WRAP: Cuts to DepEd, PhilHealth as 2025 budget bill nears finish line | ABS-CBN

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

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

Jonathan de Santos,

ABS-CBN News

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Senators and House members pose for pictures after the bicameral conference committee adjourns. RG Cruz, ABS-CBN NewsSenators and House members pose for pictures after the bicameral conference committee adjourns. RG Cruz, ABS-CBN News

MANILA — The Bicameral Conference Committee submitted its version of the proposed national budget for 2025 this week, in time for submission to President Ferdinand Marcos Jr., who is expected to sign it into law before Christmas.

Failure to enact it before the year ends would mean a reenacted budget, leaving new programs and projects unfunded until a new budget law is signed.

While the bicam, which has members from the House and Senate, submitted its version of the budget on time, it has also earned criticism for removing the subsidy to the Philippine Health Insurance Corp. and slashing funding for the Department of Education.

ZERO SUBSIDY FOR PHILHEALTH

Lawmakers, including Senate President Francis “Chiz” Escudero and Sen. Grace Poe of the Senate Finance Committee, have said the zero subsidy is for PhilHealth’s failure to use funds allocated to it.

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“Hindi para sa amin na i-reward ang kapalpakan nila sa pgbibigay na naman ng perang itetengga,” Escudero said this week.

(It is not for us to reward their failure by giving them more money that will not use.)

“Ang dami ngang pera nandiyan, hindi nila pinamimigay ‘yung pera sa mga kinakailangan. Tintuturuan natin sila ng leksyon,” Poe said on the Senate floor while defending the bicam version of the budget bill.

(They have a lot of money but they are not giving it out to those who need it. We are teaching them a lesson.)

Sen. Risa Hontiveros warned that cutting the subsidy would deny Filipinos “our right to health”, especially for those whose premium contributions should be shouldered by government.

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Sen. Pia Cayetano said the cutting the subsidy would contradict laws that mandate the allocation of taxes from “sin” products like tobacco and sugary drinks to PhilHealth for universal health care.

She said PhilHealth’s excess funds are a separate issue.

For economist Cielo Magno, a former finance undersecretary, the proper punishment for PhilHealth’s alleged failures is to fire its executives, not withhold funding that could be used to expand coverage and member benefits.
For economist Cielo Magno, a former finance undersecretary, the proper punishment for PhilHealth’s alleged failures is to fire its executives, not withhold funding that could be used to expand coverage and member benefits.

PhilHealth said Saturday it has enough money for next year but that the lack of subsidy would be felt from 2026 onwards.

The state firm, which has also come under fire for planning to spend P137.7 million for its anniversary celebrations, hopes to appeal loss of its subsidy.

SLASHED FUNDING FOR DEPED COMPUTERS

The Department of Education also saw its budget slashed by around P12 billion, gutting its computerization program and, according to former Sen. Panfilo Lacson, risking violating a constitutional requirement to "assign the highest budgetary priority to education."

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Sen. Sonny Angara, a former senator and former chair of the finance committee, said this would bar many teachers and learners from access to online learning and new education technology.

“Medyo mahihirapan sila kung wala silang computer," he said.

(They will be at a disadvantage if they do not have computers.)

1-Rider Party-list Rep. Rodge Gutierrez on Sunday defended the budget cut, citing the department's track record with delayed and irregular procurement.

"Congress cannot keep throwing good money after bad," Gutierrez said as he urged Angara, who took over the department in July, to "focus on fixing DepEd’s internal mess."

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But ACT Teachers Party-List Rep. France Castro, who has also been critical of DepEd policies and performance, called the cut “a clear manifestation of the government’s anti-education and anti-poor policies.”
But ACT Teachers Party-List Rep. France Castro, who has also been critical of DepEd policies and performance, called the cut “a clear manifestation of the government’s anti-education and anti-poor policies.”

She said that the Philippines cannot address its learning crisis by spending even less on education.

“Ang P10 billion na cinut sa computerization program ay malaking dagok sa ating mga mag-aaral na desperadong makahabol sa digital age,” Castro said in a statement.

(The P10 billion cut from the computerization program will be a heavy blow to our learners who are desperately trying to catch up with the digital age.)

Castro said students, teachers and support personnel should not suffer from “anomalies” in the department.

"The answer to corruption is not to decrease funding but to strengthen accountability measures and increase support for our learners," she said.

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Kabataan Party-List Rep. Raoul Manuel said the bicam made the proposed budget worse by lowering allocations to DepEd and to the Commission on Higher Education that were already insufficient to begin with.

"Tapos ‘yung mga services through agencies sa Department of Agriculture, sa [Department of Labor and Employment], sa [Department of Social Welfare and Development], binawasan din," he also said.

(They also slashed funding for services through agencies at the Department of Agriculture, DOLE, and DSWD.)

AKAP AID RETAINS P26-B FUNDING

But not all forms of aid were cut, with the DSWD's "Ayuda para sa Kapos ang Kita Program" (AKAP) retaining an allocation of P26 billion for aid to lower-income Filipinos from an original P39 billion.

This, amid concerns the funding could be used for patronage and was not even included in the original budget proposed by the Department of Budget and Management.

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Social Welfare Secretary Rex Gatchalian has rejected comparisons to "pork barrel" funds, which the Supreme Court declared unconstitutional in 2013 for allowing lawmakers to intervene in project implementation.

“Call pa rin ng social worker kung bibigyan at kung magkano. Masisira ang pulitiko kapag sinabi niyang sagot ko ito tapos sasabihin ng social worker wala sa listahan ng mga pangangailangan, hindi namin bibigyan,” he said.

(It is still the social workers' call in the end. A politician would be embarrassed if they promise funding but a social worker will say the person endorsed is not on the list. We will not release money)

Under the Constitution, the President can — and has in the past — veto "particular item or items in an appropriation, revenue, or tariff bill" that critics of the bicam version of the budget say put the delivery of public services at risk. — From reporting by Raphael Bosano, RG Cruz, Ched Rick Gatchalian, and Victoria Tulad, ABS-CBN News

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