DBM chief: Ayuda fine, but where’s the money?

MANILA, Philippines — State aid or ayuda is OK, but where’s the fund for it?

This, in effect, was the argument raised as lawmakers in the 20th Congress push for more state-funded dole-outs.

Budget Secretary Amenah Pangandaman said prioritization and sustainability must be considered amid the government’s limited fiscal space.

Over the past week, certain members of the House of Representatives and the Senate have filed their priority bills and resolutions that they want to pursue in the next three years.

For one, Batangas Rep. Leandro Leviste proposed a monthly allowance of P1,000 for all students from kindergarten to college to cover expenses on food, transportation and school supplies. A similar measure was filed by his mother, Sen. Loren Legarda.

Pangandaman said measures like these could hurt the country’s already limited fiscal space if the government will not be able to find funding sources.

“We have our medium-term fiscal framework that looks into our revenue projections until 2028. And then here comes a new law that has a big budgetary impact,” Pangandaman told The STAR.

“How can we fund it if there’s no parallel source of revenue? We can [do so] but it could hit the other items that we are already funding,” she said.

Based on the budgetary impact assessment of the Department of Budget and Management (DBM), the P1,000-monthly allowance would require P243 billion per year.

The estimate includes all students across formal and non-formal Department of Education-managed schools, private schools and state universities and colleges.

According to the DBM, both bills have yet to be referred to the department for comments as Pangandaman said laws that will have significant budgetary impact would need further study.

“First of all, it needs sustainability. It’s nice, it’s good to hear but where will we get that?” Pangandaman said.

“I think we also need to prioritize what we want to help in the education sector. Do the kids need an allowance? Or do they need better teachers, classrooms, textbooks? We need to look at the needs of our students,” she said.

to 12 program and calling for better implementation.

In a manifesto posted by Ateneo de Manila University on its official Facebook page, prominent individuals joined other stakeholders in backing the program. These include Lingayen-Dagupan Archbishop Socrates Villegas, former budget secretary Butch Abad, former finance secretary Cesar Purisima and former tourism secretary Narzalina Lim.

“The private sector recognizes the necessity of a qualified, competent, and competitive workforce for the continued development, growth and competitiveness of the Philippine economy. This, in turn, requires a strong basic education system to provide the fundamentals for a skilled workforce,” the signatories said.

The coalition issued the statement in response to Senate Bill 3001 filed by Senate President Pro Tempore Jinggoy Estrada, which seeks to repeal the SHS component of the K to 12 program.

They emphasized that SHS is part of the solution, not the problem. When implemented properly, the program provides practical, preparatory and employable skills needed to thrive in college, employment or entrepreneurship.

“This is critical in an economy that continues to evolve and where demand for skilled workers is growing,” the group noted.

However, they acknowledged serious implementation issues, including persistent learning gaps, poor industry alignment and limited immersion opportunities.

These, they argued, must be addressed through reforms in teacher training, curriculum relevance and stronger public-private collaboration.

“We urge the government to view these issues not as grounds for abandoning the reform, but as an opportunity to deepen its implementation,” the statement added, echoing President Marcos’ directive to improve the SHS program.

The joint appeal was backed by major academic institutions, including De La Salle University, Miriam College, Xavier University, University of the Assumption, University of Pangasinan, Southwestern University, Araullo University and Iloilo University.