House set to tweak budget process By Jovee Marie N. Dela Cruz
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WILDFIRES, EXTREME HEAT WAVES SWEEP EUROPE, FORCING EVACUATIONS AND SPARKING RED ALERTS
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HE House of Representatives on Wednesday received the P6.793-trillion 2026 National Expenditure Program (NEP) from the Department of Budget and Management (DBM), with the leadership of the lower chamber announcing at least five reforms in the crafting and execution of next year’s national budget. President Ferdinand Marcos Jr. on Wednesday called on lawmak-
ers to “swiftly enact” the proposed P6.793-trillion 2026 national budget, as Congress adjusted its legislative calendar to allow more thorough deliberations. “I urge the honorable members of Congress to swiftly enact this budget. Let us work together to realize the full potential of our nation, nurture future-ready generations, and fulfill our dream of a Bagong Pilipinas,” Marcos said in the budget message. Speaker Ferdinand Martin G. Romualdez said during the ceremonial turnover, which was wit-
nessed by House leaders and DBM officials, that the budget process must be “transparent, inclusive, and accountable to the people.” “A budget is not just a spending plan—it is a mirror of our priorities and a measure of our accountability to the people. And because this is the people’s money, the process of crafting it must be transparent, inclusive, and worthy of public trust,” he said. “That is why, beginning this year, the House will implement important reforms,” he added. Romualdez outlined several re-
forms the House of Representatives will implement starting this year to promote transparency and public participation in the budget process. These include abolishing the “small committee” that previously consolidated institutional amendments after budget approval to ensure all changes are openly deliberated; opening House-Senate conference committee meetings on the budget to the public and the media; and inviting civil society groups, people’s organizations, and the private sector to actively See “House,” A2
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Thursday, August 14, 2025 Vol. 20 No. 305
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By Reine Juvierre S. Alberto
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HE national government’s outstanding debt is seen to expand by nearly 10 percent and breach the P19-trillion mark by the end of 2026. Based on the Budget of Expenditures and Sources of Financing (BESF) for fiscal year 2026, the outstanding debt is expected to continue increasing at a gradual and steady pace. The debt level is projected to increase by 8.15 percent to P17.359 trillion by the end of this year and will climb by 9.77 percent to reach P19.057 trillion by end-2026. Of next year’s outstanding debt, domestic debt will reach P13.281 trillion, while external debt will grow to P5.775 trillion. “Admittedly, our interest payments are increasing because we borrowed a lot during the pandemic. Our economy was closed,” Budget Secretary Amenah F. Pangandaman told reporters on the sidelines of the ceremonial turnover of the National Expenditure Program (NEP) for fiscal year 2026 on Wednesday. Currently, the government’s outstanding debt stands at a record-high of P17.27 trillion as of endJune 2025. The country’s debt as a percentage of gross domestic product (GDP), jumped to 63.1 percent after the economy grew by 5.5 percent in the second quarter of this year. The debt-to-GDP ratio is will eventually ease to 61.3 percent by the end of 2025, but will again slightly increase to 61.8 percent by end-2026, until it improves to 60.3 percent by the end-2028. Expectations of slower economic growth, weighed down by the United States’ tariff issues, will push See “Govt,” A2
MASTERPIECE IN THE MAKING Local tourists take in the golden-hour view over Laguna de Bay and the Metro Manila skyline from an upland viewpoint in Angono, Rizal—the hometown of National Artist for Painting Carlos “Botong” Francisco. Celebrated for immortalizing Philippine history and rural life in his murals, Botong’s legacy continues to inspire the town’s creative spirit, from its vibrant streets to its stunning hilltop sunsets. BERNARD TESTA
‘ARTIFICIAL INTELLIGENCE CAN FORTIFY SMALL, MEDIUM FIRMS’ By Bless Aubrey Ogerio
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LOILO City—Micro, small and medium enterprises (MSMEs) and other lateadopting organizations can harness artificial intelligence (AI) to hurdle traditional growth barriers and compete with larger firms, startup leaders said. Speaking on the third day of the Department of Science and Technology’s (DOST) AI Festival, Stratpoint Technologies chief executive officer Mary Rose dela Cruz said AI adoption has been accelerating worldwide.
She noted that the mass adoption of mobile technology in 2010 took about a decade, while AI, propelled by platforms such as ChatGPT, has shortened that curve to roughly three years. “You can’t just take small steps. You need a big leap, a big step,” dela Cruz said in her plenary talk. “Leapfrogging means skipping incremental steps and jumping directly to advanced solutions… AI enables late adopters to bypass years of catch-up work.” Her “leapfrog playbook” outlines five steps for organizations: reimagine customer See “Artificial,” A2
DBM to solons: Stick to expenditure plan T HERE should be no room for realignments in next year’s record P6.793-trillion proposed national budget, according to the Department of Budget and Management (DBM), amid criticisms that this year’s budget is the “most corrupt” due to pork. Speaking to reporters after the ceremonial turnover of the National Expenditure Program (NEP) for fiscal year 2026, Budget Secretary Amenah F. Pangandaman voiced her wish that lawmakers refrain from making any realignment to next year’s budget. “As much as possible, we want them to stick to the budget,” Pangandaman said, adding that she still respects Congress’s wisdom, as they still have the authority to ap-
prove the budget. Next year’s record P6.793-trillion national budget is higher by 7.4 percent than this year’s P6.326trillion budget. After receiving P10.101 trillion in agency budget proposals, only 67.25 percent were accepted, considering the government’s available fiscal space. “This ensures that even as we strengthen the economy and strive to achieve the nation’s full potential, we remain committed to reducing the budget deficit,” Pangandaman said in her speech during the turnover ceremony. Aside from ensuring fiscal prudence, the budget is guarded by President Ferdinand R. Marcos Jr. personally sat down with each government agency several times
to ask their concerns and needs and planned with them, according to Pangandaman. In his recent State of the Nation Address, Marcos declared that he will not tolerate any provisions in the 2026 national budget that are not aligned with his administration’s priorities. This year’s budget has been tagged by critics as the “most corrupt” in recent years, after insertions by lawmakers and cuts in priority sectors have been made. Several critics argued that education was denied the highest budget allocation, while the Philippine Health Insurance Corporation was denied its annual subsidy. Unprogrammed appropriations, which can only be used when there are excess revenue collections, new
revenue sources or through approved loans for foreign-assisted projects, are used and bloated by Congress to conceal pork barrel, according to public finance analyst Zyza Suzara. To prevent this, unprogrammed appropriations for next year are proposed at P249.9 billion, down by 31.2 percent from this year’s P363.42 billion, based on the 2025 NEP. “Our very hardworking officials, bureaus, services, and offices at the DBM, together with all the departments and agencies of the Executive branch, worked hand-in-hand to ensure the fulfillment of the needs and aspirations of the Filipino people,” Pangandaman added. Reine Juvierre S. Alberto
PESO EXCHANGE RATES n US 57.1620 n JAPAN 0.3866 n UK 77.1858 n HK 7.2831 n CHINA 7.9581 n SINGAPORE 44.5604 n AUSTRALIA 37.2982 n EU 66.7366 n KOREA 0.0413 n SAUDI ARABIA 15.2326 Source: BSP (August 13, 2025)