The Philippine Senate has ignited controversy with its version of the 2026 national budget, redirecting tens of billions of pesos away from rank-and-file government employees to significantly boost discretionary funds for local politicians.
Massive Cuts to Employee Benefits
In a move decried by lawmakers, the Senate slashed the Miscellaneous Personnel Benefits Fund (MPBF) by a staggering P55 billion. This reduces the fund to just P56.5 billion from the P111.5 billion originally proposed by Malacañang and retained by the House of Representatives.
While a portion covers transferred Subsistence Allowances, billions were genuinely cut from critical areas. These include the Performance-Based Bonus (PBB), staffing modifications, and funds earmarked for filling long-vacant government positions.
Corresponding Surge in LGU Discretionary Funds
Simultaneously, the Senate nearly doubled the Local Government Support Fund (LGSF), increasing it by a net P17.9 billion to a total of P38.1 billion. A key driver is a P7.6 billion injection into the Financial Assistance to LGUs (Falgu), raising its total to P16.7 billion.
Critics, including ACT Teachers Partylist Representative Antonio Tinio, label this a "massive slush fund for local patronage" disguised as aid. The Senate also hiked the Growth Equity Fund by P10.3 billion to P11.3 billion.
Entrenched 'Pork' Despite Anti-Pork Posturing
Despite public commitments against pork barrel, the Senate's LGU fund allocations retain broad menus for infrastructure and direct financial handouts. 'Hard pork' remains through items like local roads and bridges, with a new loophole for 'Flagship Infrastructure Projects' allowing unlimited large-scale projects.
Furthermore, 'soft pork' was expanded. The menu for direct ayuda now explicitly covers medical, funeral, transportation, food, and educational assistance. This system, critics argue, allows local officials to trade state resources for political loyalty.
Devastating Impact on Government Workforce
The budget cuts will directly impact frontline workers. A P15.8 billion cut to Staffing Modifications and a P2 billion cut to filling unfilled positions effectively freeze the regularization of thousands of contractual employees in sectors like education and health.
In State Universities and Colleges (SUCs), most faculty are on insecure Job Order or Contract of Service schemes. This budget denies them security of tenure. An additional P13.5 billion cut to the Performance-Based Bonus (PBB) pool further demoralizes a workforce grappling with low pay and high inflation.
Call to Action and Irony Noted
Rep. Tinio condemned the move as "classic bureaucrat capitalism — robbing the workers to feed the political machinery of local dynasties." He noted the irony of Senators criticizing House medical assistance funds while enabling LGUs to do the same.
The ACT Teachers Partylist demands the Bicameral Conference Committee junk the Senate's LGU pork allocations and restore the MPBF to its original level. They urge funding for regularizing contractual workers, filling plantilla positions, and granting a long-overdue increase in the Personnel Economic Relief Allowance.
