[In This Economy] Ushering in 2026 with the primary reenacted finances in 7 years: What now?

 Comfortable New Yr!

With President Ferdinand Marcos Jr. failing to signal the nationwide finances, we’re coming into 2026 with a “reenacted finances,” if just for just a few days or perhaps weeks.

That is set to be the primary reenacted finances since 2019. In that 12 months, the finances was additionally stymied by controversies and frictions surrounding pork allocations and insertions. Outdated governance issues are hounding us in 2026.

What led to the 2019 reenacted finances? For starters, former finances secretary Benjamin Diokno was accused by the late consultant Rolando Andaya of inserting at the very least P2.8 billion of infrastructure budgets that can profit Casiguran, Sorsogon. Why Casiguran? Its mayor then was the husband of the mother-in-law of Diokno’s daughter, whereas Sorsogon’s vice governor then was the mother-in-law of Diokno’s daughter.

This and different finances insertions have been allegedly facilitated by Amenah Pangandaman, Diokno’s closest finances undersecretary, who was mentioned to have given a thumb drive to a Division of Public Works and Highways (DPWH) workers member containing an inventory of P51 billion value of infrastructure initiatives. Whole insertions that 12 months allegedly reached P75 billion.

Eerily, this brings to thoughts the latest and alleged tug-of-war of information between Consultant Leandro Leviste and the late public works undersecretary Catalina Cabral. Cabral was mentioned to own an inventory of initiatives which might be “allocable” to lawmakers, and Consultant Leviste allegedly snatched these information from Cabral’s workplace again in September 2025. Leviste mentioned such information got to him, not stolen. At any charge, it’s fairly clear that the finances of the Division of Public Works and Highways is a vital entry level of politicians’ pork, then and now.

Going again to 2019, Diokno vehemently denied the allegations levelled in opposition to him by Andaya. However not lengthy after, Diokno stepped down and moved on to turn into the governor of the Bangko Sentral ng Pilipinas (a golden parachute). He introduced with him Pangandaman to the BSP. By the way, each would determine prominently within the early Cupboard of President Marcos Jr.: in 2022, Diokno returned as finance secretary, whereas Pangandaman turned finances secretary — till she resigned lately, in November 2025, amid the flood management scandal.

Former Home speaker Gloria Macapagal-Arroyo additionally inserted tons of pork within the 2019 finances for her personal legislative district, amounting to P2.4 billion. Reacting to this, Senator Leila de Lima, who was detained at Camp Crame on the behest of former president Rodrigo Duterte, mentioned in a dispatch, “It’s scandalous and shameless, however hardly a shock. We don’t count on something much less from Speaker Arroyo who, throughout her rule as President, was identified for placing self-interest above public service.”

What’s extra, even after the 2019 finances bicameral convention committee or bicam, the Home managed to mess around with the Division of Well being’s finances, particularly its Well being Amenities Enhancement Program or HFEP. That is extremely anomalous, as a result of Congress ought to stay with the draft invoice accepted by the bicam. However the Home allegedly distributed the P4.5 billion allotted to the Home of Representatives, chopping up that pork finances and allocating it amongst its members. Supposedly, a lot of that fund went to Arroyo’s allies (supporters of her Home management), whereas a a lot smaller quantity went to non-allies.

In complete, as a lot as P75 billion of initiatives have been realigned after the bicam below the Native Infrastructure Program.

This maneuver led to a finances deadlock, led by Senator Panfilo Lacson, a identified fiscalizer. The nation entered 2019 with no new finances, and in March 2019 president Duterte met with congressional leaders to repair the impasse. It was solely later that month that the Senate submitted the enrolled invoice, albeit with “robust reservations.” 

In mid-April 2019, Duterte lastly signed the finances, actually unceremoniously (journalists have been solely knowledgeable by textual content message that Duterte had already signed the invoice). However Duterte ended up vetoing as a lot as P95.3 billion value of DPWH initiatives that have been “not a part of [his] precedence initiatives,” and assigned some initiatives for “conditional implementation.” These embody “the allowance and advantages of lecturers and creation of educating positions, development of evacuation facilities, funding for foreign-assisted initiatives, revolving fund, and lump-sum appropriations for capital outlays, in addition to monetary help to native authorities models and funding necessities of our overseas service.”

What now?

Quick-forward to 2026, pork hobbles the finances as soon as extra, particularly pork lodged below the DPWH.

Home lawmakers tried their darndest to insert initiatives below the DPWH, not below flood management however primarily for farm-to-market roads (now to be overseen by the Division of Agriculture) and the HFEP (which additionally performs a job now — an echo to the 2019 controversy).

In a extremely irregular transfer, DPWH Secretary Vince Dizon additionally appeared earlier than the bicam to foyer the restoration of P54 billion value of funding. This intervention by the chief created an deadlock and the Senate stood its floor, resulting in a full stoppage of the bicam proceedings. Ultimately, the Senate allowed a partial restoration of the DPWH finances.

The ball is now with President Marcos, and as I write this the Palace is scrutinizing the enrolled finances invoice for 2026. What ought to he do?

If he’s actually dedicated to point out the those that he’s reforming the finances (the foundation of all evil, so to talk), he may take a leaf from what former president Rodrigo Duterte did in 2019, and veto tons of useless pork initiatives that they’re not a part of his priorities.

Again in December 2024, Marcos vetoed P194 billion, P168.240 billion of which have been unprogrammed funds and the remainder (P26.065 billion) have been DPWH initiatives. For the 2026 finances, he’ll almost definitely veto a portion of the P243-billion unprogrammed funds as effectively. However it will do nothing, actually, as a result of unprogrammed appropriations can’t be spent on until there are extra revenues or new loans.

If Marcos is de facto honest, he’ll push for reforms to take away unprogrammed funds completely within the 2027 finances and past. Instances have been filed earlier than the Supreme Court docket to rule unprogrammed funds unconstitutional (due to the best way they’ve been abused within the finances course of). However Marcos will do effectively to maneuver forward of this Supreme Court docket choice and push Congress to move a legislation banning unprogrammed funds without end.

However I doubt it will occur. If he have been actually honest, he would’ve carried out so years in the past, and cease associated perversions just like the plundering of the coffers of PhilHealth and the Philippine Deposit Insurance coverage Company. Additionally, Marcos is aware of that bringing dwelling pork initiatives is the first recreation performed within the Home of Representatives, and his kin benefitted from this scheme of late. In truth, a report of the Philippine Middle for Investigative Journalism (PCIJ) discovered {that a} huge bulk of “allocable” initiatives went to Marcos’ son Sandro and cousin Martin Romualdez.

All in all, the 2026 finances is extra of the identical. They eliminated flood management allocations however made up for it in different methods. However reality be advised, I’m not likely disenchanted: within the first place, I didn’t have my hopes up that important reforms will happen. – Rappler.com

Dr. JC Punongbayan is an assistant professor on the UP Faculty of Economics and the creator of False Nostalgia: The Marcos “Golden Age” Myths and Methods to Debunk Them. In 2024, he obtained The Excellent Younger Males (TOYM) Award for economics. Comply with him on Instagram (@jcpunongbayan).