The Senate has removed the ₱80-billion Support to the Agriculture, Government Infrastructure, and Social Programs (SAGIP) allocation from the 2026 national budget even before President Ferdinand Marcos Jr. signed it, Senate Committee on Finance Chairperson Win Gatchalian said on Tuesday.
“Among the unprogrammed appropriations, the most controversial has been SAGIP, which previously funded flood control projects. That has now been removed by the Senate—over ₱80 billion,” Gatchalian said in an exclusive interview on dzRH's Dos Por Dos.
He explained that SAGIP, a lump-sum allocation under Unprogrammed Appropriations (UA), had repeatedly been flagged as a channel for "abuse and corruption."
“Ang unprogrammed kasi napakaraming items ‘yan. May isang controversial items yan na matagal ng ganyan at tinatawag na SAGIP. Ito ay isang lump sum na pinagkukuhanan ng iba't ibang ahensya kasama ng DPWH at naging source ng corruption sa mga huling taon,” he added.
“Hindi na kami [Senado] pumayag na ibalik ‘yon [₱80-billion SAGIP] kasi nagiging source of abuse iyon. [Ito] ang pinakamahalagang tanggalin," he added.
Gatchalian emphasized that there was no direct veto on programmed appropriations. Out of nine vetoed items, seven were originally submitted by the Executive in the National Expenditure Program (NEP), while the remaining two originated from the Executive during budget deliberations.
“Kaya tingin ko nagkaroon ng change of heart o nagpalit ng isip ang ating executive dito sa ating mga unprogrammed items. Importanteng matanggal itong sagip dahil ito talaga yung nagiging kuhaan ng mga hindi magagandang projects kaya tinanggal na rin iyon,” he said.
The senator also addressed concerns about the Regional Agricultural Competitiveness Enhancement (RACE) Program under the UA. He clarified that it is a book-entry item only and does not involve the disbursement of actual funds.
Similar to the Comprehensive Automotive Resurgence Strategy (CARS) Program, RACE serves as the legal basis for the Department of Trade and Industry–Board of Investments (DTI-BOI) to issue tax payment certificates. No actual cash is released.
He added that this arrangement ensures transparency while continuing support for key programs.
Gatchalian expressed concern that investors, particularly car manufacturers such as Toyota and Mitsubishi, could be discouraged if payments were delayed.
“Ang kinatatakutan ko yung dalawang car manufacturers ay baka umalis dahil hindi sila nababayaran," he said.
He clarified, however, that the program in question is designed to avoid corruption, as it operates through tax incentives rather than direct cash disbursements, and its benefits are intended specifically for the two companies.
“Nakakapagtaka itong pag-veto sa ilang items [dahil] itong [2026] budget very close ang ating coordination sa executive,” he noted.
Gatchalian reiterated that the Senate will closely monitor the implementation of the 2026 budget and coordinate with the Executive to ensure accountability in public fund usage.
