Budget insertions lack due diligence—report
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FINAL SESSION STRETCH Senators return for the resumption of the 19th Congress’ regular session on Monday, June 2, 2025. With the current Congress nearing its end, the Joint Foreign Chambers of Commerce (JFC) urged lawmakers to fast-track three priority reform bills seen as critical to boosting the country’s competitiveness in the Asean region. These include the Konektadong Pinoy Act, the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act, and amendments to the Investor’s Lease Act. ROY DOMINGO
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ONGRESSIONAL insertions made on the national budget could lead to financing poorly prepared projects, according to the Philippine Institute for Development Studies (PIDS), government’s own think tank. In a research paper, PIDS Senior Research Fellow Adoracion M. Navarro and former research analyst Jokkaz S. Latigar said congressional insertions are replacement projects that are brought in through “political intervention” when the budget is being finalized. Unfortunately, Navarro and Latigar said, these projects have not gone through due diligence such as thorough planning and consultation with stakeholders.
“The issue regarding the ‘For Later Release’ funds is complex and has deep political economy ramifications. It seems to be a battle of wills on project implementation between two major political forces,” Navarro and Latigar said. “On one end are legislators who always find ways to insert new or expanded line items into the budget. On the other end is the President, who can resort to postGAA [General Appropriations Act] procedures that enable him to approve/reject the release of funds related to every Congressional insertion,” they added. They said these congressional insertions are composed largely of road transport projects. Since these
did not go through due diligence, some become unfeasible projects that can create a bottleneck and delay project implementation. “This is one reason for the existence of the ‘for later release’ funds category in the government budget. Unless a project has undergone proper evaluation [e.g., project feasibility, documentation, or clearances], the DBM [Department of Budget and Management] cannot release the funds immediately. This way, the government can mitigate the potential misuse of allocations,” the authors said. In order to address these insertions, the government needs reform champions and efforts to See “Budget,” A2
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Tuesday, June 3, 2025 Vol. 20 No. 233
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Cai U. Ordinario @caiordinario
HE country’s manufacturing sector was “broadly stagnating” as the Philippines Purchasing Managers Index (PMI) declined in May, according to S&P Global Market Intelligence. The PMI index score of the country fell to 50.1 in May from 53 in April. It can be noted that 50 is the PMI threshold for an “overall increase” in factory performance. “The latest PMI data by S&P Global indicated a setback to growth momentum built in April, with May recording a broadly stagnating picture in the Filipino manufacturing sector,” the report stated. “Output fell into contraction territory while new order growth waned, with the downturn in demand from foreign markets also weighing on total new sales,” it added. The report noted that there was a “fresh decline” in production in May and marked the second contraction in the past three months. Manufacturers also encountered
problems with foreign markets. Maryam Baluch, Economist at S&P Global Market Intelligence, said there was an increase in new orders but the growth was at a slower pace. Filipino manufacturers, the report stated, observed a stronger decline in new export orders, following broadly steady export sales in March and April. Baluch also said that because of this, there was a decline in employment, and inventories as well as finished goods. The report indicated that the rate of job shedding, albeit “modest,” was the strongest in 11 months. Surveyed respondents linked the downturn to voluntary resignations and the non-replacement of those roles. See “Factory,” A2
SOUNDING OFF ON NCAP Members of transport
PINOY WORKERS STRESSED BY FINANCIAL, JOB WOES–REPORT By Reine Juvierre S. Alberto
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@reine_alberto
INANCIAL instability, job insecurity and uncertainty about the future are fueling higher levels of stress, anxiety and depression among working-class Filipinos compared to the global average, according to a study by life insurer AXA. AXA’s Mind Health Report revealed that nearly seven in 10 Filipinos suffer from at least mild forms of anxiety, stress or depression, among the highest rates globally. Economic pressures were found to be the primary drivers of this mental health crisis, with 76 percent of Filipinos citing financial instability and employment worries as major stressors, far above the global average of 53 percent. Beyond money matters, the
feeling of loneliness and social isolation at 58 percent versus 42 percent globally, as well as uncertainty about the future at 70 percent compared to the global average of 53 percent, also weigh heavily on Filipinos’ well-being. The report also found that exposure to negative news at 55 percent versus 45 percent and anxiety about climate change (57 percent versus 38 percent) affect Filipinos’ mental health. Moreover, Filipinos aged 18 to 34 are more likely than other generations to suffer from severe mental health symptoms and are diagnosed with conditions at higher rates than their global peers, according to the report. “Workplaces play a significant role in both stress and support. The data points to an opportunity for organizations to be part See “Pinoy,” A2
group PISTON stage a noise barrage along Roxas Boulevard Service Road in Pasay City to protest rising oil prices and the implementation of the No Contact Apprehension Policy (NCAP). Meanwhile, at a press conference, LTO Executive Director Greg Pua Jr. and MMDA Special Operations Head Gabriel Go show evidence of motorists deliberately covering their plates to evade NCAP, warning that while they may avoid detection, legal penalties still await violators. ROY DOMINGO and NONOY LACZA
Edsa Rebuild project cost seen going down By Lorenz S. Marasigan
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EPARTMENT of Transportation (DOTr) Secretary Vince Dizon said on Monday he expects the cost of the Edsa Rebuild Project—initially set at around P15 billion—to go down following Malacañang’s directive to complete the overhaul in just six months instead of two years. In a press briefing, Dizon said implementing the project using “non-conventional ways to do this faster” will also result in it being more affordable. “What the President said is very clear: we need to find a better way that is shorter and obviously if it’s
shorter it will be cheaper. But as for the details, I will have to defer to the DPWH [Department of Public Works and Highways],” he said. President Ferdinand Marcos Jr. has ordered all concerned agencies to “go back to the drawing board” and find—in a month—faster, less disruptive, and ultimately cheaper alternatives to the originally proposed P15-billion project originally scheduled for completion in 2026. “It shows the President’s resolve in not only rebuilding Edsa, but in making sure that the inconvenience of the motoring public and to the commuters is minimized using the most advanced technology out there,” Dizon said.
However, he expressed doubts that the one-month study period given by the President will be sufficient to completely overhaul the project’s implementation plan. “Whether we can finalize everything in one month, I’m not sure— but what’s certain is the President will not allow a two-year timeline. He wants this done in six months,” he said. “We cannot do this using the conventional way because that will take too long.” Originally, the government will implement the project under a phased approach, starting with the rehabilitation of the southbound and northbound Edsa sections from Pasay to Shaw Boulevard.
This segment is expected to be completed by the end of the year, after which works will proceed to the remaining sections. Dizon noted that the DOTr will continue to augment Metro Rail Transit (MRT) Line 3 and the Edsa Busway operations regardless of the revised construction timeline. Early deployments and capacity boosts are being lined up to ease the impact of the eventual road works on commuters. The Edsa Rebuild, which aims to overhaul the capital’s busiest thoroughfare, has faced growing public opposition due to fears of prolonged gridlock and economic losses during its construction.
PESO EXCHANGE RATES n US 55.6150 n JAPAN 0.3869 n UK 74.8578 n HK 7.0927 n CHINA 7.7388 n SINGAPORE 43.0890 n AUSTRALIA 35.7604 n EU 63.1508 n KOREA 0.0403 n SAUDI ARABIA 14.8291 Source: BSP (June 2, 2025)