MANILA, Philippines – Malacañang has postponed the scheduled signing of the General Appropriations Act (GAA) on Friday, December 20, to give President Ferdinand Marcos Jr. more time to review the national budget amid criticisms over some items.

“The scheduled signing of the General Appropriations Act (GAA) on December 20 will not push through to allow more time for a rigorous and exhaustive review of a measure that will determine the course of the nation for the next year,” Executive Secretary Lucas Bersamin said in a statement early Wednesday, December 18.

“The ongoing assessment is being led by the President himself, in consultation with the heads of major departments,” he added.

Bersamin also confirmed that Marcos will veto some provisions of the GAA after several groups questioned the shortfalls in the Department of Education (DepEd) and other flaws in the budget.

“While we cannot yet announce the date of the signing, we can now confirm that certain items and provisions of the national budget bill will be vetoed in the interest of public welfare, to conform with the fiscal program, and in compliance with laws,” he said.

Senate finance committee chair Grace Poe said that Palace decision is a “sign of a healthy democracy.”

“We have to support the checks and balances of our budgetary process. The President has the authority to assess the budget and approve or veto the proposed GAA,” Poe said in a statement.

“I believe his economic managers are giving the President the best advice possible given the situation. The GAA is the most important piece of legislation that can determine our economic stability and our GDP growth in 2025,” she added.

Work in progress

In a brief interview with reporters on Monday, December 16, Marcos said the education budget as approved by the bicameral conference committee was contrary to his administration’s policies. 

He said he would continue to find a way to address the shortfall on some items in the DepEd budget, including the P10 billion cut in the agency’s computerization program for 2025. 

“We’re working on it to make sure that we will restore it. I do not want to line-item veto anything because that just gets in the way. So we’re still talking about it and trying to find a way,” Marcos had said.

He said the executive department will also look into the Department of Public Works and Highways (DPWH) budget, to see if the “insertions” are really necessary but added that Marcos public works will still get a big chunk of the national budget given his administration’s infrastructure priorities.

He did not address criticisms on the zero subsidy for PhilHealth.

The President said the budget will still be signed before Christmas. 

Health Secretary Ted Herbosa, in a press conference on Tuesday, said the state health insurer will still be able to provide all the benefits to its members despite the zero subsidy in the 2025 budget.

“Even without the subsidy, we continue to provide all the health benefits in this population, our indirect [contributors] — the indigent, senior citizens, PWDs (persons with disabilities),” he added in a mix of English and Filipino. “We will still cover their benefits, also they will still be given no-balance-billing privileges.”

PhilHealth’s P284 billion budget for 2025 is 10% higher than the P259 billion it got in 2024. 

“PhilHealth has a lot of money, well over the reserve fund ceiling allowed by law. This surplus is a result of underspending for benefits thorugh the years, which is why Filipino families pay high out of pocket,” Herbosa said.

Anti-people budget?

Various civic, labor, and medical groups have assailed the lack of subsidy for PhilHealth, noting that it violates the six tax law which earmarks 80% of 50% of excise tax collections from tobacco and sweetened beverages to PhilHealth for the implementation of the Universal Health Care (UHC) Act. 

“The 2025 budget is the most corrupt budget in history. Not only is Philhealth defunded, but the fund was diverted to patronage-driven programs like the Ayuda sa Kapos ang Kita (AKAP) program and the Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP) program, undermining institutionalized social programs that are meant to ease the burdens of the Filipino people. The 2025 budget is clearly anti-people,” said former finance undersecretary Cielo Magno.

Dr. Hector Santos, president of the Philippine Medical Association (PMA), claimed that doctors are threatening to disengage with PhilHealth due to the zero-funding, citing their worries that the delayed payments from PhilHealth may become even more prolonged. 

“The zero budget of PhilHealth may prompt healthcare providers to disengage with the state insurer which may worsen the health burden among Filipinos. It is a serious threat,” said Santos.

In a joint statement on Monday, PMA and several civic groups and leaders said: “We believe that it is unconstitutional for Congress to use the appropriations law as a vehicle for changing the Sin Tax Laws and Universal Healthcare Act. Congress is inserting these riders, amending, and weakening laws that guarantee our health, and doing so through the backdoor.”

“They are using the appropriations act to make substantive changes to the laws providing for our health protection and supporting our social health insurance fund, without sufficient notice to our citizens and absent the public scrutiny and debate demanded by our Constitution,” they added.

Aside from the PMA, the Public Services Labor Independent Confederation Foundation Incorporated, Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), and civic leaders such as Magno and Dr. Minguita Padilla were also signatories to the joint statement released by advocacy group Action for Economic Reforms. – Rappler.com