Tuesday, August 18, 2026

2027 NEP Flooded With Lump Sum Allocations? 

THE PROPOSED P7.2-trillion budget for 2027 is filled with lump sum allocations for what has been aptly referred to infrastructure projects for which Sen. Panfilo Lacson sought a thorough review of such appropriations.

In a radio interview, Lacson said: “We have identified certain lump sum appropriations that we believe should not be categorized as such—items that can be questioned or require clarification.”

“When we speak of a lump sum, there is a specific item listed, but the implementation remains unclear. The amount is stated, and there is a description, but we do not know where or how it will be executed,” he explained.

Lacson said he would raise the specific items under the budget of a government agency, which he did not identify, at the Development Budget Coordination Committee briefing set for Aug. 27.

The House of Representatives is expected to tackle the proposed P7.2 trillion 2027 budget next week.

The Department of Budget and Management formally turned over to the House of Representatives on Aug. 11 the 2027 National Expenditure Program (NEP) amounting to P7.2 trillion.

The senator said he and members of his staff had already started assessing the NEP, and that he intends to clarify how and where the lump sum would be used for by requiring a detailed breakdown of each government program, project, or activity.

“If it’s a lump sum, it should be for a calamity fund, since we don’t know when a calamity might strike. But for infrastructure projects—hold on, let’s get the details first. Why use a lump sum for infrastructure projects? That is one thing we observed,” the senator said.

He added that they would also review special provisions that may be used to abuse unprogrammed appropriations.

Lacson also reiterated that they would adhere to the reforms initiated in the budget process by then Senate finance committee chair and now Senate President Sherwin Gatchalian. These include the livestreaming of the bicameral conference committee hearings and posting related documents online.

Lacson related that Sen. Jose Victor “JV” Ejercito, the current Senate finance committee chair, has committed to disallowing insertions not included in the Senate or House versions of the General Appropriations Bill at the bicameral 

Amid the ongoing impeachment trial of Vice President Sara Duterte and the controversy surrounding flood-control projects, Ejercito said the Senate will keep deliberations on the proposed P7.2-trillion national budget for 2027 open and transparent.

Ejercito admits, the budget process would add to the workload of senators, who attend the impeachment trial in the morning and plenary sessions in the afternoon.

“To be honest with you, it’s really exhausting. This is the only time I felt this in my entire stay in the Senate,” Ejercito told reporters in an interview with Cebu media on Friday.

Despite the workload, Ejercito said he will prioritize health care, infrastructure and responsible government spending as the Senate reviews the proposed budget.

According to him, the Finance Committee must balance government spending with accountability, especially as lawmakers examine allocations following the controversy over flood-control projects.

Ejercito said the committee will scrutinize proposed expenditures and ensure that changes to the budget undergo proper review — and avoid last-minute amendments and insertions that could escape public scrutiny.

“Not all amendments and insertions are bad, but it should be done in open plenary,” averred Ejercito even as he called on fellow legislators to help restore public confidence in government spending.

“Open bicam, transparency, we will practice transparency… Also, I will not allow last-minute insertions or amendments anymore during bicam.” 

He said he would prioritize funding for Universal Health Care, which he identified as one of his campaign commitments when he ran for senator in 2022.  He also plans to strengthen funding for PhilHealth, so more beneficiaries can be covered.

Ejercito also identified transportation and major infrastructure projects, including the proposed Mindanao railway system, as priorities.

He said the government should complete ongoing projects, including existing flood-control projects and unfinished sections needed to make existing structures effective, before pursuing new construction. 

He said authorities should address gaps in current projects before starting additional ones. 

He plans to encourage civil society organizations, the academe and other stakeholders to participate in the budget deliberations to provide broader scrutiny of government spending.

The Finance Committee will begin its budget preparations with briefings from the Development Budget Coordination Committee and economic managers scheduled for Aug. 27 and 28

No Backdoor For Insertions

Last Saturday, Ejercito said that the Bicameral Conference Committee should not be used as a “backdoor” for last-minute budget insertions, further ensuring tighter budget process oversight.

“Gagawin nating open to the public ang lahat ng hearing hanggang sa Bicameral Conference Committee. Ang bicam ay hindi dapat maging backdoor para baguhin ang mga pondong dumaan na sa masusing pagdinig ng Senado at Kamara” reads part of his statement.

Ejercito said he pushed to publicize the Bicameral Conference Committee proceedings through livestreamings and posting of budget information online to allow the public track the changes from the proposed National Expenditure Program (NEP) through the Senate and House versions up to the final bicameral version.

The move is aimed at having greater scrutiny over the budget process and end post-enactment interventions, primarily as allegations of the “leadership fund” and budget insertions have resurfaced, as well as claims of large budget allocations, Ejercito said.

The challenge for us as Finance committee chairman is not merely to craft a budget, but to restore public trust in the government’s spending practices, he stressed.

Ejercito assured that tighter oversight does not mean limiting Congress’ power of the purse, including its authority to examine and amend the proposed national budget.

He said that legitimate amendments that go through plenary process will still be allowed, particularly if these are requests by local government units referred to senators, budget adjustments from government agencies, or it addresses needs not included in the proposed budget.

“We as senators can only propose, but it’s the agencies or departments that will validate. We will prevent last-minute insertions and even post-enactment interventions,” he added.

He rejected calls for a blanket suspension of infrastructure projects, further saying that legitimate infrastructure projects must continue, while individuals behind the ghost project scandal be held liable.

“We are for accountability, but development has to continue. If we stop good and reasonable infrastructure projects, government spending will also slow down, and that will affect our economy. Our economy has to continue,” Inquirer quoted him saying.

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