Budgeting Public Funds: Why the People Must Take the Lead

The Department of Budget and Management has proposed a ₱6.793 trillion national budget for 2026—the biggest in Philippine history. Each year, the numbers climb: ₱6.326 trillion in 2025, ₱5.768 trillion in 2024, and ₱5.268 trillion in 2023. But as the pie gets bigger, the question remains: who benefits?

The House Committee on Appropriations will open deliberations with a briefing from the Development Budget Coordination Committee (DBCC)—composed of Budget Secretary Amenah Pangandaman, Economic Planning Secretary Arsenio Balisacan Jr., Finance Secretary Ralph Recto, and BSP Governor Eli Remolona Jr.—on the macroeconomic assumptions behind the 2026 National Expenditure Program (NEP).

For 2026, education receives the largest allocation at ₱1.224 trillion, with ₱928.5 billion allocated to the Department of Education. Public works follows with ₱881.3 billion, a perennial magnet for controversy given the DPWH’s reputation as a “gold mine” of corruption. Health receives ₱320.5 billion, and defense ₱299.3 billion. Budget hearings will open on August 25, with lawmakers promising “inclusivity” and “transparency.” Fine words, but in practice, citizens rarely have an authentic voice.

Senator Panfilo Lacson has repeatedly exposed how public works projects are bled dry before they even break ground. He described how funds are eaten away by “kaltas”: 8–9% to DPWH, 2–3% to district offices, 5–6% to bids and awards committees, 0.5–1% to the Commission on Audit, plus another 5–6% as “royalty” for local politicians. He called it the “floodgates of corruption.” A ₱100 million flood control project ends up with only ₱82 million for actual construction—and Lacson warns that, in the end, only about 40% of flood control funds truly reach implementation.

These terms—lagay, SOP, parking fee, royalty—are familiar to many Filipinos. Back in 2010, I helped publish The Corruptionary, a glossary of corruption terms compiled by CenPEG. Sadly, that glossary remains just as relevant today. CenPEG, a policy study think tank, is now calling for a people’s audit, or citizen-led monitoring of how the government is spending the funds. It is crucial, but the fight must begin much earlier—while Congress is still drafting the budget. Citizens must be part of deciding priorities, not just auditing leftovers. Imagine real people’s budgeting: communities and local groups choosing whether their town needs a health center more than a basketball court, or farm-to-market roads instead of ornamental plazas.

It is how democratic governance should work: Plan → Allocate → Implement → Audit → Feedback → Improve. Yet citizen involvement remains weak. Laws and guidelines are flimsy, communities often lack the skills to analyze dense budget documents, some officials resist scrutiny, and the poor and marginalized—farmers, fisherfolk, the urban poor—are often excluded.

How do we change this? By taking concrete steps:

• Institutionalize participatory budgeting, not as an experiment but as policy.

• Equip citizens and NGOs with budget literacy skills.

• Link grassroots monitors with oversight bodies like COA and DBM.

• Use digital platforms to make budget data accessible and understandable.

• Ensure the marginalized are not token participants but real decision-makers.

And where should the money go? The balance must be between urgent human needs and long-term investments. If I had a say, which I do not have, priorities would be:

• Education, health, social protection – 50%

• Agriculture, fisheries, food security – 35%

• Climate-resilient infrastructure – roads, ports, railways, and disaster reduction

• Science, technology, innovation – to prepare for the future economy

• Good governance, peace, order – the backbone of growth

• Jobs and livelihoods – MSMEs, social enterprises, tourism, manufacturing, digital services

• OFWs – reintegration and welfare

The budget is not just a spreadsheet. It is a reflection of our values. Every peso lost to corruption is stolen from classrooms, hospitals, farmers, and workers.

It is not just about transparency. It is about trust. The national budget should balance immediate needs (health, education, social protection) with long-term investments (infrastructure, innovation, resilience). Above all, it must be shielded from corruption. If the budget is truly the “people’s budget,” then the people must take the lead in shaping it. Only then can public spending stop being a feeding trough for corruption and instead become a tool for genuine, inclusive, and lasting development.

Institutionalizing people’s participation in budget planning and people’s audit closes the loop between government and citizens. Together, they build a governance system that is transparent, accountable, and truly responsive to the people’s needs.