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Wednesday, August 12, 2026 Vol. 21 No. 302
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OVERFLOWING CONCERN Residential areas near the Tullahan River are seen from the air in Quezon City on Tuesday, August 11, 2026, with the waterway snaking through communities as La Mesa Dam reached 80.20 meters, exceeding its 80.15-meter overflow elevation, according to PAGASA. The
FLOOD-CONTROL FUNDS RESTORED IN ’27 BUDGET
Tullahan River begins at the La Mesa reservoir and runs through Quezon City, Caloocan, Valenzuela, Malabon and Navotas before emptying into Manila Bay. When La Mesa reaches its overflow elevation, water spills into the river, posing a flooding threat to low-lying communities along its course. The rise comes amid continuing rains associated with the enhanced southwest monsoon, or “habagat.” NONOY LACZA
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By Jovee Marie N. Dela Cruz
HE government has restored funding for flood-control projects in the proposed 2027 national budget, allocating P107.4 billion to continue, repair and improve existing infrastructure amid persistent flooding during the rainy season.
The restoration of the funding, the massive misuse of which sparked thorough reforms and stalled infrastructure spending that in turn reduced growth, comes at about a year after the 2025 State of the Nation Address where President Ferdinand Marcos Jr. first assailed massive corruption in flood-control projects. Its restoration is hoped to help revive economic activity and a lack-
luster growth, reported at only 2.3 percent in the second quarter. Acting Budget Secretary Kim Robert De Leon said the condition of unfinished projects and the continuing operational needs of flood-control facilities were among the major considerations in restoring the funding under the 2027 National Expenditure Program (NEP). See “Funds,” A2
’27 BUDGET MEANT TO HURDLE GEOPOLITICS, ECONOMIC WOES By Samuel P. Medenilla
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RESIDENT Ferdinand Marcos Jr. said the government is bracing for extended “geopolitical tensions and economic challenges” in its proposed P7.2-trillion 2027 national budget to allow the country to sustain its economic growth next year by prioritizing “investments in the Filipino people.” The chief executive made the commitment in his 51-page President’s Budget Message with the 2027 National Expenditure Program, which was submitted by the Department of Budget and
Management (DBM) to the House of Representatives on Tuesday. “Amid continuing global uncertainties—including geopolitical tensions, persistent inflationary pressures, and volatile energy prices—we remain steadfast in pursuing growth that is both resilient and fiscally responsible,” Marcos said. He said the budget will allow the government to meet its Philippine Development Plan (PDP) 2023–2028 and its longterm vision under Ambisyon Natin 2040, while reducing unnecessary expenditures and See “Geopolitics,” A2
NG debt seen to swell to ₧21.48T by end-2027 By Reine Juvierre S. Alberto
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HE national government’s outstanding debt is projected to swell to P21.479 trillion by the end of 2027, as a persistently weak peso, growing financing requirements and repayment of maturing loans add to the debt burden. The expected debt is seen to increase by 8.67 percent from the P19.765 trillion projected by the end of this year, based on the Budget of Expenditures and Sources of Financing released after the turnover of the 2027 proposed budget to the House of Representatives on Tuesday. Domestic debt is estimated at P14.282 trillion, while foreign obligations are seen to reach P7.197 trillion, data showed. The projected debt levels took into consid-
eration the peso at the P62 level against the US dollar. The government’s outstanding debt climbed to a new record high of P19.065 trillion as of end-June, or 66 percent of the gross domestic product (GDP) in the second quarter. Budget Assistant Secretary Romeo Matthew T. Balanquit told reporters after the turnover that the weaker peso increased the value of foreign-currency loans, many of which were contracted during the pandemic when the peso was around P46.60 to the dollar. “[The] peso weakened by 20 percent. So, that actually allows us to incur higher costs,” Balanquit said. Compounding this is the government “becoming less aggressive” and accommodating a wider budget deficit, Balanquit added, pointing to geopolitical tensions and the United
States’s tariff war. The deficit is pegged at P1.695 trillion in 2027, or 5.1 percent of the GDP, and will widen to P1.722 trillion in 2028 before contracting in 2029 and 2030. “If deficit has to increase a bit, then we have to finance [it] by borrowings,” Balanquit said.
Govt to borrow P3.3T in 2027
THE government programmed its gross borrowings for next year at P3.304 trillion, higher by 20.85 percent than the revised P2.733-trillion financing target this year. About 72 percent of the amount, or P2.389 trillion, would be sourced locally through the auction of government securities, such as Treasury bills and bonds. This increased by 24.53 percent from this year’s P1.918 trillion program.
The remaining P925.12 billion, up by 12.19 percent year-on-year, will come from foreign financiers. Of the amount, P549 billion are program loans and project loans extended by multilateral lenders, while P365.982 billion will be raised from the international bond market. “The problem is that compared to pandemic times, the old loans were actually contracted at a lower interest rate. Now, they are maturing,” Balanquit said. “So, we have to refinance using new loans. But worse, because this will be at a higher interest rate now.” The government calculated its debt service expenditures at a total of P2.704 trillion for next year, 32.23 percent higher than the P2.045 trillion allocated this year. About P2.148 trillion will be spent to pay for See “Debt,” A2
Congress asked: Keep ’27 UA level at ₧112B By Reine Juvierre S. Alberto
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ITH unprogrammed appropriations now making up only 1.5 percent of the 2027 National Expenditure Program (NEP), Budget Secretary Kim Robert C. De Leon wants Congress to preserve that level as budget deliberations begin. “We would, of course, prefer that the UA level proposed in the NEP be maintained, as this reflects the position of the Executive. It is also the result of our extensive preparations for the budget,” De Leon told BusinessMirror in a message.
“At the same time, we respect the wisdom of Congress and its constitutional power of the purse. We will work closely with our legislators as the budget goes through deliberations,” he added. De Leon said at a press briefing after the turnover of the NEP to the House of Representatives on Tuesday that the proposed P111.984-billion unprogrammed appropriations is the lowest in nominal amounts since 2019, worth P197.135 billion. Its share in the NEP is also the smallest since 1991. See “UA level,” A7
IMPEACHMENT WATCH
COA AUDITOR ON THE STAND Commission on Audit Intelligence and Confidential Funds
Audit Office (COA-ICFAO) Supervising Auditor Xylene Mae del Campo answers questions from prosecution lawyer Lorna Kapunan during the 14th day of the impeachment trial of Vice President Sara Duterte at the Senate in Pasay City on Tuesday, August 11, 2026. Del Campo testified that Duterte and two Office of the Vice President officials were held liable for the P73.287 million in confidential-fund disbursements disallowed by COA. She said the OVP’s submissions failed to provide sufficient proof that information-gathering and surveillance activities funded by the cash advances had been successful, as required under government rules. The disallowed transactions were covered by a Notice of Disallowance involving the OVP’s 2022 confidential fund. Story on A3 Nation. ROY DOMINGO/SPPA POOL
PESO EXCHANGE RATES n US 60.7750 n JAPAN 0.3817 n UK 82.1009 n HK 7.7471 n CHINA 9.0086 n SINGAPORE 47.4693 n AUSTRALIA 42.8646 n EU 70.1587 n KOREA 0.0428 n SAUDI ARABIA 16.1860 Source: BSP (August 11, 2026)