Business community sounds alarm on P200-B budget reallocation

Business groups are urging President Marcos Jr. and Congress to reform the 2025 budget, warning that Congress’ P200-billion fund reallocations—diverting money from healthcare, education, and social services—could be used for political gain ahead of the elections, weaken transparency, and threaten economic stability.

While the budget is Congress’s prerogative, five business organizations and economics professionals are stepping in, calling for transparency and safeguards against political misuse.

These include the Financial Executives Institute of the Philippines, Fintech Alliance, Justice Reform Initiative, Makati Business Club, Management Association of the Philippines, Philippine Business for Social Progress, and UP School of Economics Alumni Association.

Their warning

“The undersigned business groups urge policymakers to safeguard the country’s long-term economic stability by ensuring that future budgets prioritize the short- and long-term needs of the Filipino people through the passage of the reforms proposed above,” the joint statement on Wednesday showed.

“The diversion of programmed funds from priority projects to discretionary spending on local projects with more political than economic purposes will result in adverse long-term effects, in particular, affecting the Philippines’ credit standing—making future borrowing more expensive and limiting our ability to fund critical programs,” it added.

What happened?

The bicameral committee slashed over P200 billion from healthcare, education, and social services in the 2025 budget.

These funds were redirected to local infrastructure and unconditional cash transfers, raising concerns about political favoritism and dependency.

Business groups warn that such discretionary spending risks reviving pork barrel practices, which the Supreme Court had previously ruled unconstitutional.

3  recommendations

According to the joint statement, Congress should first disclose records of the Bicameral Conference Committee, which currently operates behind closed doors.

Second, the government should prioritize conditional cash transfers (4Ps) over unconditional ones, with clear beneficiary lists and safeguards for unprogrammed funds.

Third, citizen participation should be allowed in the Development Budget Coordination Committee (DBCC) to align budget priorities with public needs. These measures aim to prevent fund misuse and ensure resources go where they are most needed.

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