Senior House Deputy Minority Leader and Caloocan City 2nd District Rep. Egay Erice explained that budget insertions and diversions are not inherently wrong, but claimed that these mechanisms have been “grossly abused” by previous congressional leaderships.
In an exclusive interview on DZRH's Dos Por Dos, Erice revealed that one major consequence of such practices was the delay in the Metro Manila Subway Project, following significant cuts in the country’s foreign-assisted loan allocations—over P200 billion in 2024 and another P157 billion in 2025.
“Alam mo ‘yong insertions, diversions hindi naman masama ‘yan per se, kaya lang talaga inabuso eh,” Erice said.
“Dapat ‘yong mga insertions, diversions, ‘yan exceptions kung kinakailangan talaga, pero ang nangyari ‘yong diversions at insertions ‘yon ang naging rule. Kaya ‘yon ang naging pinaka-masama,” the Congressman added.
According to Erice, when he inquired with the Department of Transportation about the effect of reduced Philippine equity contributions, officials confirmed that the Metro Manila Subway and the PNR elevated railway projects would be delayed by four years—from the original 2028 target to 2032.
He warned that the delays could lead to cost overruns, penalties, and higher material and labor expenses amounting to 20–30% more.
“You cannot just imagine kung gaano kalaki ‘yong papasanin at ‘yong opportunities laws, edi sana sa 2028 sumasakay na tayo sa subway, eh ngayon wala,” Erice remarked.
Recent reports have confirmed that the completion of the Metro Manila Subway and the PNR elevated railway projects has indeed been pushed back to 2032 due to budgetary constraints.
Unprogrammed funds used as an excuse
Erice also accused certain officials of using “unprogrammed funds” as a pretext for cutting allocations to major foreign-assisted flagship projects.
He claimed that funds were diverted to unprogrammed items, while the budget of PhilHealth—originally P80 billion—was reduced by P60 billion.
Similarly, he said the Philippine Deposit Insurance Corporation (PDIC) lost P107 billion, which was allegedly funneled into insertions and diversions.
