The national budget: People-centricity and good governance
A few weeks ago, Congress began deliberations on the proposed P7.2 trillion national budget for 2027, the government’s most important financial plan for the coming year.
The government may be viewed as the country’s largest organization as it employs more than 2 million workers and manages trillions of pesos in public resources and funds. Just as a private corporation has operating expenditures (OPEX) and capital expenditures (CAPEX), the government operates under an annual national budget that sets out its spending priorities and funding requirements. The proposed budget is embodied in the General Appropriations Bill, which, once passed by Congress and approved by the President, becomes the General Appropriations Act (GAA).
Effectively, the GAA serves as the lifeblood of government because it provides the resources and funding necessary for the state to perform its most fundamental responsibilities, from educating children and providing healthcare to building infrastructure, supporting livelihoods, and maintaining peace and order.
Notably, this national budget is also a reflection of the government’s priorities.
The 2027 proposed budget is about 6% higher than the P6.7932 trillion approved for 2026 and represents 21.7% of the country’s gross domestic product. Carrying the theme “People-Centered Growth for an Inclusive and Resilient Future,” it prioritizes key areas such as education, healthcare, livelihood, infrastructure, food and energy security, social protection, national security, and community development.
The keywords in that budget theme are very telling. “People-centered growth” implies that the government does not just intend to conduct activities that will lead to economic growth. It means that all activities and programs will revolve around people as the direct beneficiaries.
While this vision is commendable, a truly people-centered budget must translate into concrete improvements in the lives of ordinary Filipinos, in the form of better public services, stronger social protection, and a government that responds to their most urgent needs.
More importantly, it must create opportunities for upward mobility by generating decent and high-quality jobs, ensuring stable incomes, and expanding opportunities for individuals and families to improve their living conditions and build a more secure future for themselves and the next generation.
To make all these intentions achievable, the government should strengthen transparency and push for accountability. No one should be allowed to get away with spending taxpayers’ money in secret.
Based on the proposed 2027 National Expenditure Program, social services will continue to receive the largest sectoral allocation at P2.456 trillion, covering education, health, social security and welfare, employment, and manpower development. Major programs include the Pantawid Pamilyang Pilipino Program (4Ps), the National Health Insurance Program, and the Universal Access to Quality Tertiary Education Program.
Economic services are to receive P1.833 trillion, supporting infrastructure, agriculture, water resources, and other programs intended to stimulate economic activity and create opportunities. General public services receive P1.317 trillion, while defense is allocated P452.4 billion. Another P1.143 trillion goes primarily to the debt burden, including interest payments and net lending to government corporations.
These numbers are enormous, but behind every peso is the taxpayer.
The national budget comes from taxes paid by workers, consumers, businesses, and ordinary individuals. Every peso represents an obligation to the public. This is why the budget process must seek to answer not only how much will be allocated, but also who will benefit, how they will benefit, whether the expenditure is necessary, and whether the money will be properly utilized.
The country cannot afford to repeat the failures exposed by the recent flood control scandal. The allegations of ghost and substandard projects, questionable contracts, and misuse of public funds underscore the need for stronger safeguards, transparency, monitoring, and accountability in the use of public money.
The widespread flooding experienced in August 2026 serves as a stark reminder of the real-life consequences when flood control and disaster-resilience measures fail to adequately protect communities. When infrastructure is poorly planned, poorly built, or never completed, it is not merely government accounting that suffers. Families lose homes, businesses lose income, workers are displaced, and communities bear the consequences.
Congress must therefore subject major allocations in the 2027 budget to greater scrutiny, particularly large infrastructure projects. Every project should have clear objectives, transparent procurement, measurable timelines, and mechanisms for independent monitoring. The public must be able to see where their money goes and whether the promised projects are actually delivered.
The same principle of accountability must extend to every other major pool of public funds, including those that receive less public visibility. This is particularly important when it comes to confidential funds, which are vulnerable to abuse because their nature makes them difficult for the public to independently scrutinize and verify.
Public funds must remain subject to strict controls, proper documentation, auditing, and meaningful legislative oversight. Recent controversies involving confidential funds further underscore the need for stronger safeguards. Congress should closely examine every proposed allocation and demand clear justification for its necessity, amount, intended use, and authorized recipients.
The greater the potential for abuse, the greater the need for scrutiny. Confidential funds are not like petty cash in a cookie jar. They should only be provided when genuinely necessary, such as for law enforcement, intelligence, and national security agencies. They should therefore be subject to safeguards that ensure they are used solely for their lawful and intended purposes.
Ultimately, the goal is not simply to increase or reduce government spending. It is to ensure that every peso appropriated creates genuine public value. A large budget becomes immaterial if funds are wasted, projects are poorly implemented, or resources fail to reach the people they are intended to serve.
Most importantly, public spending should help address the conditions that keep people trapped in poverty and economic insecurity. Government investments should not merely provide temporary relief; they should help create initiatives toward decent work, stable incomes, productive livelihoods, and greater economic mobility.
The national budget is not the government’s money. It is the people’s money entrusted to government for the common good. It is the lifeblood that allows government to serve its citizens. Hence, responsibility demands nothing less than a budget that is responsive to their needs, accountable for every peso, and capable of delivering a better quality of life for Filipinos today and in the future.
Responsible management of the national budget is the first step towards long-term good governance.
---
Venice Isabelle Rañosa is the Research Director of the Stratbase Group.
- Latest
