Yearender: PHL budget system seen as test case for transparency reforms

By Adrian H. Halili, Reporter

THE government’s budgetary system has become a proving ground for transparency reforms, analysts said, as mounting public pressure forces lawmakers to demonstrate greater openness in the wake of corruption scandals.

Analysts noted that unless transparency is imposed in policies, paired with civil society participation, and stripped of patronage-laden allocations, the measures risk being dismissed as optics rather than systemic change.

Joy G. Aceron, convenor-director of transparency group G-Watch, said that it is not enough for only a part of the budget process to be transparent.

“There should be transparency, participation and accountability at all levels from preparations to implementation,” she said in a Facebook Messenger chat, noting that mobilization and education of people should accompany the effort to open the budget process.

Congress has imposed several transparency initiatives for the deliberation of the P6.793-trillion national budget for next year, amid heightened public backlash over opaque budget insertions in the 2025 budget.

The multibillion-peso corruption scandal involving congressional insertions, and anomalous flood control projects fueled further public outcry, as investigations implicated senior lawmakers and government officials.

This has forced the government to impose transparency measures, which Ms. Aceron described as “performative.”

“I don’t think the government knows how to do transparency, participation and accountability that actually work, or they are probably not interested in making it work,” she said. “They only need to appear transparent.”

Adolfo Jose A. Montesa, an adviser for the People’s Budget Coalition, said the backlash from the corruption scandal has pushed legislators to re-earn public trust.

“We hope that it doesn’t end with these one-way mechanisms,” he said in a Viber message. “Genuine participation entails dialogue, and to truly prevent corruption, civil society should have avenues to truly engage the budget process.”

The administration has been under mounting scrutiny over anomalous flood control projects revealed to be substandard, unfinished, or completely nonexistent. This is despite budget allocations to the Public Works department for flood mitigation ballooning to about P500 billion since 2022.

This has also prompted separate investigation by Congress and the Independent Commission for Infrastructure, a three-month old commission created by the President.

According to Mr. Montesa, better transparency is a necessary first step towards broader participation and public scrutiny.

He added that uploaded budget documents had allowed civil society organizations to analyze all the projects of the Department of Public Works and Highways (DPWH) and tag “red flags” based on duplicated projects and overpricing.

Transparency reforms could remain futile if it does not prompt civil society to influence government decision making, Ms. Aceron said.

“Transparency is only a means or tool,” she said. “If the budget was made transparent, but there is no way civil society could have influenced the decisions and hold the legislators to account, transparency will have no meaning.”

Among its transparency reforms, the House and Senate had approved a resolution that allows the live streaming of the bicameral conference committee hearing, a session previously closed to the public. The Senate also moved to have all budget-related documents — including transcripts, hearings and briefings — to be posted within an online platform.

Analysts have, however, noted that live streaming the bicameral sessions expanded visibility of lawmakers as they finalized the national spending plant but fell short of actually being transparent.

Ederson DT. Tapia, a political science professor at the University of Makati, said that despite opening the bicameral panel’s hearing to the public, budget deliberations remained largely closed doors.

“They have improved procedural visibility but not necessarily substantive transparency. Livestreams show deliberations, and documents are published, but key decisions are often settled before formal sessions,” he said in a Messenger chat.

The bicameral conference for the 2026 budget has drawn public ire due to off-camera caucuses and negotiations limiting accountability, as lawmakers tried to reconcile budget allocations for building materials for infrastructure and government aid.

Ms. Aceron said that the general condition of the budget process remained opaque as only a portion of deliberations was televised.

“No efforts to enable participation and accountability in any part of the budget process, and decisions were not explained,” she added.

“There remains a lot of questions about the budget, especially when it comes to allocations that perpetuate patronage, like the ayuda programs and those prone to corruption, like the unprogrammed allocations,” she said.

Senators and congressmen resolved the disagreeing provision of the 2026 national budget after six days of deliberations, delayed by disagreements over additional funding for the DPWH.

Congress ratified the bicameral committee report for the budget on Dec. 29, which President Ferdinand R. Marcos, Jr. signed on Jan. 5, vetoing some P92.5 billion worth of unprogrammed funds.

LEGISLATIVE INITIATIVES
Analysts said that lawmakers must approve several legislative proposals or institutional mechanisms that would change how public funds are approved and monitored, to lessen cases of misuse.

Anthony Lawrence A. Borja, an associate political science professor at De La Salle University, said that the government must pass measures that would improve freedom of information (FOI) and public participation.

“Along with the FOI, strengthening local development councils and expanding participatory budgeting at all levels of government are necessary to ensure that public funds remain actually public instead of slipping into private pockets,” he said in a Messenger chat.

Although the 1987 Constitution recognizes the people’s right to access public information, an enabling law is needed for full implementation. Several measures to improve FOI have already been in the 20^th Congress.

FOI proposals have pushed since 1992 but failed to pass, primarily due to a lack of legislative urgency.

Hansley A. Juliano, a political science lecturer at the Ateneo de Manila University, said that the government must empower budget suggestions from civil society organizations.

“As much as we rely on (the) Department of Budget and Management and Department of Finance to prepare the overall draft of the budget, the Constitution is clear that civil society and sectoral stakeholders have a say in the impacts of budgets,” he said via Messenger chat.

Mr. Juliano added that public participation must be normalized and integrated in committee hearings, not just as a discretionary courtesy.

According to Mr. Tapia, key government budget reforms must include mandatory publication of bicameral working drafts and amendment rationales, a searchable public budget database down to the project level, strengthened independent fiscal institutions, and clearer limits on post-enactment realignments.

“Ultimately, transparency must be embedded in rules, not left to discretion or goodwill,” he added.

Mr. Montesa also noted that the passage of the Citizen Access and Disclosure of Expenditures for National Accountability bill, Senate Bill No. 1506, which requires the government to upload all budget data onto a digital portal, would improve budget scrutiny.

The Senate approved the proposed measure on final reading last month, it awaits action from the House of Representatives.

“Facilitating this kind of transparency will not only enable better accountability, but also open doors for wider participation,” he said.