Lawmakers at the Philippine Senate, during the Committee on Finance session held on Tuesday, March 17, 2026, pushed for sweeping reforms in the national budget process to address delays in government spending that threaten economic growth and public service delivery.
Senators flagged persistent bottlenecks that leave billions in infrastructure funds unused despite completed bidding processes. These delays, often tied to pending documentary requirements such as the issuance of Special Allotment Release Orders (SARO), have stalled projects nationwide.
Sen. Win Gatchalian warned that sluggish government spending is dragging economic momentum, noting that up to 80 percent of the budget of the Department of Public Works and Highways remains unutilized under “For Issuance of SARO” status.
He emphasized that without timely disbursement, especially in the first quarter, growth could weaken further amid rising global oil prices.
Gatchalian also outlined plans to consolidate the budgeting framework, saying: “We aim to integrate different themes into one big Philippine budgeting code. It will be comprehensive. Some of the concepts, we will be expanding and detailing in the consolidated bill.”
To address funding bottlenecks, Gatchalian urged stricter implementation of the Cash Budgeting System to ensure funds are spent within the fiscal year and to instill urgency in project execution.
Senate President Pro Tempore Panfilo Lacson called for greater transparency and alignment between national and local planning. He flagged concerns over budget “insertions” and inconsistencies in tracking, stressing the need to retain the Unified Accounts Code Structure (UACS) throughout the budget cycle.
“Without UACS, we find it hard to track what happened to the projects that were added or removed. Maybe we can retain the UACS every step of the way in the entire budget cycle because currently, it only reappears on the website during the implementation. Can we institutionalize this so that UACS doesn't disappear?” Lacson said.
Meanwhile, Sen. Erwin Tulfo highlighted reports of stalled infrastructure and social service projects in the provinces, warning that delays in fund releases are slowing the economy.
“There’s no movement, and it’s affecting our economy, including infrastructure and social services, with local government units and lawmakers already raising complaints that projects remain delayed,” he said.
Tulfo also questioned whether heightened scrutiny over controversial flood control projects has slowed approvals within the Department of Budget and Management.
Lawmakers agreed that streamlining approvals, strengthening oversight, and improving transparency are crucial to ensuring government spending remains a key driver of economic growth and that projects reach communities without delay.
