Council slashed the mayor's proposed budget. It was not essentially a financial decision. It was a political one, a clever and astute move preparatory to the May local election. The veto power and the override, if any, are also political acts. Between now and the May polls, every decision is political.

The truth is that the process of budget making, whether national or local, is more of a political strategic act, especially in an election year like this. That is why, contrary to the constitutional mandate to give education the biggest allocation, this year, the DPWH gets ?1.1 trillion out of ?6.352 trillion total budget while education is going to get only ?737 billion. The Makati Business Club is the more progressive and independent association of business owners that questions the budget and asks that the Palace should take a very serious look at it. This group is more vigilant, compared to the Philippine Chamber of Commerce and Industry, which never questions any government decision, even as the economy is directly impacted by the national budget.

The Makati Business Club is led by such prestigious and eminent business leaders as Jaime Augusto Zobel de Ayala, former SSS chairman Jose Cuisia Jr., Ramon del Rosario Jr., Doris Magsaysay Ho, Jose Victor Paterno, and Manolito Tayag. Because of too many questions, and objections, including those of presidential sister, Senator Imee Marcos, the president had to postpone the signing of the budget from December 20 to December 30, Rizal Day, a national holiday. The administration's economic team must have been working very hard during the holidays to do some "immediate repairs" or some hurried rectifications, but the legal question is: Can the executive make changes in a budget that has already been passed by Congress?

There were expectations that there should be legislative corrections, or else the president can exercise his option for a line veto of certain unacceptable portions. But certain audacious members of the Lower House have made some threats that they could override the veto, if at all. To me, with the presidential cousin as House speaker, that option to override is a long shot. Anyway, the president has already signed the budget prior to the new year. Thus, we need to accept the political reality of the budget as the administration's political weapon to make its candidates win in the May midterm elections.

The nation has to accept that this year's budget of ?6.352 trillion is 10.1% higher than the 2024 appropriation of ?5.768 trillion. This budget is also 22.1% of the economy's GDP. The budget this year includes ?876.7 billion for debt service. A large portion of the budget goes to our creditors because we keep on spending way beyond our revenues and every year like this one, our president and his economic team keep pushing the country into endless deficit spending. Our government continues to put on the shoulders of the future generations the burden of paying huge debts approaching the total amount of ?15.1889 trillion or $273.9 billion, as of October 2024.

That means that what will be left after amortizing our huge debt is only ?1.083 trillion for general public service and ?419.3 billion for national defense. This is quite disturbing that our debt payments are more than double our defense budget. That leaves ?1.853 trillion economic services and ?2.121 trillion for social services. The country is going to spend much much higher than our developmental investments. These budgets for ayuda, for hand-outs, these giveaways, are going to be used by administration candidates to promote the candidacies of administration-affiliated candidates for senators, congressmen, governors, mayors, and other LGU bets.

No matter what the Palace will say, no matter what your congressman, governor or mayor will tell you, the truth is that this budget is a political armament to be used by the party in power to consolidate their political control in preparation for the presidential derby in 2028. The Makati Business Club knows the game the trapos are playing.

Perhaps it's time that we open our eyes to this reality.