Malacanang on Wednesday said it will not push through with the scheduled signing of the General Appropriations Act on December 20 after an ex-finance official called the spending plan “the most corrupt in Philippine history.”

In a statement, Executive Secretary Lucas Bersamin said the December 20 signing of the GAA 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.”

He said the review will be led by President Ferdinand Marcos Jr. in consultation with the heads of major departments.

“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,” Bersamin said.

Several lawmakers have raised concerns about budget cuts in the proposed GAA, including a P12 billion reduction in the Department of Education’s 2025 budget and the removal of the subsidy for the Philippine Health Insurance Corp.

Former Senator Panfilo Lacson said the combined budget of the agencies in charge of education--Deped, Commission on Higher Education, Technical Education and Skills Development Authority and State Universities and Colleges is still less than the Department of Public Works and Highways.

"Even if we consolidate the budgets of the entire education sector, the total amount will still be lower compared to the budget of DPWH.  Thus - P737B (DepEd) P122B ( SUCS) P21B TESDA  P33B (CHED) -  for an overall total of P912B compared to the  P1.113T budget of DPWH after the bicameral conference," Lacson said.

Senate Minority Leader Koko Pimentel said infrastructure projects getting more budget priority than the education sector in the proposed 2025 budget could be a constitutional issue.

He also warned that unprogrammed appropriations in the bicam report is over P531 billion for 2025, a huge jump from the National Expenditure Program level of over P158 billion.

President Marcos Jr. earlier vowed to restore the P10 billion cut in the DepEd budget, which was intended for the agency's computerization program.

Marcos Jr. vows to work on restoring Deped budget cut

Economist and former finance undersecretary Cielo Magno earlier said PhilHealth’s alleged failure to use allocated funds should have led to a leadership change and not withhold funding that could be used to expand coverage and member benefits.

WRAP: Cuts to DepEd, PhilHealth as 2025 budget bill nears finish line

She also criticized a P50 billion cut for the conditional cash transfer program, which helps the country’s poorest families. 

Magno noted the Department of Public Works and Highways, which did not request any additional budget, was given an additional P289 billion. The Senate budget was also increased by P1 billion while the House of Representatives received an additional P18.8 billion.

“Hindi lang PhilHealth ang problema ng 2025 budget. Ang problema ay ‘yung kabuuan ng budget at ano ang kinakatawan nita. Naniniwala po tayo na ito na ata ang pinaka-corrupt na budget sa history ng Pilipinas,” she said. 

Senate President Francis Escudero and Senate Finance Committee Chair Grace Poe, meanwhile, said they respect the decision of the Executive not to push through with the signing of the 2025 National Budget this week to allow the President to review and veto its provisions.

"It’s part of the legislative process and the system of checks and balances in our Constitution. The Executive is well within its rights and prerogatives to review, study and make line item vetoes - as is usually done every year with the General Appropriations Bill - especially given its length, complexity and detail,” Escudero said.

"This 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. 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,” Poe added.